When to use this calculator
Find an equal monthly withdrawal that exhausts a balance over a chosen term. Assumes a constant return and a zero balance after the final withdrawal; no fees or tax.
Explore the savings & interest calculators for other questions in this topic. For a related calculation, use the Annuity Present Value Calculator: Discount a finite stream of equal end-of-period payments.
PUTTING IT INTO PRACTICE
Annuity Payout: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Starting balance | 12,000 |
| Nominal annual return (%) | 0 |
| Monthly withdrawals (integer) | 12 |
| Result | 1,000 per month |
- Check the input labels and enter the example values above.
- Apply the relationship: Withdrawal = balance × monthly rate/(1−(1+monthly rate)^−n).
- The result is 1,000 per month, rounded for display.
How to interpret your result
Assumes a constant return and a zero balance after the final withdrawal; no fees or tax.
Match the quoted rate to its compounding convention. A nominal rate, effective annual rate and continuous rate are not interchangeable. Contribution timing also matters when interest is included in a future-value model.
Frequently asked questions
Is a future savings value a forecast?
It is a scenario based on your entered rate and contributions. Changing rates, fees, tax or interrupted payments can change the actual outcome.
When is the annuity payout calculator useful?
Find an equal monthly withdrawal that exhausts a balance over a chosen term. Assumes a constant return and a zero balance after the final withdrawal; no fees or tax.
How do I use the annuity payout calculator?
Enter starting balance, nominal annual return (%), monthly withdrawals (integer). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Withdrawal = balance × monthly rate/(1−(1+monthly rate)^−n).
What should I check before using the result?
Assumes a constant return and a zero balance after the final withdrawal; no fees or tax.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
Further reading
For background on this topic, see OpenStax: compound interest ↗. This is a topic reference, not an external review or endorsement of this tool.
Calculators Map editorial process · Updated · Methods and limitations