Future income

Annuity Calculator

Calculate the periodic payment from a lump-sum ordinary annuity. Use this Retirement tool to enter your numbers, review the result, and understand the key assumptions before making the next decision.

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A focused calculator, clear explanation, common questions, and useful next tools.
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How this calculator works
The result depends on the numbers you enter and the assumptions shown below.

An ordinary annuity makes payments at the end of each period. The payment is calculated using the formula: PMT = PV × r(1+r)^n / ((1+r)^n − 1), where r is the periodic interest rate and n is the total number of periods.

Review the inputs carefully and treat the output as an estimate. For decisions involving money, taxes, health, law, or security, compare the result with trusted professional guidance when needed.

Frequently asked questions

What is an ordinary annuity?

An ordinary annuity makes payments at the end of each period (e.g., end of month). This differs from an annuity-due, which makes payments at the beginning of each period.

How does payment frequency affect the amount?

More frequent payments (monthly vs. annually) result in a lower amount per payment but the same total value over time, assuming the same interest rate applies proportionally.