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Financial Planning

Annuity Payment Calculator

Calculate the regular payment a lump sum can provide over a fixed period at a given interest rate (a payout annuity).

Your inputs

Results

Payment per period

$1,319.91

Total received
$316,778.75
Interest earned during payout
$116,778.75

✓Exact calculation — rounded only for display

Inputs are never added to links for financial, salary or health calculators.

What this calculator does

If you invest a lump sum and draw equal payments until it is exhausted, this tool shows how large each payment can be. It applies to annuities, structured settlements and planned drawdowns.

Formula and method

Payment = PV × i ÷ (1 − (1 + i)^−n), divided by (1 + i) for payments at the start of each period.

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Lump sum (present value): 200000 (any currency)
  • Annual interest rate: 5 %
  • Payout period: 20 years
  • Payment frequency: Monthly
  • Payments at: End of each period

Results

  • Payment per period: 1,319.91
  • Total received: 316,778.75
  • Interest earned during payout: 116,778.75

How to read the results

Interest earned during payout is the total received minus the lump sum.

Assumptions and limitations

  • Commercial annuity quotes include insurer pricing, mortality and fees, so actual offers differ.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

What is an annuity due?

An annuity whose payments are made at the beginning of each period, such as rent.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
4 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Because this calculator can involve personal financial or health details, your inputs are never added to share links or saved to history. Privacy policy