Annuity Payout Calculator

Estimate your **monthly annuity payout** based on investment amount, interest rate, and payout period.

Estimated Monthly Payout: $

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Annuity Payout Calculator - A Complete Guide

An **Annuity Payout Calculator** helps estimate the amount you will receive in monthly payments based on **investment, interest rate, and payout period**.

How Annuity Payments Are Calculated?

Annuities use a formula that considers the **initial investment, interest rate, and length of payout period**:

Payout = Investment × (r / (1 - (1 + r)⁻ⁿ))

Where:

• **r** = Monthly interest rate (**annual rate / 12**)
• **n** = Total number of payments (**years × 12**)

Example Calculations

Example 1: An initial investment of **$100,000**, an annual interest rate of **5%**, and a payout period of **20 years**.

**Step 1:** Monthly interest rate = **5% ÷ 12 = 0.004167**

**Step 2:** Total months = **20 × 12 = 240**

**Step 3:** Applying the annuity formula, **Monthly Payout = $659.96**

Example 2: An initial investment of **$200,000**, an annual interest rate of **4%**, and a payout period of **25 years**.

**Step 1:** Monthly interest rate = **4% ÷ 12 = 0.003333**

**Step 2:** Total months = **25 × 12 = 300**

**Step 3:** Applying the annuity formula, **Monthly Payout = $1,055.55**

Types of Annuities

• **Fixed Annuities:** Pay a guaranteed amount each month.
• **Variable Annuities:** Payments vary based on investment performance.
• **Immediate Annuities:** Begin payouts right away.
• **Deferred Annuities:** Accumulate value before payouts begin.

Why Use an Annuity Payout Calculator?

• Helps **plan retirement income** efficiently.
• Determines how much **you need to invest** for a comfortable retirement.
• Allows comparison of **different payout options**.

Use this **Annuity Payout Calculator** to make informed financial decisions for your retirement planning.