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Annuity Payout Calculator

Math

Compute a fixed periodic annuity payout from a lump sum, or the lump sum required to fund a target payout, for an ordinary or due annuity

Enter a lump sum, a payout term, and an annual rate to see the fixed periodic payout that sum would produce over the term, or flip the calculation around and enter a desired periodic payout to see the lump sum needed to fund it. It uses the standard closed-form ordinary-annuity formula for payments made at the end of each period, or the annuity-due variant for payments made at the start of each period, which is worth slightly more per dollar of principal since each payment gets one extra period of growth. This is the decumulation side of the same math behind the site's Savings Goal Calculator (which solves for how much to save toward a future goal): here the lump sum already exists and the question is how much it can pay out, or how much a target payout actually costs today. Pure time-value-of-money arithmetic with no live rate feed, no mortality tables, and no tax or jurisdiction-specific treatment.

financeannuitycalculatorpayoutretirementtime-value-of-money

How to use Annuity Payout Calculator

  • 1.Pick a mode: solve for the periodic payout a lump sum would produce, or solve for the lump sum needed to fund a target periodic payout.
  • 2.Enter the payout term in years, payments per year, and the annual interest rate, plus the principal or target payout depending on the mode.
  • 3.Choose ordinary (payments at period end) or due (payments at period start) and read the payout, total paid, and total interest.

Frequently asked questions

Does this account for mortality or life expectancy, like a real pension annuity?
No. This is a fixed-term time-value-of-money calculation only, the same math an amortization schedule run in reverse uses. A real insurance annuity payout also depends on mortality tables and fees this tool doesn't model.
What's the difference between ordinary and due?
Ordinary assumes each payment lands at the end of its period; due assumes it lands at the start, so it earns one extra period of growth. For the same principal, a due annuity's periodic payout is always slightly lower than an ordinary one's.
Does this account for taxes on the payout?
No, it's a pure time-value-of-money calculation with no tax treatment baked in. Treat the figures as gross, before any tax you might owe.
Is my data sent anywhere?
No, the browser tool computes everything client-side. The REST API and SDKs process whatever numbers you send them, same as any other API call.

Use via API, SDK, or MCP

cURL# Free: 1,000 req/day · Pro: 10,000 req/day
curl -X POST https://api.utilix.tech/v1/tools/annuity-payout-calculator \
  -H "Authorization: Bearer utx_live_..." \
  -H "Content-Type: application/json" \
  -d '{"mode":"payout-from-principal","structure":"ordinary","years":20,"paymentsPerYear":12,"annualRatePercent":5,"principal":100000,"periodicPayout":659.96}'

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