Annuity Payout Calculator
Monthly income from a lump-sum annuity.
Inputs
$
%
yrs
Result
Monthly Payout$2,922.95
Total Received$876,885.06
About the Annuity Payout Calculator
The Annuity Payout Calculator determines the monthly income you can draw from a lump sum for a fixed number of years, given an assumed return.
Calculation method
Solves the annuity present-value formula for the payment.
PMT = PV × r / (1 − (1+r)^-n)How to use this calculator
- Enter the starting balance.
- Enter the expected annual return during payout.
- Enter the payout period in years.
Example
$500,000 at 5% for 25 years supports about $2,920 per month in payouts before it runs out.
Frequently asked questions
Will this last for life?
Only for the years you enter. For guaranteed lifetime income, buy a life annuity from an insurer, which pays for as long as you live.
How much should I withdraw in retirement?
A common guideline is the 4% rule — withdraw 4% of the starting balance in year 1, then adjust for inflation each year.
What return should I assume?
Retirement portfolios often assume 4–6% for a balanced allocation. More stocks means higher expected return but more downside risk.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.