Annuity Payout Calculator - Monthly Annual Withdrawal Online
Calculate your monthly payout from a lump sum annuity based on the principal, interest rate, and payout period.
How to use this calculator
👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉
In plain English — what does this do?
💵 A money helper! It works out things like how much to save, how much you owe, or how much you’ll have in the future. Just fill in the boxes and you’ll get your answer.
An annuity payout calculator determines how much monthly income you can draw from a lump sum over a set period while earning interest. This is the reverse of the savings annuity — instead of building a nest egg, you're systematically drawing it down. It's commonly used to plan retirement income from savings, pension lump sums, or insurance settlements.
Monthly Payment
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Total Paid Out
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Interest Earned
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What is Annuity Payout Calculator - Monthly Annual Withdrawal Online?
An annuity payout calculator determines how much monthly income you can draw from a lump sum over a set period while earning interest. This is the reverse of the savings annuity — instead of building a nest egg, you're systematically drawing it down. It's commonly used to plan retirement income from savings, pension lump sums, or insurance settlements.
How to use it
- 1️⃣ Enter your lump sum (present value) — the amount you're starting with.
- 2️⃣ Enter the annual interest rate the funds will continue to earn during the payout period.
- 3️⃣ Enter the number of years you want the payout to last.
- 4️⃣ Your monthly payment, total amount paid out, and total interest earned appear instantly.
- 5️⃣ Adjust the years to balance income level against how long the money lasts.
Formula
💡 See it in action — a real example
❓ Common questions
- What happens if I outlive the payout period?
- With a fixed-period annuity, payments stop when the term ends. To avoid outliving your money, choose a longer payout period, purchase a lifetime annuity from an insurer, or maintain a buffer in other accounts.
- Is the interest rate realistic?
- Current fixed annuity rates range from 3%–6%. For planning, use a rate that matches what your insurer or investment account actually pays. Overstating the rate will make payouts appear higher than they'll be.
- How does this differ from a mortgage calculation?
- The math is identical — a mortgage is essentially a lender's annuity payout on the money they lent you. The same present-value formula applies to both loan payments and income drawdowns.
- Can I take more or less than the calculated amount?
- If you take more, you'll deplete the principal faster and may run out before the period ends. If you take less, the account grows and could last longer or leave a remainder.
- What is total interest earned?
- It's the difference between total payouts and the original lump sum. This is real money your principal earns during the drawdown period — it meaningfully extends how long a given lump sum can sustain you.