# Annuity Payout Calculator

URL: https://speedycalculator.com/calculators/finance/annuity-payout/
Last updated: 2026-10-25

> The annuity payout calculator works out how much you can withdraw each period from a lump sum – for a fixed length of time, leaving an optional final balance – or how long a fixed withdrawal will last, with any payout frequency and timing.

## Inputs

- Starting balance
- Annual interest rate (%)
- Payout frequency
- Payouts made at
- Payout length (years, months)
- Balance left at the end
- Or: fixed withdrawal per period

## Results

- Number of payouts
- Withdrawal per period
- Total withdrawals
- Interest earned during the payout
- How long the fixed withdrawal lasts
- Will the fixed withdrawal run out?

## Formula

```
Withdrawal = (B − F ÷ (1 + i)^n) × i ÷ ((1 − (1 + i)^−n)(1 + i × timing))
Length for a fixed withdrawal = nper(i, withdrawal, B) periods
```

## Explanation

Retirees use payout calculations to turn savings into income. A longer payout period or a higher final balance lowers the withdrawal. Remember inflation: a fixed payout loses buying power each year.

### How to use the Annuity Payout Calculator

- **Starting balance**
- **Annual interest rate**
- **Payout frequency**
- **Payouts made at**
- **Payout length**
- **Balance left at the end**
- **Or: fixed withdrawal per period**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the starting balance, interest rate, payout frequency, timing and length, and any balance to leave at the end – or a withdrawal amount to see how long it lasts.

### Tips

- Start early – time does more of the work than the amount you save.
- Take the full employer match if your plan offers one.
- Plan with a cautious return (4–6% after inflation) and check again every year.
- Know the contribution limits and required minimum distribution rules for your accounts.

### Common mistakes to avoid

- Ignoring inflation when setting a retirement target.
- Underestimating how long retirement can last.
- Withdrawing early and paying penalties and taxes.

### Inputs explained

FieldWhat to enterStarting balanceAmount in your currencyAnnual interest rateIn %Payout frequencyChoose one: Monthly, Semi-monthly, Bi-weekly, Weekly …Payouts made atChoose one: End of each period, Beginning of each periodPayout lengthUnits: years, monthsBalance left at the endAmount in your currencyOr: fixed withdrawal per periodAmount in your currency

### What each result means

- **Number of payouts** = round([Payout length]×[Payout frequency])
- **Withdrawal per period** = pmt([Rate per period], [Number of payouts], [Starting balance], [Balance left at the end], [Payouts made at])
- **Total withdrawals** = [Withdrawal per period]×[Number of payouts]
- **Interest earned during the payout** = [Total withdrawals] + [Balance left at the end] - [Starting balance]

### Example values

How the main result changes when **Starting balance** changes and everything else stays at the example values above:

Starting balanceWithdrawal per period250,0001,461.48375,0002,192.21500,0002,922.95625,0003,653.69750,0004,384.431,000,0005,845.9

## Worked example

Inputs — Starting balance: $500,000; Annual interest rate: 5 %; Payout frequency: Monthly; Payouts made at: End of each period; Payout length: 25 years; Balance left at the end: $0; Or: fixed withdrawal per period: $3,000.

Results — Number of payouts = 300; **Withdrawal per period = $2,922.95**; Total withdrawals = $876,885.06; Interest earned during the payout = $376,885.06; How long the fixed withdrawal lasts = 23.8 years; Will the fixed withdrawal run out? = Yes – see how long it lasts.

## FAQ

**How much will an annuity pay out?**
It depends on the balance, rate and payout length – $500,000 at 5% over 25 years pays about $2,900 a month.

**What happens if the balance runs out?**
Payouts stop; lifetime insurance annuities avoid this.

**Should I leave a final balance?**
If you want a legacy or a safety buffer.

**What formula does the Annuity Payout Calculator use?**
Withdrawal = (B − F ÷ (1 + i)^n) × i ÷ ((1 − (1 + i)^−n)(1 + i × timing)).


## Sources

- [U.S. SEC – Investor.gov compound interest and investing basics](https://www.investor.gov/)