Annuity Payout Calculator

This annuity payout calculator works out the regular income a lump sum can pay you over a set number of years, while the balance keeps earning interest. It answers the practical retirement question: if I have this much saved, how much can it pay me each month or year before it runs out? You enter the lump sum you are starting with, the annual interest rate you expect the balance to earn, how many years you want the income to last, and how often you want to be paid. The calculator applies the standard annuity payment formula to find the level payout that draws the balance down to exactly zero at the end of the term, then shows the total you would receive over the whole period and how much of that is interest earned along the way rather than your original capital. A higher expected return lets the same lump sum pay a larger amount each period, because the balance is still working while it is paid out, and a longer term lowers each payment because the money is spread thinner. This is the fixed-term version of turning savings into income, useful for sizing a retirement drawdown, checking what an insurer's annuity quote implies, or planning how long a redundancy payout or inheritance could support you. It assumes a steady return and level payments, so treat it as an indicative estimate: real returns vary year to year, and it is general information, not financial advice.

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Level payout that draws the balance to zero at the end of the term, assuming a steady return. Real returns vary, so treat this as an estimate. Not financial advice.