Annuity Payout Calculator
Calculate periodic payouts from an annuity based on either a fixed period or fixed payment amount. This calculator helps you estimate how much you can withdraw from your annuity investment over time.
Fixed Period Results
| Starting Principal | $500,000.00 |
|---|---|
| Payout Period | 10 years |
| Payout Frequency | Monthly |
| Payout Amount | $5,551.02 |
| Total Payouts | $666,122.40 |
| Total Interest | $166,122.40 |
Fixed Payment Results
| Starting Principal | $500,000.00 |
|---|---|
| Payout Amount | $5,000.00 |
| Payout Frequency | Monthly |
| Number of Payouts | 120 |
| Total Payouts | $600,000.00 |
| Total Interest | $100,000.00 |
About the Annuity Payout Calculator
An annuity is a financial product that provides a stream of payments over time, typically used for retirement income. This calculator helps you determine how much you can withdraw from an annuity investment either for a fixed period of time or as fixed periodic payments.
Fixed Period vs. Fixed Payment
Fixed Period: Calculate how much you can withdraw each period if you want the annuity to last for a specific number of years. The payment amount will be calculated based on your principal, interest rate, and payout period.
Fixed Payment: Calculate how long your annuity will last if you withdraw a fixed amount each period. The number of payments will be calculated based on your principal, interest rate, and payout amount.
How Annuity Payouts Are Calculated
The calculator uses the time value of money formulas to determine annuity payouts:
- Fixed Period: The payment amount is calculated using the annuity payment formula based on the principal, interest rate, and number of periods.
- Fixed Payment: The number of payments is calculated by solving for the number of periods in the annuity formula based on the principal, interest rate, and payment amount.
Factors Affecting Annuity Payouts
Several factors influence your annuity payouts:
- Principal Amount: The initial investment amount in the annuity.
- Interest Rate: The rate of return on your annuity investment.
- Payout Frequency: How often you receive payments (monthly, quarterly, etc.).
- Time Period: How long you want the annuity to last (for fixed period calculations).
- Payment Amount: How much you want to withdraw each period (for fixed payment calculations).