Annuity Payout Calculator
See how much a lump sum can pay out each month (or year) for a set number of years while it keeps earning interest.
Payout per period
3,299.78
- Number of payouts
- 240
- Total paid out
- 791,946.89
- Of which interest earned
- 291,946.89
Show the work
Rate per period
i = annual rate ÷ 100 ÷ 12
5 ÷ 100 ÷ 12 = 0.004166666667
Number of payouts
n = years × 12
20 × 12 = 240
Payout per period
PMT = P × i ÷ (1 − (1 + i) to the power of −n)
500,000.00 × 0.004166666667 ÷ (1 − (1 + 0.004166666667) to the power of −240) = 3,299.78
Estimates for general information only — not financial advice.
How it works
Payout = B × i ÷ (1 − (1 + i)^−n) with i = annual rate ÷ payments per year and n = years × payments per year (÷ (1 + i) for payouts at the start of each period)
Questions
- How does the annuity payout calculator work?
- Payout = B × i ÷ (1 − (1 + i)^−n) with i = annual rate ÷ payments per year and n = years × payments per year (÷ (1 + i) for payouts at the start of each period).
- What do I need to enter?
- Starting balance, Annual return, Pay out for, Payouts, Paid at. Optional fields can be left blank.
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