Annuity Payout Calculator
See how long your nest egg lasts with steady withdrawals based on return, timeline, and payout frequency.
The balance you have invested at the start.
Expected average annual return on the invested funds.
How many years you want the withdrawals to last.
How often you want to receive payments from the annuity.
You can withdraw $5,511 monthly.
People always live forever when there is an annuity to be paid them.
About this calculator
This calculator models a level-payment annuity-style drawdown. It uses your starting principal, expected return, payout timeline, and payment frequency to estimate a steady payout that brings the balance to zero at the end of the timeline.
This is a planning model, not a guaranteed product illustration. Use it to compare timelines and assumptions, and to understand the tradeoffs between income and longevity.
What each input means
- Starting principal is the amount of money you’re drawing from.
- Expected return is the annual return assumption used to model interest earned while payouts occur.
- Years to payout is how long you want the income stream to last.
- Payout frequency is how often you receive payments (monthly, quarterly, annually, etc.).
How annuity payouts work
Your payout is determined by four inputs: starting principal, expected return, payout duration, and payment frequency.
All else equal, longer timelines generally reduce the payout amount, while higher expected returns generally increase it.
This calculator assumes returns continue while payouts occur and solves for a steady payment that ends with a near-zero balance on schedule.
Interest vs principal over time
Each payout is funded by a combination of interest earned during the period and principal withdrawn from the remaining balance.
Early in the schedule, payouts often rely more heavily on principal because the remaining balance is still large and the timeline is long.
Over time, the chart helps you see the remaining balance, cumulative interest earned, and total payouts side by side.
When this calculator is useful
- Retirement income planning – Estimate steady income from a fixed pool of capital.
- Comparing drawdown timelines – See how a 15-year plan differs from a 25-year plan.
- Stress-testing assumptions – Compare conservative and optimistic return scenarios.
- Understanding tradeoffs – Make the payout-size vs. duration relationship easier to see.