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Free annuity payout calculator for estimating periodic payments from a lump sum using a fixed rate and term—helpful for comparing scenarios, not for product pricing.
Last updated: April 18, 2026
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Nominal annual rate; use 0 for simple division of principal
Payment per month
$3,070.44
300 payments over 25 years
Notes
Amortizing
PMT from PV
Same family of math as mortgage payment calculations.
Period rate
APR ÷ frequency
Converts annual rate to match your payout schedule.
0% APR
Principal ÷ n
Useful for simple division-of-principal thought experiments.
Sum of flows
Vs principal
See how total payments compare to the starting lump sum.
Term
User-defined
Stretch or shorten the payout to test income needs.
Disclaimer
Illustrative
Real annuities add riders, fees, and insurer-specific pricing.
Default: $500,000 lump sum, 5.5% annual rate, 25 years, monthly payments:
Estimated monthly payment
~$3,070.44
We treat your lump sum as a present value (PV), convert the annual rate to a rate per payment period, and compute the level payment that amortizes the balance over n payments. The payment formula is the standard amortization identity used in many finance and loan calculators.
n = years × payments per yearr = annual rate ÷ payments per yearIf r = 0: PMT = PV ÷ nElse: PMT = PV × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]“Total disbursed” is PMT × n. The difference versus PV is the amount of scheduled cash flow beyond returning principal under the fixed-rate assumption.
Change rate, term, or frequency to see payment sensitivity
Try our SWP calculator for another withdrawal-style model.
Get a Custom CalculatorInsurance and retirement products may use different assumptions; use this as a benchmark comparison only.
Not financial advice; for education and estimation only.
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