Annuity Payout Calculator - Calculatorall.com
Use the annuity payout calculator for calculating the amount of annuity payout for a fixed length. Using the calculator allows you to find out how much you'll be able to draw from your annuity.
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How Annuities Work?
Basically, there are a couple of phases in life of an annuity. The first phase is referred to as accumulation phase while the other is called annuity payout phase.
In accumulation phase, the annuity is basically gathering funds. In this phase, you have to make deposits to your annuity and your preferable medium can be used for making these deposits. For instance, you can use cash by converting the values of your life insurance or you can also make 1035 exchange with another annuity. Following the rules of annuity, your earnings will be accumulated in the annuity on tax-deferred basis till the time you're ready for making withdrawals.
Slightly before you grow 60 years old, annuity payout phase can be started. You can withdraw these savings as lump-sum amount and no penalties will incur at this time. However, there will be major tax penalties against your savings and, therefore, you should avoid this method unless it becomes absolutely necessary for you to use it.
Another method that can be used for withdrawal is annuitization method that applies when you have to withdraw annuity payments for any given period of time. This option allows you to get the amount of annuity over defined time period that you choose yourself. It can be 10 years or 15 years or even 20 years. Even in case of your death during the specified period, insurance company continues to pay to the heirs until that period ends.
Another alternative for you, however, is to use systematic withdrawal schedule. This method allows you to opt for a certain amount which you'd like to get every month as well as the number which you'd propose to get. In case of payments running out, you won't be able to get any money however. Your insurance company can't guarantee that you'll outlive the payments. A handsome amount will be paid to you for a given period of time, but a point will come when these payments will stop.
This annuity payout calculator calculates the amount that you'll get in payments over specified time period. It is also possible for you to opt for monthly or annually payments. The annuity payout calculator can also factor in the rate of inflation to give you a rough idea as to what your annuity payout's worth will be as time goes on.
This is a simple annuity payout calculator that works for fixed length annuity payouts only. There are a few input values that you have to provide. These include the starting principal, years to payout, inflation rate, and the interest return / rate and payout frequency. Just hit the calculate button and the annuity payout calculator will give you the results for how much you'll be able to withdraw for each quarter and the amount of interest that will be earned during the period of the annuity. Finally, there is a table that shows you the beginning balance, ending balance and the interest earned during each period.
So, use this annuity payout calculator and find out what your annuity payout will look like for a given set of input values.