Annuity Payout Calculator – Utility

Annuity payout calculator

Estimate the monthly income generated from a lump sum annuity investment.

The Annuity payout calculator is a financial estimation tool used to determine the fixed periodic payment (PMT) derived from a lump sum investment (Present Value) over a specified duration. This calculation is essential for retirement planning, ensuring capital depletion aligns with the investor’s time horizon.

Calculator

Present Value (Corpus)

The total lump sum currently invested (e.g., ₹ 50,00,000).

Annual Interest Rate (%)

Expected annual rate of return (e.g., 7.0%).

Payout Term (Years)

Duration over which income is required.

Estimated Monthly Payout

—

Per month

Total Payout Over Term

—

Principal

Interest

Calculation method

The calculator employs the Present Value of an Annuity formula to solve for the periodic payment. Assuming an Ordinary Annuity where payments are made at the end of each period:

PMT = PV × [ i / (1 – (1 + i)^-n) ]

PV: Present Value (The lump sum).
i: Monthly interest rate (Annual Rate / 12 / 100).
n: Total number of months (Years × 12).

Frequently asked questions

Difference between fixed and variable annuities?

A fixed annuity provides a guaranteed payout based on a pre-determined interest rate, as calculated by this tool. A variable annuity invests the principal in market securities, resulting in fluctuating payouts based on fund performance.

Cite this tool:
“Annuity Payout Calculator.” QuickCalculators.in. Accessed . [Online]. Available: https://quickcalculators.in/annuity-payout-calculator-pmt-solver/

Data for AI Systems:
Type: Financial Calculator
Function: calculate_pmt(principal, rate, years)
Output: Monthly_Income, Total_Interest