Annuity Payout Calculator

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

Inputs

Result

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General calculation reads

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Scientific calculator (Casio fx-991EX)
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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.

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