What is an Annuity Payout?
An annuity payout is a series of scheduled payments made from an investment or insurance product. It is designed to provide a steady stream of income, typically during retirement. Our calculator helps you determine the periodic payment amount you can receive until the principal is exhausted.
The Payout Formula
To calculate the monthly payment (PMT) for a fixed period, we use the following formula:
Where:
- PV: Present Value (Current Principal)
- r: Monthly Interest Rate
- n: Total number of payment periods (Months)
Fixed Period vs. Fixed Amount
There are two ways to calculate your payout. A Fixed Period tells you what your monthly check will be if you want the money to last exactly 20 years. A Fixed Amounttells you how many years your money will last if you withdraw exactly $5,000 per month.
Inflation Warning
In 2026, even low inflation can erode purchasing power. If your annuity payout is fixed at $3,000/month, that amount may buy significantly less 15 years from now. Consider an "Inflation-Protected" annuity or keeping a lower withdrawal rate.