Annuity Income Calculator

Find how much monthly income a lump sum can pay out over a fixed period.

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Amounts in dollars.
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Monthly income
Per year
Total paid out
Interest earned
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How Annuity Payouts Are Calculated

Payment = P × i ÷ (1 − (1 + i)⁻ⁿ), i = rate ÷ 12, n = months

This is a period-certain payout, like a fixed annuity for a set term or drawing down savings on a schedule. Matches Excel’s PMT.

Worked Example

Tips

Lifetime annuities are priced by insurers using life expectancy and their own rates, so quotes differ from this. Check fees, surrender charges and the insurer’s financial strength rating.