Turn a lump sum into a monthly income: enter what you have, how long it must last and the growth rate, and get the payout — with or without growth.
Payments at the beginning of each period are slightly smaller, because the first payment is made immediately — the annuity-due adjustment.
This is the payout phase — spending a lump sum down. The Annuity Calculator covers the saving phase (growing payments into a lump sum).
Monthly payout
—How to use this tool
The amount available at the start of the payout phase.
In years — the fund is spent down to zero over this period.
Use 0% to see the simple split, or a realistic return for money still invested while it pays out.
Per-payment amount, total paid out, and how much of it came from growth.
Formula & worked example
$100,000 paid over 10 years monthly at 5% annual growth: r = 0.05 ÷ 12, n = 120, payment = $1,060.66 per month, $127,279 total — $27,279 of it growth. At 0% growth the same fund pays $833.33 per month and $100,000 total.
Limitations — read this before you rely on it
This assumes a fixed rate, level payments and the fund running exactly to zero — real annuities include fees, taxes, inflation and, for lifetime annuities, mortality pooling, so a quoted annuity will differ. Growth during payout is not guaranteed.
Frequently asked questions
No — that one covers the saving phase (payments growing into a lump sum). This one covers the payout phase (a lump sum spent down into payments).
Money left in the fund keeps earning while it pays out, so the same lump sum stretches further — $27,279 further in the example above.
Payments at the beginning of each period instead of the end. Because the first payment is immediate, each payment is slightly smaller for the same lump sum.
Not with this calculator — a fixed term is assumed. Lifetime annuities are priced by insurers using life expectancy and pool risk across many people.
No. Tax on annuity income depends on your jurisdiction and the annuity type; treat these as gross figures.