Enter the annual contribution amount, annual interest rate, and total number of years until retirement into the calculator to determine the 403B payout.

## 403B Payout Formula

The following formula is used to calculate the 403B payout.

PV = PMT * ((1 - (1 + r)^{-n}) / r)

Variables:

- PV is the present value or the total amount in the 403B account at retirement ($) PMT is the annual contribution amount ($) r is the annual interest rate (decimal) n is the total number of years until retirement

To calculate the 403B payout, multiply the annual contribution amount by the result of 1 minus the annual interest rate plus 1 raised to the power of the negative total number of years until retirement. Divide this result by the annual interest rate.

## What is a 403B Payout?

A 403B payout refers to the distribution of funds from a 403B retirement plan, which is typically offered to employees of public schools, tax-exempt organizations, and certain ministers. The payout can occur upon retirement, termination of employment, or on a set schedule while still employed, depending on the plan’s rules. The amount received is usually taxable as ordinary income, although some may qualify for special tax treatment.