Use this annuity payment calculator to calculate monthly or annual payout for your annuity when receiving payments for a fixed period of time. An annuity payment calculator is also referred to as an annuity payout calculator – the terms are interchangeable.
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- Annuity Payment Formula
- Annuity Payment Formula Usage
Annuity Payment Formula
The annuity payout formula is strikingly similar to the loan payment formula – well, exactly the same.
Pmt = (r * PV) / [1-(1 + r)n]
This formula will calculate the periodic payout of an annuity. An annuity is basically a series of payments received at regular intervals on future dates. This annuity payment formula only works for ordinary annuities. This formula assumes that the interest rate does not change and the payments remain constant for the duration of the payout periods.
This annuity formula can be used for any kind of amortized loan, lottery payouts and structured settlements.
Annuity Payment Formula Usage
This annuity payout formula is used when calculating the payout value of an ordinary annuity for a fixed rate.