Annuity Payout Calculator
When inputting the numbers: use no commas, dollar signs or per cent signs.

The time period during which an annuity is being "built up" is called the accumulation phase and the calculator for doing those computations is located here.

When you retire and you start receiving payouts, the annuity has entered its annuitization phase and the computations for that phase can be done on this page.

NOTE: To see the formula for the annuitization phase, click here.

There are several ways in which an annuity may be paid out, the most common of which is the systematic withdrawal schedule. Under this payout system, the principal continues to earn interest until the balance reaches zero. You (or whoever is in charge of your annuity) compute the annual (or monthly) payment you will receive. Most importantly, you must decide how long the annuity payments are to continue because you don't want to "outlive" the annuity.

The annuity payout calculator allows you the option of solving for any of 4 variables.
• Click on the variable you want to solve
• Input the other 3 numbers
• Click on the "CALCULATE" button
• the answer is then displayed

Scroll down for 4 annuity examples to help familiarize yourself with the annuity payout calculator.

Do you want to solve for

or or or


1) At retirement, you would like your annuity to pay you $25,000 per year for 20 years while it earns 8% interest. How much principal is required to make this possible?

Click on the Principal button, enter the 3 amounts, click CALCULATE and you'll see that this requires a principal of $245,453.69.

2) For your retirement, you are planning on having a $200,000 annuity, earning 7% interest and you predict you'll need this for 10 years. What is the annual payout you can expect from this?

Click on the Annual Payout button, enter the 3 amounts, click CALCULATE and the answer is $28,475.50

3) On retirement, you expect to have $100,000 earning 6% interest and you would like this to pay out $15,000 per year. How long will this last?

Click on the YEARS button, enter the 3 amounts, click CALCULATE and the answer is 8.77 years.

4) You are planning on having an annuity with a $300,000 principal, that will pay out $35,000 for 15 years. What interest rate would you need?

Click on the RATE button, enter the 3 amounts, click CALCULATE and the answer is 7.9772 per cent.

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