Annuity Payout Calculator
Annuity payout calculator: the monthly income a lump sum can pay until it runs out, or the balance needed for a target payout.
M = PV · r1 − (1 + r)−n
How to use this calculator
- Choose the quantity you want under “Solve for”.
- Type the known values and pick their units: any combination works.
- The result updates as you type. Open “Show the steps” to see the substitution.
The balance keeps earning the return while you withdraw a fixed amount each month; it reaches zero at the end of the period.
Estimates for planning only; not financial advice. Your lender’s or provider’s figures may differ.
Formula
M = PV · r1 − (1 + r)−n
| Symbol | Quantity | Units |
|---|---|---|
| PV | Starting balance | $, €, £ |
| i | Annual return | %, × |
| t | Payout period | years, months |
| M | Monthly payout | $, €, £ |
Constants used: r = annual return / 12 · n = months
Worked example
Given: PV = 300,000.00 $ · i = 5 % · t = 25 years
M = PV r1 − (1 + r)−n
Result: M = 1,753.77 $
Monthly payout for different values of Starting balance
| PV · Starting balance | M · Monthly payout |
|---|---|
| 150,000.00 $ | 876.89 $ |
| 225,000.00 $ | 1,315.33 $ |
| 270,000.00 $ | 1,578.39 $ |
| 300,000.00 $ | 1,753.77 $ |
| 330,000.00 $ | 1,929.15 $ |
| 375,000.00 $ | 2,192.21 $ |
| 450,000.00 $ | 2,630.66 $ |
| 600,000.00 $ | 3,507.54 $ |
Other values as in the worked example.
Frequently asked questions
$300,000 at 5 % paid out over 25 years?
About $1,753.77 a month.
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