Annuity Calculator
Calculate periodic payouts from a lump-sum annuity investment based on your chosen return rate, payout period, and payment frequency.
Results
What is it?
An annuity payout calculator that determines how much you will receive per period when you invest a lump sum and draw it down over a fixed number of years at a given return rate. Supports monthly, quarterly, and annual payment frequencies.
How to use
Enter the lump sum you plan to annuitize, the expected annual return, how many years you want payouts to last, and your preferred payment frequency. The calculator computes the per-period payment, annual income, total payout, and total interest earned over the life of the annuity.
Example scenario
Investing $500,000 at 5% for 20 years with monthly payments: you would receive about $3,300/month ($39,600/year). Over 20 years, the total payout would be roughly $791,000 — meaning $291,000 comes from interest earned during the payout period.
Pro tip
A fixed annuity provides income certainty, but remember that inflation erodes purchasing power over time. Consider pairing a fixed annuity with a COLA (Cost of Living Adjustment) rider, or keep a portion of your portfolio in growth investments to hedge against inflation.