Annuity Calculator
Work out the monthly income a lump sum can pay for a set number of years, or how long a monthly withdrawal will last.
Monthly payout
$1,753.77
- Total paid out
- $526,131
- From growth
- $226,131
- $2,000/mo lasts
- 19 yrs 8 mo
Remaining balance
Explain my numbers
Get a plain-English reading of the result above: what drives it, what the trade-offs are and what to ask a lender or adviser. It is educational, not financial advice. Only these inputs and results are sent, and nothing is stored.
Payout formula
Payment = PV · i ÷ (1 − (1 + i)−n)
The payment is fixed in dollars, so inflation erodes it: at 3% inflation, a fixed payment buys about 26% less after 10 years. If that matters for your plan, check the effect with the inflation calculator or plan a rising withdrawal in the retirement calculator.
Frequently asked questions
How much does a $300,000 annuity pay per month?
Paid out over 25 years at a 5% return, $300,000 supports about $1,754 a month before tax, reaching zero at the end. Actual quotes from insurers for a lifetime annuity depend on your age, sex and current interest rates.
What is the annuity payout formula?
Payment = PV × i ÷ (1 − (1 + i)^−n), where PV is the lump sum, i the monthly rate and n the number of monthly payments. It is the loan payment formula seen from the lender’s side.
Is this the same as buying an annuity from an insurer?
Not exactly. This calculator models a fixed-period (period-certain) payout from your own balance. A lifetime immediate annuity from an insurance company pools longevity risk, so it can pay for life, but the money is usually not refundable.
How long will my money last if I withdraw a set amount?
Enter the monthly amount you want in the second box. If it is less than the monthly interest on the balance, the money lasts indefinitely; otherwise the calculator shows how many years it lasts.