Annuity Calculator
Calculate the sustainable income from a principal or the future value of an annuity. Supports ordinary annuities, annuities due, and any payout frequency.
Annuity details
Sustainable payment
$2,922.95
- Principal
- $500,000.00
- Payment per period
- $2,922.95
- Total income
- $876,885.06
- Total interest
- $376,885.06
Frequently Asked Questions about the Annuity Calculator
What is an annuity?
An annuity is a series of equal payments at fixed intervals. Examples include retirement payouts, mortgage payments, and bond coupons. The calculator handles both the future-value and the income-stream views.
How do I calculate sustainable income from a principal?
Use the income mode. The calculator splits your principal into equal periodic payments over the chosen years, including interest earned on the remaining balance. This is the same math as a loan amortization payment.
What is the difference between income mode and future mode?
Income mode treats the principal as a starting balance to draw from and asks how much you can take each period. Future mode treats the principal plus ongoing contributions and projects an ending balance.
Does the calculator account for taxes?
No. It works in pre-tax dollars. Real-world annuity income and investment returns may be reduced by income or capital-gains taxes depending on the account type. Plan with your tax situation in mind.
What happens at a 0% rate?
With no growth or interest, the math collapses to simple division: payment equals principal divided by total periods, and future value equals principal plus all contributions. The calculator handles this case explicitly.