This annuity payout calculator shows how much regular income a lump sum can provide over a chosen number of years, or how long your money will last if you take a set amount each month, quarter or year. Use it for retirement savings drawdown, a lottery or settlement payout, or to sanity-check an annuity quote.
Annuity payout formula
Payout = P × i ÷ (1 − (1 + i)−n)
P is the starting balance, i is the rate per period and n is the number of payouts. If payments are made at the start of each period (an annuity due), the result is divided by (1 + i).
Worked example
A $300,000 balance earning 5% a year can pay about $1,979.87 a month for 20 years before it runs out. Over that time it pays out about $475,170 in total. If you took $2,000 a month instead, the money would last about 19 years 8 months.
Calculator vs an insurance annuity
This calculator models a fixed-period payout from a balance earning a steady return. An immediate annuity bought from an insurance company can pay for the rest of your life, however long that is, which protects you from outliving your money. Insurers price that in, so quotes depend on your age, sex, interest rates and options such as inflation protection or a guaranteed period.
Questions to ask before buying an annuity
- Is the income fixed, or does it rise with inflation?
- What happens to the money if you die early?
- What fees and surrender charges apply?
- How financially strong is the insurer, and what does your state guaranty association cover?
Frequently asked questions
How much does a $100,000 annuity pay per month?
It depends on the rate and payout period. Over 20 years at 5%, $100,000 pays about $660 a month in this calculator. A lifetime annuity from an insurer would quote a different amount based on your age.
What is the difference between an ordinary annuity and an annuity due?
In an ordinary annuity, payments are made at the end of each period. In an annuity due, they are made at the start, so each payment is slightly smaller for the same balance.
Will my money last forever?
Only if each payout is no more than the interest earned. The calculator tells you when that happens.
Are annuity payments taxed?
Usually, at least in part. Payments from pre-tax retirement accounts are fully taxable; for annuities bought with after-tax money, only the earnings part is taxed. Rules differ by country.
Is the return guaranteed?
Not in this calculator, which assumes a steady return. Fixed annuities from insurers guarantee their rate; variable annuities do not.
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Last reviewed: October 2026. This calculator is for education only and is not financial, tax or legal advice.