Annuity Payout (Retirement Withdrawal) Calculator
Enter a starting balance, expected annual rate of return and payout period to calculate a sustainable fixed monthly withdrawal.
Annuity Payout (Retirement Withdrawal) Calculator
Calculate the fixed monthly payout a lump sum can sustain over a set number of years, assuming a given rate of return.
This is the reverse of a savings calculation: instead of building up a balance, it spends one down. Given a starting balance, a rate of return and a payout period, it computes the level monthly amount that exactly exhausts the balance by the end.
Example
- With the default values shown above, this calculator returns: Monthly Payout ≈ USD 2,639.18; Total Paid Out over the Period ≈ USD 791,755.26.
Frequently Asked Questions
What is this useful for?
This models a retirement drawdown: given a nest egg, an expected return and how many years it needs to last, it calculates the level monthly income you could withdraw so the balance reaches zero at the end of the period.
What if my rate of return is 0%?
With a 0% return, the calculator simply divides the starting balance evenly across all the months in the payout period.