Annuity Payout Calculator: Monthly Income From an Annuity
Work out the monthly payout from a fixed-period annuity — the steady income an annuity pays until its term ends.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly income | Total drawn | Growth while drawing |
|---|---|---|---|
| $250k · 4% · 20yr | $1,514.95 | $363,588.20 | $113,588.20 |
| $100k · 3.5% · 15yr | $714.88 | $128,678.86 | $28,678.86 |
| $500k · 5% · 25yr | $2,922.95 | $876,885.06 | $376,885.06 |
| $150k · 4.5% · 10yr | $1,554.58 | $186,549.14 | $36,549.14 |
How This Calculator Works
Enter the amount used to buy the annuity, the rate it credits, and the payout term. The calculator finds the fixed monthly payout that exhausts the annuity exactly at the end of the term, while the balance keeps earning the rate.
The Formula
Fixed-Period Drawdown
PV = savings pot, r = monthly rate (annual ÷ 12), n = number of monthly payments
Worked Example
A $250,000 annuity crediting 4% over a 20-year term pays about $1,515 a month. Across the term the payouts total roughly $363,600 — more than the purchase amount, because the balance earns as it pays out.
Key Insight
This models a period-certain annuity, which pays for a set number of years. A lifetime annuity instead pays until death and prices in longevity, so its monthly figure is set differently from the calculation here.
Frequently Asked Questions
What is a period-certain annuity?
It is an annuity that pays a fixed income for a set number of years and then stops. This calculator models that type, not a lifetime annuity.
How does it differ from a lifetime annuity?
A lifetime annuity pays until death, with the amount based on life expectancy. A period-certain annuity pays for a fixed term regardless of how long the holder lives.
What rate should I enter?
Use the rate the annuity contract credits. Fixed annuities state a rate; for an estimate, a rate near medium-term government yields is a reasonable starting point.
Why does total payout exceed the purchase amount?
The annuity's balance keeps earning the rate while it pays out, so the payments add up to more than the lump sum originally used to buy it.
Are annuity payouts taxed?
Often partly. The portion representing earnings is generally taxable, while the return of your original principal may not be. Tax treatment depends on the annuity type.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources. The starting values for annuity rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
The monthly payout is the fixed amount that exhausts the annuity over the chosen term, with the balance earning a steady rate. It models a period-certain annuity, not a lifetime annuity.
Written by Ugo Candido · Last updated May 17, 2026.