Annuity Payout Calculator
About Our Smart Annuity Payout Calculator
Our smart calculator provides instant results and leverages AI to offer personalized insights.
Turn Savings into a Paycheck
You've spent years building your nest egg. Now, it's time to turn it into a steady stream of income. This calculator simulates the Payout Phase of your annuity.
Solve the Retirement Puzzle:
- How Long? Enter your desired monthly income, and we'll tell you exactly when the money runs out.
- How Much? Enter your life expectancy (e.g., 25 years), and we'll calculate the maximum safe withdrawal.
What is the "Payout Phase"?
The Payout Phase (or Distribution Phase) is when you stop contributing to your annuity and start receiving payments. This is the moment your savings convert into income.
Unlike a standard savings account, an annuity continues to earn interest on the remaining balance even while you are withdrawing money. This extends the life of your fund significantly.
Which Calculation Mode Should I Use?
Mode 1: Fixed Length
The Question: "I want this money to last for exactly 20 years. How much can I take out each month?"
Best For: People who want to ensure they don't run out of money before a specific age (e.g., age 90). The calculator solves for the Payment Amount.
Mode 2: Fixed Payment
The Question: "I need $4,000/month to cover my bills. How long will my $500,000 last?"
Best For: Budget-conscious retirees who have fixed expenses. The calculator solves for the Duration (Time).
What is the "4% Rule" vs. Annuity Payouts?
You might have heard of the "4% Rule" for retirement withdrawals. Annuities often allow for higher withdrawal rates because the principal is systematically depleted to zero by the end of the term.
| Strategy | Annual Withdrawal (on $500k) | Risk Profile |
|---|---|---|
| 4% Rule (Standard) | $20,000 / year | Conservative Preserves principal for heirs. |
| 20-Year Annuity Payout | ~$40,000 / year | Aggressive Spends down principal to zero. |
* Key Takeaway: If you don't need to leave an inheritance, structuring your withdrawal as a "Fixed Length Payout" can double your annual income compared to living off interest alone.
AI-Driven Retirement Insights
Click "Get AI Advice" to analyze your withdrawal strategy:
- Depletion Alert: "You asked for $5,000/month. AI calculates your fund will run out in 9 years. Is that long enough?"
- Interest Rate Sensitivity: AI shows how a 1% increase in your return rate could add 5 extra years to your payout duration.
Disclaimer
This Annuity Payout Calculator assumes a constant rate of return and does not account for market volatility, inflation, or taxes. Withdrawals from non-qualified annuities are partially taxable. Withdrawals before age 59½ may incur penalties.
Disclaimer & Usage Policy
1. For Reference Only: The calculations, results, and AI-generated insights provided by this tool are for informational and educational purposes only. They represent theoretical outcomes based on user inputs and general assumptions. They do not constitute actionable professional advice, medical diagnosis, or specific financial recommendations.
2. Consult a Professional: Real-world scenarios are complex and subject to changing laws, regulations, and scientific standards. This tool cannot account for your unique individual circumstances. We strongly recommend consulting with a qualified professional (such as a Financial Advisor, CPA, Doctor, or Legal Counsel) before making any actual decisions based on this information.
3. No Liability: By using this tool, you acknowledge that This Website and its affiliates are not liable for any discrepancies, errors, or losses (financial, health-related, or otherwise) arising from the use of or reliance on these tools. You assume full responsibility for your own choices and actions.