Annuity Payout Calculator
See the steady monthly income a lump sum can pay out over a chosen number of years at a given return — the core retirement drawdown question.
Monthly income
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Total paid out —
Growth earned during payout —
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How it works
Payout = P·i/(1 − (1+i)⁻ⁿ), i = rate/12Frequently Asked Questions
How much monthly income can $500,000 provide?
Spread over 25 years at 5%, about $2,920/month before tax. Longer horizons or lower returns reduce it; the calculator shows the exact trade-off instantly.
What is the 4% rule and how does it compare?
The 4% rule withdraws 4% of the starting balance yearly (inflation-adjusted) with the goal of lasting 30 years. An amortized payout like this one spends principal to zero by design, so it pays more per month but ends at the horizon.
Does this account for inflation?
The payout is level in nominal dollars. To keep purchasing power roughly constant, use a return net of inflation (e.g. 2.5% instead of 5%) and read the result as today's dollars.