Annuity Calculator
Find the income a lump sum provides for a fixed term, or the lump sum needed to fund a target income.
Example values are shown — change any of them and the answer updates live.
$
%
years
NowPayout period
Principal needed
$279,162
6% · 20 years
A principal of $279,162 growing at 6% pays $2,000 per month for 20 years.
Monthly payout$2,000
Principal needed$279,162
Total payouts$480,000
Interest earned$200,838
Illustrative only — market returns are never guaranteed. Taxes and fees not included.
How the annuity is computed
Step 1 · Present value of the payout stream
PV = P × (1 − (1+r)⁻ⁿ) ÷ r
P=2,000, n=240
$279,162
Step 2 · Payout from a given principal
P = PV × r ÷ (1 − (1+r)⁻ⁿ)
PV=300,000, r=0.005
$2,000 / month
Estimates under the stated assumptions, for illustration — not financial advice.