Annuity Payment Calculator

Find how much a lump sum can pay you each month or year for a set time, while the rest keeps earning.

$
$
Payments At
Fractions and decimals both work.
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Per Month
Number of payments
Total paid out
Earnings along the way
First year
Per Year

Payout Options

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OptionBalanceRateYearsPaymentRemove

How to Calculate an Annuity Payment

An annuity pays out a balance in equal installments while the rest keeps earning. The payment is the amount that brings the balance down to your target (usually zero) after the last payment.

Payment = (PV − FV ÷ (1 + i)n) × i ÷ (1 − (1 + i)−n)

i is the rate per payment (annual ÷ payments per year) and n the number of payments. For payments at the start of each period, divide by (1 + i). This matches Excel's PMT function.

Worked Example

Tips

This is a fixed-rate illustration. Insurance-company annuities price in mortality and fees, and investment returns vary from year to year, so a real withdrawal plan should leave a margin. See the retirement calculators for withdrawal-rate planning.