Annuity Payout Calculator

Fixed monthly payout from annuity principal: PMT = P × r / (1 − (1+r)^(−n)).

Inputs

Result

Loading calculator…
—

How to use this calculator

  • Enter principal, annual rate, and number of years.
  • Read monthly payout.

About this calculator

A fixed annuity pays out a constant monthly amount over a set period. The math is the same as a mortgage in reverse — given principal, rate, and term, find the payment that fully amortizes the principal plus interest. A $200k annuity at 5% over 20 years pays ~$1,320/mo, returning $317k total ($117k interest).

Frequently asked

How does this differ from an amortizing mortgage?+
Same math, opposite direction. A mortgage you pay; an annuity pays you. The PMT formula is identical.
Period certain vs life annuity?+
This calculator computes period-certain (fixed years). Life annuities pay until death — better longevity insurance, but harder to compute without actuarial tables.
Inflation-adjusted vs fixed?+
Fixed annuities lose purchasing power to inflation. Inflation-adjusted (CPI-linked) annuities exist but are rare and expensive.
When does an annuity make sense?+
Retirees who want predictable income and worry about outliving savings. Less efficient than self-managed investments mathematically; better for those without investment skills/discipline.
Tax treatment?+
Qualified annuity (from IRA/401k): payments fully taxable. Non-qualified: only the interest portion of each payment is taxed.

Related calculators

Life Insurance Needs Calculator (DIME)
How much life insurance do you need? DIME = Debt + Income (× years) + Mortgage + Education.
Long-Term Care Insurance Cost Estimator
Average annual premium varies sharply with age at issue — buying earlier is much cheaper.
Term vs Whole Life Comparison
Compare 30-year cost: cheap term + invest-the-difference vs more-expensive whole life with cash value.
Disability Insurance Needs Calculator
Compute monthly benefit needed: typically 60-70% of gross income, less Social Security DI.
Umbrella Policy Coverage Calculator
Recommended umbrella coverage = net worth + 5-10× annual income (lawsuit-protection rule of thumb).
Life Insurance Cash Surrender Value
Cash surrender = cash value − surrender charges. Estimate before cancelling permanent policy.

More tools you might like

Hand-picked tools that pair well with this one — same audience, same intent.

Disability Insurance Needs Calculator
Calc

Compute monthly benefit needed: typically 60-70% of gross income, less Social Security DI.

Life Insurance Needs Calculator (DIME)
Calc

How much life insurance do you need? DIME = Debt + Income (× years) + Mortgage + Education.

Term vs Whole Life Comparison
Calc

Compare 30-year cost: cheap term + invest-the-difference vs more-expensive whole life with cash value.

Umbrella Policy Coverage Calculator
Calc

Recommended umbrella coverage = net worth + 5-10× annual income (lawsuit-protection rule of thumb).

Long-Term Care Insurance Cost Estimator
Calc

Average annual premium varies sharply with age at issue — buying earlier is much cheaper.

Dollar-Cost Averaging Calculator
Finance

Outcome of investing a fixed amount monthly over time.