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Annuity Payout Calculator

Determine periodic withdrawal amounts, payout duration, and remaining balance depletion over time for fixed-length or fixed-payment annuities.

Actuarial Decumulation Model

Fixed Length Payout Parameters

Calculate periodic income payments for a fixed distribution time period.

$
%
yrs
⏱️ Fixed Length Payout 10 Years Horizon
Periodic Withdrawal Amount
$5,511 / period

Over 120 total payments across 10 years, you will receive a cumulative payout of $661,344, including +$161,344 in ongoing compound interest.

Distribution Composition 24.4% Interest Share
Principal: $500,000 Interest: +$161,344
Total Payouts
$661,344
Total Interest
+$161,344
Periods
120

Distribution Summary

Periodic Withdrawal Amount $5,511
Total Value of All Payments $661,344
Total Interest / Investment Return +$161,344

Balance Depletion Curve

Remaining annuity principal over the withdrawal schedule

Remaining Balance
$0 $165,000 $330,000 $500,000 Pd 1 Pd 40 Pd 80 Pd 120

Periodic Payout Schedule

Distribution schedule showing withdrawals, ongoing interest accrual, and remaining balance.

Period Starting Balance Payout Interest Earned Ending Balance
1 $500,000 $5,511 +$2,434 $496,923
2 $496,923 $5,511 +$2,419 $493,830
3 $493,830 $5,511 +$2,404 $490,723
4 $490,723 $5,511 +$2,389 $487,600
5 $487,600 $5,511 +$2,373 $484,462
6 $484,462 $5,511 +$2,358 $481,309
7 $481,309 $5,511 +$2,343 $478,141
8 $478,141 $5,511 +$2,327 $474,957
9 $474,957 $5,511 +$2,312 $471,758
10 $471,758 $5,511 +$2,296 $468,543
11 $468,543 $5,511 +$2,281 $465,312
12 $465,312 $5,511 +$2,265 $462,066
13 $462,066 $5,511 +$2,249 $458,804
14 $458,804 $5,511 +$2,233 $455,526
15 $455,526 $5,511 +$2,217 $452,232
16 $452,232 $5,511 +$2,201 $448,922
17 $448,922 $5,511 +$2,185 $445,596
18 $445,596 $5,511 +$2,169 $442,254
19 $442,254 $5,511 +$2,153 $438,895
20 $438,895 $5,511 +$2,136 $435,521
21 $435,521 $5,511 +$2,120 $432,129
22 $432,129 $5,511 +$2,103 $428,721
23 $428,721 $5,511 +$2,087 $425,297
24 $425,297 $5,511 +$2,070 $421,856
25 $421,856 $5,511 +$2,053 $418,398
26 $418,398 $5,511 +$2,037 $414,924
27 $414,924 $5,511 +$2,020 $411,432
28 $411,432 $5,511 +$2,003 $407,924
29 $407,924 $5,511 +$1,986 $404,398
30 $404,398 $5,511 +$1,968 $400,855
31 $400,855 $5,511 +$1,951 $397,295
32 $397,295 $5,511 +$1,934 $393,718
33 $393,718 $5,511 +$1,916 $390,123
34 $390,123 $5,511 +$1,899 $386,511
35 $386,511 $5,511 +$1,881 $382,881
36 $382,881 $5,511 +$1,864 $379,233
37 $379,233 $5,511 +$1,846 $375,568
38 $375,568 $5,511 +$1,828 $371,885
39 $371,885 $5,511 +$1,810 $368,184
40 $368,184 $5,511 +$1,792 $364,465
41 $364,465 $5,511 +$1,774 $360,728
42 $360,728 $5,511 +$1,756 $356,972
43 $356,972 $5,511 +$1,738 $353,199
44 $353,199 $5,511 +$1,719 $349,407
45 $349,407 $5,511 +$1,701 $345,596
46 $345,596 $5,511 +$1,682 $341,767
47 $341,767 $5,511 +$1,664 $337,920
48 $337,920 $5,511 +$1,645 $334,053
49 $334,053 $5,511 +$1,626 $330,168
50 $330,168 $5,511 +$1,607 $326,264
51 $326,264 $5,511 +$1,588 $322,341
52 $322,341 $5,511 +$1,569 $318,399
53 $318,399 $5,511 +$1,550 $314,437
54 $314,437 $5,511 +$1,531 $310,457
55 $310,457 $5,511 +$1,511 $306,457
56 $306,457 $5,511 +$1,492 $302,437
57 $302,437 $5,511 +$1,472 $298,398
58 $298,398 $5,511 +$1,452 $294,339
59 $294,339 $5,511 +$1,433 $290,261
60 $290,261 $5,511 +$1,413 $286,163
61 $286,163 $5,511 +$1,393 $282,044
62 $282,044 $5,511 +$1,373 $277,906
63 $277,906 $5,511 +$1,353 $273,748
64 $273,748 $5,511 +$1,332 $269,569
65 $269,569 $5,511 +$1,312 $265,370
66 $265,370 $5,511 +$1,292 $261,150
67 $261,150 $5,511 +$1,271 $256,910
68 $256,910 $5,511 +$1,251 $252,650
69 $252,650 $5,511 +$1,230 $248,368
70 $248,368 $5,511 +$1,209 $244,066
71 $244,066 $5,511 +$1,188 $239,743
72 $239,743 $5,511 +$1,167 $235,398
73 $235,398 $5,511 +$1,146 $231,033
74 $231,033 $5,511 +$1,125 $226,646
75 $226,646 $5,511 +$1,103 $222,238
76 $222,238 $5,511 +$1,082 $217,809
77 $217,809 $5,511 +$1,060 $213,358
78 $213,358 $5,511 +$1,039 $208,885
79 $208,885 $5,511 +$1,017 $204,391
80 $204,391 $5,511 +$995 $199,875
81 $199,875 $5,511 +$973 $195,336
82 $195,336 $5,511 +$951 $190,776
83 $190,776 $5,511 +$929 $186,193
84 $186,193 $5,511 +$906 $181,588
85 $181,588 $5,511 +$884 $176,961
86 $176,961 $5,511 +$861 $172,311
87 $172,311 $5,511 +$839 $167,639
88 $167,639 $5,511 +$816 $162,944
89 $162,944 $5,511 +$793 $158,225
90 $158,225 $5,511 +$770 $153,484
91 $153,484 $5,511 +$747 $148,720
92 $148,720 $5,511 +$724 $143,933
93 $143,933 $5,511 +$701 $139,122
94 $139,122 $5,511 +$677 $134,288
95 $134,288 $5,511 +$654 $129,431
96 $129,431 $5,511 +$630 $124,550
97 $124,550 $5,511 +$606 $119,645
98 $119,645 $5,511 +$582 $114,716
99 $114,716 $5,511 +$558 $109,763
100 $109,763 $5,511 +$534 $104,786
101 $104,786 $5,511 +$510 $99,785
102 $99,785 $5,511 +$486 $94,760
103 $94,760 $5,511 +$461 $89,710
104 $89,710 $5,511 +$437 $84,635
105 $84,635 $5,511 +$412 $79,536
106 $79,536 $5,511 +$387 $74,412
107 $74,412 $5,511 +$362 $69,263
108 $69,263 $5,511 +$337 $64,089
109 $64,089 $5,511 +$312 $58,889
110 $58,889 $5,511 +$287 $53,665
111 $53,665 $5,511 +$261 $48,415
112 $48,415 $5,511 +$236 $43,139
113 $43,139 $5,511 +$210 $37,838
114 $37,838 $5,511 +$184 $32,511
115 $32,511 $5,511 +$158 $27,158
116 $27,158 $5,511 +$132 $21,779
117 $21,779 $5,511 +$106 $16,374
118 $16,374 $5,511 +$80 $10,942
119 $10,942 $5,511 +$53 $5,485
120 $5,485 $5,511 +$27 $0

Understanding Annuity Payout Distributions

The payout phase—also known as the annuitization or distribution phase—is when accumulated principal and investment returns are converted into regular, predictable income streams. Whether structured through a Single Premium Immediate Annuity (SPIA) or systematic withdrawals from an accumulated nest egg, calculating sustainable payouts protects retirees from prematurely depleting their capital.

Fixed Period (Period Certain)

You select a designated time horizon (e.g., 10, 15, or 20 years). The insurer calculates an exact amortization payment that exhausts both principal and compounding interest precisely at the end of the term.

Fixed Payment (Systematic Withdrawal)

You choose your desired regular cash flow (e.g., $5,000/month). The calculator solves for the number of years and months your initial principal can sustain those withdrawals before reaching zero.

The Exclusion Ratio and Taxation of Annuity Payouts

For non-qualified annuities purchased with after-tax funds, each payment is split into two components under the IRS exclusion ratio:

  • Tax-Free Return of Principal: The portion representing your original non-deductible basis is returned to you free of federal and state income tax.
  • Ordinary Income (Earnings): The remaining interest and capital gains portion is subject to ordinary income tax rates (not lower long-term capital gains rates).

Frequently Asked Questions (FAQ)

What happens to an immediate annuity if I pass away early?

Under a "Straight Life" payout, payments cease upon death with no residual balance paid to heirs. However, choosing a "Life with Period Certain" (e.g., 10 or 20 years) or "Cash Refund" guarantees that if you die early, your named beneficiaries receive all remaining guaranteed payments or principal.

Can payout amounts increase to keep up with inflation?

Yes, insurers offer optional Cost-of-Living Adjustment (COLA) riders (typically 1% to 3% annual compound increases). Adding an inflation rider lowers your initial base monthly payment compared to a flat nominal payout.

Understanding your calculation

Method, example and limitations

How the calculation works

A fixed-period payout spreads an initial balance over the selected number of periods with an assumed return on the remaining funds.

Example to check

With zero return, a balance of 120,000 distributed equally over 120 months pays 1,000 per month.

Before using the result

A lifetime insurance payout uses additional mortality and contract assumptions. A modeled payout is not guaranteed and may not preserve purchasing power.

Calculation methodology · Report a result that needs review