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About the Annuity Calculator
This annuity calculator computes the periodic payment from a fixed annuity based on your principal, interest rate, and term. You enter a few inputs and get the payment amount per period, the total paid out over the term, and the total interest earned.
The calculator applies the standard annuity payment formula PMT = PV x r / (1 - (1 + r)^-n), where PV is the present value, r is the periodic rate, and n is the number of payments. It needs the starting balance, the annual interest rate, the term in years, and the payment frequency. Pick a realistic rate assumption, since small changes move the payment noticeably. For large contracts, consider consulting a financial professional.
- Enter the starting balance or the lump sum you plan to convert into an annuity.
- Input the annual interest rate, the term in years, and the payment frequency.
- Review the payment per period, then adjust the rate or term to compare scenarios.