Annuity payment calculator
Handy for retirement: how much can I draw each month so my balance lasts as long as I need?
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter lump sum, annual interest rate, term, payment frequency and payment timing.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
i = r/n, N = years × n. Payment = PV × i / (1 − (1+i)^−N), divided by (1+i) for start-of-period payments. At 0%: PV / N.
Example
Inputs: Lump sum = 500,000 your currency, Annual interest rate = 5 %, Term = 20 years, Payment frequency = Monthly, Payment timing = End of each period. Result: Payment per period: 3,299.78; Total paid out: 791,946.89; Interest earned during payout: 291,946.89.
Limits and caveats
- Assumes a steady return through the payout; volatile returns can drain the balance sooner.
- Inflation and rising payouts are not modelled.
Questions about this tool
Does the balance reach zero at the end?
Yes. The payment is set so the balance hits exactly zero with the last payment.
Is this the same formula as a loan payment?
Mathematically yes. With a loan the bank pays you and you repay; here you pay yourself from your balance.
What if I want to keep the principal intact?
Withdraw only the interest, PV × r / n each period, or use the perpetuity calculator.