Quick answer
A balance B paid out over n months at monthly rate i supports a payment of B·i ÷ (1 − (1 + i)^−n). $500,000 at 5% paid over 20 years pays $3,299.78 a month, $791,946.89 in total.
Enter the starting balance, annual return, payout years and payment timing. The calculator returns the monthly payout and the total paid. Use this annuity payout calculator to check your own figures.
Related tools: Annuity Calculator: Future and present value of a series of equal payments. Lottery Annuity Calculator: Cash value of an annuity-style prize with yearly increases.
How to use the Annuity Payout Calculator
- Enter starting balance ($) (above 0).
- Enter annual return (%) (between 0 and 100).
- Enter payout period (years) (between 0 and 100).
- Choose payments: At the end of each month and At the start of each month.
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Starting balance | A number, in $ | > 0 |
| Annual return | A number, in % | ≥ 0, ≤ 100 |
| Payout period | A number, in years | > 0, ≤ 100 |
| Payments | Choose one: At the end of each month; At the start of each month | Starts at At the end of each month |
Formula and method
Formula
payout = B·i ÷ (1 − (1 + i)^−n) (÷ (1 + i) if paid at the start), i = rate ÷ 12
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
The balance earns the stated return while paying out; insurer fees and mortality are not modeled.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Starting balance = 500000; Annual return = 5; Payout period = 20; Payments = At the end of each month.
| Result | Value |
|---|---|
| Monthly payout | $3,299.78 |
| Total paid out | $791,946.89 |
Example 2
Inputs: Starting balance = 500000; Annual return = 5; Payout period = 20; Payments = At the start of each month.
| Result | Value |
|---|---|
| Monthly payout | $3,286.09 |
| Total paid out | $788,660.80 |
Example 3
Inputs: Starting balance = 250000; Annual return = 0; Payout period = 10; Payments = At the end of each month.
| Result | Value |
|---|---|
| Monthly payout | $2,083.33 |
| Total paid out | $250,000.00 |
The first line is the headline result (monthly payout). Below it the annuity Payout Calculator lists total paid out, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
What the numbers say
The payments total $291,946.89 more than the balance because the remaining money earns 5% while it is paid out. The balance reaches exactly zero after 240 payments.
Assumptions
The return is fixed, which real investments are not. A 0% return divides the balance evenly. If you want payments to last indefinitely, withdraw only the return (5% of $500,000 is $25,000 a year). Taxes and inflation are not modelled.
How the result changes with starting balance
Holding every other input at the first worked example, this table changes only starting balance. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Starting balance | Monthly payout | Total paid out |
|---|---|---|
| 250000 | $1,649.89 | $395,973.44 |
| 500000 | $3,299.78 | $791,946.89 |
| 1000000 | $6,599.56 | $1,583,893.77 |
| 2000000 | $13,199.11 | $3,167,787.55 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Starting balance: entering "0" shows "Starting balance must be greater than 0." beside that field and no result.
- Payout period: entering "0" shows "Payout period must be greater than 0." beside that field and no result.
Choosing between the Annuity Payout Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Annuity Calculator](/finance/annuity-calculator/) | payment each period, annual rate and years | Future value |
| [Lottery Annuity Calculator](/finance/lottery-annuity/) | total annuity prize, number of yearly payments and yearly increase in payments | Estimated cash value |
| [Lottery Payout Calculator](/finance/mega-millions-payout/) | cash option of the jackpot, number of winning tickets sharing the prize and federal tax rate | After-tax payout per winner |
| [Present Value of Annuity Calculator](/finance/present-value-of-annuity/) | payment per period, rate per period and number of periods | Present value |
| [Future Value of Annuity Calculator](/finance/future-value-of-annuity/) | payment per period, rate per period and number of periods | Future value |
Background: personal finance estimates
Financial calculators project from the numbers you give them. Long-range tools depend on guesses about returns and tax rates that are unlikely to hold exactly, payoff tools assume a fixed payment and rate, and tax or salary results depend on the tax year, filing status and country. Official calculators say their output is for reference only.
For decisions that matter, use conservative inputs and check the figures against your lender, plan documents or a qualified adviser.
Assumptions and limitations
- 0% return divides the balance evenly
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for starting balance and payout period to confirm this.
Frequently asked questions
What if returns are lower?
Payments shrink or the money runs out sooner.
Do I pay at the start or end of the month?
Choose; payments at the start are slightly smaller.
Is this an insurance annuity quote?
No, it is a mathematical payout.
What does the Annuity Payout Calculator calculate?
Monthly payout that exhausts a balance over a set number of years. It returns Monthly payout and Total paid out.
What formula does the Annuity Payout Calculator use?
payout = B·i ÷ (1 − (1 + i)^−n) (÷ (1 + i) if paid at the start), i = rate ÷ 12. The balance earns the stated return while paying out; insurer fees and mortality are not modeled.
What do I need to enter in the annuity Payout Calculator?
You enter Starting balance ($), Annual return (%), Payout period (years) and Payments.
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. 0% return divides the balance evenly.
What does the “Payments” option change?
It sets how the annuity Payout is worked out. The choices are At the end of each month and At the start of each month.
What is an example of a annuity Payout result?
With starting balance 500000, annual return 5, payout period 20 and payments At the end of each month, the monthly payout is $3,299.78.
Can I rely on this calculator for a decision?
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser. For this calculator in particular: 0% return divides the balance evenly.
Related calculators
- Annuity Calculator — Future and present value of a series of equal payments.
- Lottery Annuity Calculator — Cash value of an annuity-style prize with yearly increases.
- Present Value of Annuity Calculator — Present value of equal payments at the end of each period.
- Future Value of Annuity Calculator — Future value of equal payments at the end of each period.
- Auto Loan Calculator — Monthly car payment after down payment and trade-in.
- Currency Calculator — Convert an amount using an exchange rate you enter.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.