💰 Annuity Payout Calculator
Calculate annuity payout amounts
Initial amount invested in the annuity
How to Use This Calculator
Enter Principal Amount
Input the principal amount - the initial amount invested in the annuity that will be paid out over time.
Enter Interest Rate and Payout Period
Enter the annual interest rate and the number of years over which the annuity will pay out.
Select Payout Frequency
Select how often you'll receive payments: monthly, quarterly, semi-annually, or annually.
Review Payout Amount
See the periodic payout amount, annual payout, total payout over the period, and total interest earned.
Formula
Periodic Payment = Principal × (r / m) / [1 - (1 + r / m)^(-n)]
Where:
• Principal = Initial annuity amount
• r = Annual interest rate
• m = Number of payments per year
• n = Total number of payments
Example Calculation:
If principal $100,000, rate 5%, payout 20 years, monthly:
• Monthly rate = 5% ÷ 12 = 0.4167%
• Total payments = 20 × 12 = 240
• Monthly payout: ~$660
• Total payout: ~$158,400
• Total interest: ~$58,400
About Annuity Payout Calculator
An annuity payout calculator helps you calculate the periodic payment amount you'll receive from an annuity based on the principal amount, interest rate, and payout period. Annuities are financial products that provide regular payments over a specified period in exchange for an initial investment. This calculator shows you how much you'll receive per payment period (monthly, quarterly, etc.) and the total amount you'll receive over the annuity's payout period.
When to Use This Calculator
- Annuity Planning: Plan for annuity purchases and payouts
- Retirement Planning: Understand annuity income in retirement
- Payment Estimation: Estimate periodic payment amounts
- Comparison: Compare different annuity options
Understanding Annuity Payouts
- Fixed Payouts: Regular payments over a specified period
- Interest Inclusion: Payments include principal and interest
- Payout Frequency: Monthly, quarterly, semi-annual, or annual
- Total Payout: Principal plus interest earned
Why Use Our Calculator?
- ✅ Payout Calculation: See exact periodic payment amount
- ✅ Multiple Frequencies: Calculate for different payout frequencies
- ✅ Total Analysis: See total payout and interest
- ✅ Planning: Plan for annuity income
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is an annuity payout?
An annuity payout is the periodic payment you receive from an annuity contract. The payout is calculated based on the principal amount, interest rate, and payout period. Payments typically continue for a specified number of years or for life, depending on the annuity type.
How are annuity payouts calculated?
Annuity payouts are calculated using the present value of annuity formula: PMT = Principal × (r / m) / [1 - (1 + r / m)^(-n)], where r is the annual interest rate, m is payments per year, and n is total payments. This ensures the principal plus interest is fully paid out over the period.
What payout frequency should I choose?
Payout frequency depends on your needs. Monthly payouts provide regular income for living expenses. Quarterly or semi-annual payouts may work if you need less frequent payments. Annual payouts provide a lump sum each year. Consider your cash flow needs when choosing frequency.
Are annuity payouts taxable?
Annuity payouts are typically taxable as ordinary income, except for the portion that represents return of principal. With a qualified annuity (funded with pre-tax dollars), all payouts are taxable. With a non-qualified annuity (funded with after-tax dollars), only the interest portion is taxable. Consult a tax professional for advice on your specific situation.