Skip to content
Finance Calculators

Annuity Payout Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
%
20 years
1 years40 years
Verified formula Private

Annual payout

₹87,185

Monthly payout
₹7,265

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Annuity Payout Calculator

The Annuity Payout Calculator works out your annual payout, along with 1 related figure in an instant. Enter annuity principal, annual interest rate and payout period and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the annuity principal.
  2. Enter the annual interest rate.
  3. Set the payout period.
  4. Read off your annual payout, together with monthly payout — the calculator updates automatically, with no button to press.

Formula

The Annuity Payout Calculator uses the formula:

Annual payout = Annuity principal × (Annual interest rate ÷ 100) ÷ (1 - (1 + Annual interest rate ÷ 100)^(-Payout period))

Worked example

For example, with annuity principal of ₹1,000,000, annual interest rate of 6% and payout period of 20 years, the annual payout is ₹87,185.

Inputs used
Annuity principal ₹1,000,000
Annual interest rate 6%
Payout period 20 years
Results
Annual payout ₹87,185
Monthly payout ₹7,265

Results are estimates for educational use, not professional advice.

Key terms explained

Interest rate
The percentage charged on a loan or paid on savings, usually quoted per year (per annum).
Principal
The original sum of money borrowed or invested, before any interest is added.

Frequently asked questions

It depends on the principal, rate and period. 10,00,000 at 6% over 20 years pays about 87,185 a year, drawing the balance down to zero.

It uses the annuity formula that spreads the principal plus interest into equal payments that exhaust the fund over the chosen period.

The fund is fully paid out by the final payment. For income that never runs out, use a perpetuity instead.

Only if the rate is fixed. Market-linked annuities vary, so treat variable-rate payouts as estimates.

Enter the annuity principal. Enter the annual interest rate. Set the payout period. Read off your annual payout, together with monthly payout — the calculator updates automatically, with no button to press.

Related calculators