Annuity Payout Calculator
Finds the monthly income a lump sum can pay over a set period.
Result
- Monthly payout
- S$1,583.51
How to use the annuity payout calculator
- Enter the lump sum (S$).
- Enter the return (% a year).
- Enter the payout years.
- The results update as you type, or press Calculate.
- Read the monthly payout first, then the supporting figures below it.
Formula
Payout = P × r ÷ (1 − (1 + r)^−n).
Worked example
For example, with these inputs:
- Lump sum (S$): 300,000
- Return (% a year): 4
- Payout years: 25
the calculator returns:
- Monthly payout: S$1,583.51
Background
An emergency fund of three to six months of essential expenses protects you from having to borrow at high rates when something unexpected happens. Once that buffer is in place, extra savings can go towards longer-term goals and investments.
Calculators make it easy to compare scenarios side by side: a shorter tenure versus a lower instalment, a higher deposit versus more cash in hand, or paying down debt versus investing. Seeing the total cost, not just the monthly figure, usually makes the better choice obvious.
Frequently asked questions
How does the annuity payout calculator work?
It applies this formula: Payout = P × r ÷ (1 − (1 + r)^−n).
Is this financial advice?
No. It is a calculation tool. For decisions about loans or investments, compare official offer documents and consider speaking to a licensed adviser.