Annuity Calculator
Work out what an annuity pays or what it grows to. In payout mode, see the regular income a lump sum can provide over a set term. In accumulation mode, see the value of regular contributions or the contribution needed to reach a target.
0 to use up the whole principal.
Compounded at the payment frequency.
How to use the Annuity Calculator
- Choose the annuity type: payout (income) or accumulation (saving).
- Enter the principal and, for accumulation, your contribution or target.
- Set the rate, years and payment frequency.
- Pick the timing: end of period (ordinary) or start of period (annuity due).
- Press Calculate to see the payment or value, the schedule and the chart.
Annuity formulas
- Payout from a principal: PMT = (P − R ÷ (1 + i)n) × i ÷ [1 − (1 + i)−n], where R is the balance left at the end (usually 0).
- Future value of contributions: FV = P × (1 + i)n + PMT × [(1 + i)n − 1] ÷ i
- Contribution for a target: PMT = (Target − P × (1 + i)n) ÷ ([(1 + i)n − 1] ÷ i)
- Annuity due: payments at the start of each period. Divide the payout by (1 + i), or multiply the contribution FV factor by (1 + i).
Here i is the annual rate divided by the number of payments per year and n is the total number of payments.
Monthly payout per $100,000
Fixed-term payout at the end of each month, with the principal used up to $0:
| Years | 3% | 4% | 5% | 6% |
|---|---|---|---|---|
| 10 | $965.61 | $1,012.45 | $1,060.66 | $1,110.21 |
| 15 | $690.58 | $739.69 | $790.79 | $843.86 |
| 20 | $554.60 | $605.98 | $659.96 | $716.43 |
| 25 | $474.21 | $527.84 | $584.59 | $644.30 |
| 30 | $421.60 | $477.42 | $536.82 | $599.55 |
Scale the table to your amount: a $250,000 principal pays 2.5 times these figures.
Frequently asked questions
How is an annuity payout calculated?
The payment that uses up a principal P over n periods at rate i per period is PMT = P × i ÷ [1 − (1 + i)^(−n)]. For payments at the start of each period divide by (1 + i). If a balance R should remain, use P − R ÷ (1 + i)^n in place of P.
How do I calculate the future value of an annuity?
FV = PMT × [(1 + i)^n − 1] ÷ i, plus P × (1 + i)^n for any starting amount. For an annuity due, multiply the payment part by (1 + i).
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period, like most loan payments. An annuity due pays at the start, like rent. An annuity due has a slightly lower payout from the same principal but each payment arrives earlier.
How much does a $250,000 annuity pay per month?
At 5% a year compounded monthly, $250,000 paid out over 20 years gives about $1,649.89 a month. Insurer quotes differ because they include life expectancy, fees and their own rates.
Does this calculator handle lifetime annuities?
No. It models a fixed-term annuity at a fixed rate. Lifetime annuities are priced by insurers using mortality tables, so ask a provider for a quote; you can use this tool to compare a quote with a simple fixed-term payout.
Is annuity income taxable?
It depends on the country and the type of account. In the US, the interest part of a non-qualified annuity is taxed as income and the return of your own principal is not. Check with a tax professional.