What formula does this use?

The standard annuity payment formula: PMT = PV × [r(1+r)^n] / [(1+r)^n − 1], where PV is the present value (lump sum), r is the periodic interest rate, and n is the total number of payment periods.

What is an immediate vs. deferred annuity?

An immediate annuity begins payments at the end of the first period. A deferred annuity delays the start of payments by a specified number of years, during which the principal grows at the stated interest rate.

How does payout frequency affect the payment amount?

Monthly payouts divide the annual rate by 12 and multiply the number of years by 12. This produces smaller but more frequent payments. Annual payouts use the full yearly rate and period count.

Does the calculator account for taxes or fees?

No. This tool provides a mathematical estimate only. Actual annuity payments are subject to insurer fees, surrender charges, and income taxes that vary by product and jurisdiction.

What happens to any remaining balance?

A fixed-term annuity is fully depleted by the final payment — balance reaches zero. The amortization table shows the interest and principal breakdown for each period.

Annuity Payout Calculator

Name: Annuity Payout Calculator
Availability: InStock
Author: Nham Vu

Enter a lump sum, interest rate, and payout duration to calculate your periodic annuity payment.

Annuity Parameters

Lump Sum (Present Value)

Annual Interest Rate

Payout Duration (Years)

Payout Frequency

Monthly Annual

Annuity Type

Immediate

Payments begin right away

Deferred

Principal grows before payouts start

Payment per Period

—

monthly

Total Payout

—

over full term

Total Interest Earned

—

above principal

Effective PV at Start

—

after deferral growth

Principal vs. Interest Breakdown

Principal Interest

Amortization Schedule Showing all periods

Period	Payment	Interest	Principal	Balance

Fill in the parameters and click Calculate Payout

Summary

Enter a lump sum, interest rate, and payout duration to calculate your periodic annuity payment.

How it works

Enter the lump sum (present value) you have available.
Set the annual interest rate offered by the annuity.
Choose your payout frequency: monthly or annual.
Enter the payout duration in years.
Select immediate (payments start now) or deferred (payments start after a deferral period).
The calculator applies PMT = PV × [r(1+r)^n] / [(1+r)^n − 1] to compute each payment.

Use cases

Estimate monthly retirement income from a pension lump sum or 401(k) rollover.
Compare immediate vs. deferred annuity options before purchasing a product.
Determine how long a lump sum will last at a given interest rate and withdrawal amount.
Plan structured settlement payouts or lottery winnings over a fixed term.

Frequently Asked Questions

Last updated: 2026-06-11 · Reviewed by Nham Vu