Find the monthly, quarterly or annual payout a given annuity principal supports over your chosen term.
Understanding the annuity payout calculation
The payout is the amortisation of your principal plus credited interest across the payment period — the same maths as a loan payment, run in the opposite direction.
Shortening the term raises each payment; extending it lowers them but increases the total interest credited along the way.
How to use it
- Enter the principal and interest rate.
- Choose the payout term and frequency.
- Read the payment amount and the total paid out.
The maths behind it
payment = principal × r ÷ (1 − (1+r)⁻ⁿ)
Try it with these numbers
On the values this calculator opens with, the payment amount is $1,649.89. Underneath, Value when payouts begin comes out at $250,000 and Total paid out at $395,973.44. Change any field and every figure updates as you type.
Questions people ask about this
What happens if I outlive the term?
A period-certain annuity stops when the term ends. A life annuity pays until death but usually offers a smaller payment.
Can I take money out early?
Most contracts apply surrender charges in the early years. Check the terms before committing.