Annuity Payment Calculator

Calculate your annuity payments, future value, and investment growth

Annuity Information

Currency

Annuity Type

Principal Amount

Payment Amount (for FV calc)

Annual Interest Rate (%)

Number of Years

Compounding Periods Per Year

Payment Frequency

Annuity Results

Periodic Payment

Payment amount per period

Total Payments

Sum of all payments

Future Value

Value at end of term

Annuity Details

Detail	Value
Principal Amount	-
Interest Rate (APR)	-
Effective Annual Rate	-
Number of Years	-
Compounding Periods	-
Payment Frequency	-
Total Interest Earned	-

Payment Schedule (First 12 Periods)

Period	Payment	Interest	Principal	Balance

Annuity Information

Benefits of Annuities

• Guaranteed income stream for life

• Tax-deferred growth (for qualified annuities)

• Protection against outliving your savings

• Flexible payout options

• Potential for higher returns than CDs

• Customizable with riders

Annuity Considerations

• Fees can be high compared to other investments

• Limited liquidity (surrender charges may apply)

• Inflation risk with fixed annuities

• Complexity of some annuity products

• Potential surrender periods (5-10 years)

• Not FDIC insured

An Annuity Payment Calculator helps investors and retirees estimate regular payouts from an annuity investment, either for a fixed period or for life. It calculates how much you can expect to receive periodically based on your principal, interest rate, and payout schedule.

How an Annuity Payment Calculator Works

The calculator uses the time value of money (TVM) concept to determine annuity payments. There are two main types:

1. Ordinary Annuity (Payments at End of Period)

P M T = \frac{P \times r \times (1 + r)^{n}}{(1 + r)^{n} - 1}

2. Annuity Due (Payments at Beginning of Period)

P M T = \frac{P \times r \times (1 + r)^{n}}{(1 + r)^{n} - 1} \times \frac{1}{1 + r}

Where:

PMT = Periodic annuity payment
P = Principal (initial investment)
r = Periodic interest rate (annual rate ÷ number of periods per year)
n = Total number of payments

Key Inputs Required

Principal (P) – Initial lump-sum investment.
Interest Rate (r) – Annual rate of return (fixed or variable).
Payout Frequency – Monthly, quarterly, semi-annually, or annually.
Annuity Term (n) – Duration in years (or lifetime for lifetime annuities).
Type of Annuity – Ordinary (end of period) or Annuity Due (beginning of period).

Outputs Provided by the Calculator

Periodic Payout (PMT) – Amount received per payment period.
Total Payout Over Term – Sum of all payments.
Interest Earned – Total return on investment.
Amortization Schedule – Breakdown of principal vs. interest in each payment.

Example Calculation (Ordinary Annuity)

Input	Value
Principal (P)	$100,000
Annual Interest Rate	5%
Payout Frequency	Monthly
Annuity Term	20 years
Calculations	Results
Monthly Payout (PMT)	$659.96
Total Payout	$158,390.40
Interest Earned	$58,390.40

Types of Annuities Supported

Fixed Annuity – Guaranteed payouts at a fixed interest rate.
Variable Annuity – Payments vary based on investment performance.
Immediate Annuity – Payouts start immediately after investment.
Deferred Annuity – Payouts begin after an accumulation phase.
Lifetime Annuity – Payments continue for life (actuarial calculations apply).

When Should You Use an Annuity Payment Calculator?

Retirement Planning – Estimate steady income from savings.
Pension Buyout Decisions – Compare lump-sum vs. annuity options.
Structured Settlements – Determine periodic payments from legal settlements.
Insurance Planning – Evaluate fixed annuity contracts.

Limitations of Annuity Calculators

Assumes Fixed Rates – Variable annuities depend on market performance.
Doesn’t Include Fees – Some annuities have high management fees.
Inflation Risk – Fixed payments may lose purchasing power over time.

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