Annuity Payout Calculator
Calculate periodic payout from an annuity lump sum over a term.
- Last reviewed
- August 26, 2026
- Cost
- Free to use
- Data
- Runs in your browser
- Reviewed by
- Anton Jonson
Periodic Payout
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Total Payout
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Interest Earned
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Annual Income
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Methodology
How this calculator handles inputs
This calculator uses the values you enter above and applies the formula explained in the guide below. Results update in the browser and are intended for quick planning, comparison, and sanity-checking.
- Use consistent periods, currencies, and units across inputs.
- Review any assumptions before using the result in a decision.
- Recalculate when rates, prices, tax rules, or business terms change.
Important note
This tool provides general planning information only. It is not tax, legal, financial, accounting, or investment advice. Check the current rules for your location and speak with a qualified professional before making a high-stakes decision.
Guide
How it works
Use this calculator to estimate periodic payout from an annuity lump sum over a fixed term.
What this calculator does
The annuity payout calculator converts a present value into regular payouts. It accounts for interest rate, payout frequency, and payout term.
It uses:
- lump sum or present value
- annual interest rate
- payout period
- payout frequency
Annuity Payout Formula
PMT = PV × (r / (1 - (1 + r)^-n))
Where:
- PMT = periodic payout
- PV = present value or lump sum
- r = periodic interest rate
- n = number of payout periods
Example calculation
If:
- Present value = 500,000
- Interest rate = 5%
- Payout period = 25 years
- Frequency = monthly
Then:
- Monthly rate = 5% ÷ 12
- Periods = 300
- Payment is calculated from the annuity formula
- Annual income equals monthly payout × 12
The payout depends on rate and term.
What is annuity payout?
Annuity payout is the regular income produced from a lump sum over a stated term. It may be monthly, quarterly, or annual.
Why annuity payout matters
- turns savings into income
- supports retirement budgeting
- compares payout periods
- shows total interest earned
When to use this calculator
- estimating income from a lump sum
- comparing monthly and annual payouts
- testing interest rates
- planning retirement cash flow
Common mistakes
- using zero payout period
- ignoring taxes and fees
- assuming payout is guaranteed without contract terms
- comparing payout without term length
Annuity payout vs annuity value
Annuity payout calculates income from a lump sum. Annuity value calculates what regular payments may grow into.
They are opposite sides of annuity math.
FAQs
What is annuity payout?
Annuity payout is regular income generated from a lump sum or present value.
How do you calculate annuity payout?
Use the payment formula with present value, periodic rate, and number of periods.
What is a good annuity payout?
A good payout meets income needs without exhausting funds too soon.
What is the difference between payout and value?
Payout turns assets into income. Value projects payments into a future balance.
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