Loading…
Find annual and monthly payouts from a principal over N years.
🏦 Annuity: how much you can withdraw yearly so the money lasts exactly N years. Common for retirement planning.
An annuity pays out a fixed amount regularly from a principal over a set period. This calculator finds the annual and monthly payout that exhausts the principal in exactly N years, accounting for investment growth.
Annual payout = P × r / (1 − (1 + r)^−n), where P is principal, r is annual rate, and n is years. The formula ensures the balance hits zero exactly at year n.
Suppose you retire with $500,000, want it to last 25 years, and expect a 5% annual return. Plugging into the formula: the annual payout is about $35,480, or roughly $2,960/month. If you only need it to last 20 years, the payout rises to about $40,120/year — a shorter horizon means more each year, but a higher risk of outliving the money.
An annuity pays out for a fixed term. A perpetuity pays forever (the "4% rule" for retirement is roughly a perpetuity designed to never run out). For very long horizons (30+ years), the two converge.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, investment, or legal advice. Calculated results are estimates based on the inputs you provide; actual figures may vary. Always consult a qualified professional before making financial decisions.
The Annuity Calculator lets you figure out annuity calculatorinstantly, without reaching for a spreadsheet or doing the math by hand. Whether you're planning a budget, checking a loan, or working through homework, the tool applies the correct formula behind the scenes and shows the result the moment you enter your numbers.
Unlike a static chart or table, this calculator adapts to your exact inputs. You can adjust any value and see the outcome update in real time, which makes it easy to compare scenarios — for example, "what if the rate were 1% lower?" or "what if I paid an extra $50 a month?"
Common uses: people reach for this tool when they need to find a annuity payout calculator by years, how long will annuity last, monthly payout from principal, or annuity withdrawal rate calculator.
Browser-based tools like this one have a few real advantages over installed software or manual methods:
The Annuity Calculator is based on the following formula:
PMT = P × [ r(1+r)^n / ((1+r)^n − 1) ]
Variables: PMT = Fixed payment per period ($) P = Present value, the balance being paid out ($) r = Interest rate per period (as a decimal) n = Number of periods
Fixed payment (PMT) that pays off a present value P over n periods at rate r — the same amortization formula as a loan, used here for annuity payout planning.
Worked example: Step 1: P = $500,000, annual rate 5% → r = 0.05 / 12 = 0.0041667, n = 20 × 12 = 240 monthly payments. Step 2: (1.0041667)^240 ≈ 2.71264. Step 3: numerator = 0.0041667 × 2.71264 ≈ 0.0113027; denominator = 2.71264 − 1 = 1.71264. Step 4: payment factor = 0.0113027 / 1.71264 ≈ 0.0065996. Result: PMT = 500,000 × 0.0065996 ≈ $3,300 per month for 20 years (about $792,000 paid out in total).
More tools you might find useful