Annuity Payout Calculator
Adjust the inputs below. Results update as you type.
How it works
Enter your starting balance, expected annual return, and desired monthly withdrawal. The calculator solves for either the duration or the maximum sustainable payment using present-value annuity math. Inflation and taxes are not included; real purchasing power will decline unless you adjust withdrawals over time.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
The payment a lump sum can fund is PMT = PV · r / (1 − (1+r)^−n): the present value, periodic rate, and number of payouts determine each payment.
Worked example
A $300,000 balance paying out over 25 years at 4% supports about $1,575 a month before the fund is exhausted.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
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Frequently asked questions
How long will my payouts last?+
It depends on the balance, the rate earned, and the payment size. Larger payments deplete the fund faster; a higher return makes it last longer.
What is a life annuity payout?+
A payout guaranteed for as long as you live, which removes the risk of outliving your money but usually pays less than a fixed-term payout.
Does inflation affect payouts?+
Fixed payouts lose buying power over time unless the annuity has a cost-of-living adjustment, which typically lowers the starting payment.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.