Annuity Calculator
Estimate the monthly and total payout from a fixed-period annuity given your premium, rate, and payout length.
Your annuity
Estimated monthly payout
for years
Total received
Total interest
Payout composition
How to Use
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1
Enter the premium. Add the amount you will put into the annuity.
-
2
Set the rate. Enter the annuity's annual interest/crediting rate.
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3
Choose the payout length. Enter how many years payments should last.
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4
Review payout. See your monthly payment, total received, and total interest.
Calculation Method
The monthly payout is the amortized payment that exhausts the premium plus credited interest over the payout period:
PMT = P × i / [1 − (1 + i)−n]
where P = premium, i = monthly rate (annual ÷ 12), n = total monthly payments (years × 12). This models a fixed, fixed-period annuity; lifetime annuities use mortality-based pricing.
Examples
Example. A $250,000 premium at 4% paying out over 20 years yields roughly $1,515/month — about $363,500 total, of which ~$113,500 is interest.
Frequently Asked Questions
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Disclaimer: Calculations are projections based on the assumptions you provide and are for informational purposes only. They are not financial, tax, or investment advice. Investment returns are not guaranteed. Consult a Certified Financial Planner (CFP) before making retirement decisions.
Data source: Standard annuity amortization (annuity-immediate payment formula).