Annuity Payout Calculator
By Santaji GadepatilinUpdated October 27, 2026
An annuity turns a lump sum into regular payments for a set period. The payout depends on the amount invested, the interest rate and the term. This free annuity payout calculator solves for whichever value you leave blank and shows the formula and steps.
How to use the annuity payout calculator
Enter the lump sum, the interest rate it earns and the payout period. You get the level monthly payout that uses up the money exactly over that time. To find the lump sum needed for a target income, press × on Lump sum.
Annuity payout formula
M = PV × i ÷ (1 − (1 + i)−n)
- PV = lump sum
- i = monthly rate (annual ÷ 12)
- n = number of monthly payments
This is the same maths as a loan EMI, seen from the lender’s side.
Monthly payout per 10,00,000 (or 1,000,000)
| Rate | 10 years | 15 years | 20 years | 25 years |
|---|---|---|---|---|
| 5% | 10,607 | 7,908 | 6,600 | 5,846 |
| 6% | 11,102 | 8,439 | 7,164 | 6,443 |
| 7% | 11,611 | 8,988 | 7,753 | 7,068 |
| 8% | 12,133 | 9,557 | 8,364 | 7,718 |
| 9% | 12,668 | 10,143 | 8,997 | 8,392 |
Fixed-term vs life annuity
| Fixed-term (this calculator) | Life annuity (insurer) | |
|---|---|---|
| Pays for | A set number of years | As long as you live |
| Money left at end | None | None (unless return-of-purchase option) |
| Longevity risk | You bear it | Insurer bears it |
| Flexibility | High | Low — usually irreversible |
SWP as an alternative
A systematic withdrawal plan from mutual funds works similarly but with market-linked returns and the option to change withdrawals.
Taxes
Annuity and interest income are usually taxable at your slab rate. Only the interest part of each payment is income; the rest is return of your own capital.
Frequently asked questions
How much monthly income does 50 lakh give?
At 7% for 20 years, about ₹38,765 a month, after which the money is fully used up.
Is this the same as an insurance annuity?
It is a fixed-term annuity that runs the money down to zero. Life annuities from insurers pay for life and use mortality tables, so their rates differ.
How much do I need for a given monthly income?
Press × on Lump sum and type the monthly payout you want.
Does the payout rise with inflation?
Not in this calculation. To keep up with inflation, start lower and increase withdrawals over time, or use a growing annuity.