Calculate sustainable periodic withdrawals from an annuity or payout fund.
Overview
Annuity payout planning converts accumulated capital into predictable income.
This calculator estimates periodic withdrawals that exhaust or preserve value by term.
Payout size depends heavily on return assumption and payout length.
Conservative rates improve sustainability in uncertain markets.
Steps
Input current value available for payout.
Use realistic annual growth assumption during payout.
Choose number of years or periods.
Monthly or annual payout schedule.
Review estimated periodic income.
Math
PMT = PV × [r / (1 - (1+r)^-n)]
Annuity formula computes fixed payment that depletes present value across n periods at rate r.
Worked cases
Solve PMT with annualized assumptions and monthly frequency.
Monthly payout estimate supports retirement cash-flow planning.
Increase n and recalculate.
Longer term reduces periodic payout size.
Reduce periodic growth assumption.
Sustainable payout decreases under conservative returns.
Why use this
Questions