Annuity Calculator

Use our free annuity calculator to estimate your periodic payments from an annuity investment. Enter your principal, expected return rate, and payout period to see your payment schedule and total returns.

Financial

Currency

Principal Investment

Annual Return Rate (%)

Payout Period (years)

years

Payment Frequency

Formula

Calculate the periodic payments from an annuity investment. See how much you will receive each period, your total payout over the term, and the total interest earned on your principal.

PMT = P × [r(1+r)^n] / [(1+r)^n - 1]

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter your principal investment amount.
2Input the expected annual return rate.
3Choose the payout period in years and payment frequency.
4The calculator determines your periodic payment amount.
5See your annual payout, total payout, and total interest earned.

Examples

$200,000 principal, 5% return, 20 year payout, monthly payments

1.Monthly rate = 5%/12 = 0.4167%
2.Total payments = 20 × 12 = 240
3.Monthly payment ≈ $1,320
4.Total payout = $1,320 × 240 = $316,800
5.Total interest = $316,800 - $200,000 = $116,800

Result: $1,320

Frequently Asked Questions

An annuity is a financial product that provides a series of payments in exchange for a lump sum investment. Fixed annuities guarantee a specific payment amount based on the principal, return rate, and payout period.

More frequent payments (monthly vs annual) result in smaller per-payment amounts but the same total payout. However, more frequent payments reduce the principal faster, slightly reducing total interest earned.

Annuity rates vary based on market conditions and the type of annuity. Fixed annuity rates typically range from 3-6%. Variable annuities offer market-linked returns but carry more risk.

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Annuity Basics

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

Annuity rates vary based on market conditions and the type of annuity. Fixed annuity rates typically range from 3-6%. Variable annuities offer market-linked returns but carry more risk.

Annuity Calculator

Formula

How It Works

Examples

$200,000 principal, 5% return, 20 year payout, monthly payments

Frequently Asked Questions

What is an annuity?

How does payment frequency affect my annuity?

What is a good annuity return rate?

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Annuity Calculator

Formula

How It Works

Examples

$200,000 principal, 5% return, 20 year payout, monthly payments

Frequently Asked Questions

What is an annuity?

How does payment frequency affect my annuity?

What is a good annuity return rate?

Related Calculators

Related Articles