Currency: USD
Enter all amounts in USD. Changing currency keeps numbers unchanged; no exchange rate is applied.
- Periodic withdrawal
- $3,269.18
- Total withdrawals
- $784,603.76
How it works
Keep annual withdrawals comparable
When switching from monthly to quarterly payouts, change 1,000 per withdrawal to 3,000 to preserve the annual total. Otherwise the apparent improvement in duration mostly reflects withdrawing less money, not better timing.
Balancing withdrawals with account duration
An annuity payout estimate links an opening balance, assumed growth, and a withdrawal schedule. Use the duration mode when the payment is known, or the payment mode when a target duration is known. Check whether withdrawals occur at the beginning or end of each period. A constant-return account projection does not reproduce every feature or guarantee of an insurance annuity contract.
Withdrawal amount: formula and assumptions
Payment = balance×i/[1−(1+i)^−n].
This mathematical drawdown assumes fixed returns and ends at a zero balance. It is not an insurer's annuity quote.
How long will it last?: formula and assumptions
Solve balance = payment×[1−(1+i)^−n]/i for n.
Withdrawals are fixed and occur at month end. Returns are constant and exclude fees and tax.
Balance duration by payout frequency: formula and assumptions
Solve balance = withdrawal × present-value annuity factor, adjusted for beginning-period payments.
Uses an effective annual return converted to the selected period. Fractional duration represents the mathematical annuity identity; actual last withdrawals may be partial.
Worked example
Reference example currency: USD. These fixed examples do not change with your calculator preferences.
Using the Withdrawal amount example:
- Starting balance ($)
- 500000
- Annual effective return (%)
- 5
- Years
- 20
- Payments per year
- Monthly
- Payment timing
- End of period
Payment = balance×i/[1−(1+i)^−n].
Example result
Periodic withdrawal: $3,269.18
Total withdrawals: $784,603.76
These are illustrative inputs. Change the values to explore a different scenario.
Formula references
References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.
Common questions
Does this estimate a lifetime insurance annuity payment?
No. It models withdrawals from a balance. Insurer pricing, mortality, guarantees and contract fees are outside the calculation.
Why can the projected balance last longer at a higher return?
More assumed growth offsets withdrawals. Actual returns vary, so a constant-return result does not guarantee the balance will last that long.
Prepared by Finflo. See our methodology and editorial policy. Read the relevant professional-advice limitations.