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Annuity Payout Calculator

Estimate the monthly income a lump sum can pay out over a set number of years.

$

Results update as you type.

Monthly payout

$1,649.89
Yearly payout
$19,799
Total paid out
$395,973
Interest earned
$145,973
  • Your lump sum63%
  • Interest earned37%
Monthly payout$1,649.89

Results are estimates for planning and are not financial advice.

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Quick answer

$250,000 earning 5% can pay about $1,650 a month for 20 years.

How it works

This treats your lump sum like a loan you pay yourself back: the balance keeps earning a return while it pays out equal monthly amounts until it reaches zero.

Formula

Payout = P × r ÷ (1 − (1 + r)^−n), where r = monthly rate and n = months

Assumptions & limitations

  • Fixed return every year
  • Payments at the end of each month
  • No fees or taxes

Frequently asked questions

Is this what an insurance company would pay?

Not exactly. Commercial annuities price in fees, life expectancy and guarantees, so quotes will differ.