Complete guide
Annuity payout calculator with payment timing and schedule
Enter a balance, fixed return, term, payment frequency and whether withdrawals occur at the beginning or end of each period. Calculator24 returns the level payment, total paid and annual balance schedule.
What the payout calculation models
The calculator treats the entered balance as the present value of a fixed series of withdrawals. It solves for the equal amount that brings the modeled balance to zero after the final period.
Payout formulas
The periodic rate is the annual percentage divided by payments per year, and the number of payments is years multiplied by frequency.
r=annual rate÷payments per yearn=years×payments per yearordinary payment=P×r/[1−(1+r)^−n]annuity-due payment=ordinary payment÷(1+r)Beginning versus end payments
An ordinary annuity pays after each period's interest. An annuity due pays at the beginning, so each payment arrives one period sooner and is smaller under the same positive-rate assumptions.
Worked payout scenario
A $250,000 balance, 20 years and monthly frequency create 240 payments. The schedule applies the selected timing and aggregates interest and ending balance by year.
An account model versus an annuity contract
Investor.gov describes annuities as contracts with insurers and notes fees, surrender charges and contract features. This arithmetic tool does not estimate a real product quote or insurer guarantee.
Scenario limits
A constant return makes the mathematics transparent but real investment returns can vary. Taxes, inflation, longevity and product terms can materially change the income available.
Timing comparison
| Type | Payment occurs | Interest before first payment |
|---|---|---|
| Ordinary annuity | End of each period | Yes |
| Annuity due | Beginning of each period | No |
Frequently asked questions
What happens at zero interest?
The starting balance is divided evenly across all payments.
Why is an annuity-due payment smaller?
Each withdrawal arrives one period earlier under a positive rate.
Is this an insurance annuity quote?
No. It is a fixed-balance time-value-of-money model.
Are taxes included?
No. Tax treatment depends on account and contract circumstances.
Can actual returns vary?
Yes. The calculator uses one constant scenario rate.
Does the schedule reach exactly zero?
The unrounded formula does; displayed rows can show small rounding differences.
What to keep in mind
This models a fixed account balance and constant return. It does not quote or value an insurance contract, guarantee income, include taxes or model insurer fees, mortality credits, surrender charges or variable returns.
Results display up to 8 decimal places; exported numbers preserve calculation precision. This is a calculation summary, not an official certificate.