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Annuity Calculator

Work out the regular income a lump sum can provide. Enter a starting balance, the annual return it earns, and how many years the payments should last. The calculator finds the level payment that brings the balance to exactly zero at the end, paid monthly, quarterly or yearly.

Quick examples
$
%
years
Your numbers stay in your browser. Nothing is uploaded.
Payment each period$2,922.95
Income per year
$35,075.40
Total paid out
$876,885.06
Of which is interest
$376,885.06
Of which is your balance
$500,000.00
Where the payouts come from
  • Your balance
  • Interest

Saved setups

Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.

    Your recent calculations

    Results you calculate here are kept on this device so you can come back to them.

      Formula

      Rate per period i = annual return ÷ payments per year; number of payments N = years × payments per year
      Payment at period end = balance × i ÷ (1 − (1 + i)^−N)
      Payment at period start = that amount ÷ (1 + i)
      At 0% return: payment = balance ÷ N

      How to use it

      1. Enter the lump sum available.
      2. Enter the yearly return the remaining balance will earn.
      3. Enter how many years the income must last and how often it is paid.

      Worked examples

      $500,000 paying out monthly for 25 years at 5%

      Payment each period
      $2,922.95
      Income per year
      $35,075.40
      Total paid out
      $876,885.06
      Of which is interest
      $376,885.06

      $100,000 paying out yearly for 10 years at 6%

      Payment each period
      $13,586.80
      Income per year
      $13,586.80
      Total paid out
      $135,867.96
      Of which is interest
      $35,867.96

      The same $100,000 with payments at the start of each year

      Payment each period
      $12,817.73
      Total paid out
      $128,177.32
      Of which is interest
      $28,177.32

      What this models

      This is a fixed-period payout: level payments for a set number of years, after which the money is gone. It fits planned drawdowns from savings, structured settlements and period-certain annuities.

      A lifetime annuity from an insurer is priced differently — on life expectancy, the insurer’s costs and current interest rates — so its quote will not match this figure. Payments here are not adjusted for inflation; a level $2,900 a month buys noticeably less in year 25 than in year 1. This is an estimate, not financial advice.

      Questions people ask

      How much does a $500,000 annuity pay per month?

      Over 25 years at a 5% return, $2,922.95 a month, or $35,075.40 a year. Total payouts are $876,885.06, of which $376,885.06 is interest.

      How much income will $100,000 provide?

      At 5% over 20 years, $659.96 a month. Paid yearly over 10 years at 6% it is $13,586.80 a year.

      What is the difference between an ordinary annuity and an annuity due?

      An ordinary annuity pays at the end of each period; an annuity due pays at the start. Because the money leaves sooner, the payment is smaller: $12,817.73 instead of $13,586.80 in the $100,000 example.

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