Annuity Payout Calculator
Calculate the periodic payout from an annuity based on initial principal, interest rate, and payout duration.
Published by:
isCalculator Editorial Team
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How to Use the Annuity Payout Calculator
This calculator determines the fixed periodic payment you can withdraw from an initial investment (principal) over a set time, given an expected annual return.
- Enter Initial Principal ($): The total lump sum you invest (e.g., $100,000). Must be a non-negative number.
- Enter Annual Interest Rate (%): The expected yearly return (e.g., 5 for 5%). Use 0% for no growth.
- Enter Payout Duration (Years): How many years you want to receive payments (minimum 1).
- Select Payments Per Year: Choose how often you get paid (Annual, Semi-Annual, Quarterly, or Monthly).
- Click "Calculate Payout": The result shows your periodic payment amount. If rate is 0%, payout equals principal divided by total payments.
Note: All monetary values are in US dollars ($). The formula adjusts for compounding frequency automatically.
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Frequently Asked Questions
An annuity payout is a series of equal payments made at regular intervals over a specified period, funded by an initial lump sum investment.
The payout is calculated using the formula for the present value of an ordinary annuity: P = (PV * r) / (1 - (1 + r)^(-n)), where PV is the principal, r is the interest rate per period, and n is the total number of payments.
If the interest rate is zero, the payout is simply the principal divided by the total number of payments.
