Annuity Payout Calculator

An annuity payout converts a lump of capital into equal periodic payments over a fixed horizon, drawing down principal and earnings together. At its core the tool evaluates PMT = present value × r ÷ (1 − (1 + r)^−n). Spending 400,000 evenly over 20 years at 5% annual (r = 0.004167, n = 240): each monthly payout is 400,000 × 0.004167 ÷ (1 − 1.004167^−240) ≈ 2,640 — capital exhausted exactly at year 20. Adjust any field and the outputs recompute immediately, so you can test as many scenarios as you like in the units you prefer.

1. 1

   Step 1

   Gather the numbers the Annuity Payout Calculator needs and type them in.

2. 2

   Step 2

   The engine evaluates PMT = present value × r ÷ (1 − (1 + r)^−n) instantly as you type.

3. 3

   Step 3

   Check the output and its unit before using it.

4. 4

   Step 4

   Repeat with different inputs to test alternatives.

• Ignoring inflation drag

• Forgetting fees

• Outliving the plan