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Annuity Payout Calculator

Find out how much income a lump sum can pay out over a fixed number of years while the remaining balance keeps earning a return.

How it works Report a problem

Annuity Payout Calculator

Determine how much monthly income your lump sum can provide over time

$0
Monthly Payout
Guaranteed income for the duration
Total Payouts
$0
Interest Earned
$0
Fund Duration
20 Yrs
Fund Depletion Timeline

Where a regular annuity calculator shows what your payments grow into, this payout calculator works in reverse: you start with a lump sum and see how much income it can pay out over a chosen period. It is the view you need when comparing annuity quotes for retirement income.

How to use this calculator

  • Enter the amount used to purchase the annuity.
  • Choose the payout period in years.
  • Add the interest rate the annuity credits during payout.
  • Press calculate to see the regular payment and the total paid out.

Reading the result

A longer payout period means smaller payments but a larger total over time, because the balance keeps earning interest while it is paid down. A shorter period raises each payment. Compare both views before deciding, and remember that insurer fees, riders and taxes will change what actually reaches your bank account.

Frequently asked questions

Is annuity income taxable?
Usually the earnings portion of each payment is taxed as income, while the part that is a return of your original money is not. The exact split depends on your contract and tax rules.
What is the difference between immediate and deferred annuities?
An immediate annuity starts paying within about a year of purchase. A deferred annuity accumulates first and starts paying at a later date you choose.
Can payments last for my whole life?
Yes, lifetime payout options exist. The payment is then based partly on life expectancy, which is why quotes differ between insurers.