What is this calculator?
Estimate a level payment from a starting balance and fixed return.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Estimate a level payment from a starting balance and fixed return.
How to use it
- Enter starting balance.
- Enter annual rate (%).
- Enter payout years.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
Payment = balance × monthly rate ÷ [1 − (1+monthly rate)^(-months)]
A fixed payout is calculated so the assumed return and remaining balance cover the entered payout period.
Worked example
Starting balance: 1000000, Annual rate (%): 5, Payout years: 20. The result is 6,599.55739217 (monthly payout).
Assumptions and limits
End-of-month payments. Fees, tax and longevity guarantees excluded.
Frequently asked questions
What inputs does the Annuity Payout Calculator need?
Use starting balance, annual rate (%), payout years. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the Annuity Payout Calculator?
End-of-month payments. Fees, tax and longevity guarantees excluded.