Stoke scored three in eight minutes, Mame Biram Diouf netting a brace and Jonathan Walters also on target.
Ex-Liverpool midfielder Charlie Adam made it 4-0 from 20 yards before Steven Nzonzi added the fifth from 25 yards.
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Gerrard got one back before substitute Peter Crouch headed Stoke's sixth.
This was no way for a player of Gerrard's stature to bow out.
The Los Angeles Galaxy-bound midfielder managed to mark his 710th and final appearance for the Reds with a 186th goal.
But the 34-year-old was badly let down by his team-mates who were out-classed and out-witted from start to finish.
Liverpool finish the season sixth in the table, enough to secure a Europa League third qualifying round spot.
But boss Brendan Rodgers, who dropped young forward Raheem Sterling to the bench after he turned down a new contract, clearly has his work cut out this summer to rebuild his team.
In contrast, Stoke end a productive campaign ninth in the table after a thumping win.
Mark Hughes's rampant side showed no mercy as they easily swept aside Liverpool in an astonishing first-half display.
Diouf opened the floodgates in the 22nd minute after Simon Mignolet parried Adam's powerful drive into the striker's path.
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It was 2-0 four minutes later, Diouf letting fly from the edge of the area after being afforded far too much time and space.
Liverpool looked shell-shocked when Walters made it 3-0 on the half hour after poor defending by Emre Can allowed the Stoke striker to pounce from close range despite Mignolet's best efforts.
The Reds were a shambles, Adam making it 4-0 after pouncing on a mistake by Lucas Leiva to power home from 20 yards.
It was Steven Nzonzi's who came up with the goal of the game, the French midfielder making it 5-0 from long distance on the stroke of half time.
Rodgers sent on Kolo Toure and Jordon Ibe in an effort to tighten up the defence at the start of the second half.
Gerrard did manage to mark his last game with a goal after a composed low finish.
But another Liverpool old boy restored Stoke's five-goal cushion as Peter Crouch headed home just five minutes after coming on as a substitute.
At the end, Gerrard could not wait to get off the pitch after a miserable farewell appearance.
Stoke City manager Mark Hughes:
"We couldn't have asked for a better finish to a really great season.
"The level of performance in that first 45 minutes was exceptional and I don't think it reflects badly on Liverpool. I think most teams would have struggled to cope with the quality and intensity of our play.
"It is a great performance against a very good team with great individual talents, and we have been able to get the level of performance that I think a lot of people sensed we were capable of.
"Everything came together and we showed what a good side we are."
Stoke v Liverpool minute by minute
Read reaction to the game here
Match ends, Stoke City 6, Liverpool 1.
Second Half ends, Stoke City 6, Liverpool 1.
Attempt missed. Adam Lallana (Liverpool) right footed shot from outside the box is close, but misses to the left. Assisted by Philippe Coutinho.
Foul by Philippe Coutinho (Liverpool).
Glenn Whelan (Stoke City) wins a free kick in the defensive half.
Foul by Jordan Henderson (Liverpool).
Erik Pieters (Stoke City) wins a free kick on the left wing.
Goal!  Stoke City 6, Liverpool 1. Peter Crouch (Stoke City) header from the centre of the box to the bottom left corner. Assisted by Mame Biram Diouf with a cross.
Attempt saved. Peter Odemwingie (Stoke City) left footed shot from outside the box is saved in the centre of the goal. Assisted by Charlie Adam.
Substitution, Stoke City. Peter Crouch replaces Marko Arnautovic.
Corner,  Stoke City. Conceded by Lucas Leiva.
Erik Pieters (Stoke City) is shown the yellow card for a bad foul.
Jordan Henderson (Liverpool) wins a free kick in the attacking half.
Foul by Erik Pieters (Stoke City).
Attempt missed. Philippe Coutinho (Liverpool) right footed shot from the left side of the box is too high. Assisted by Jordon Ibe following a corner.
Corner,  Liverpool. Conceded by Geoff Cameron.
Attempt saved. Philippe Coutinho (Liverpool) right footed shot from outside the box is saved in the centre of the goal. Assisted by Rickie Lambert.
Delay over. They are ready to continue.
Substitution, Stoke City. Marc Wilson replaces Marc Muniesa because of an injury.
Delay in match Marc Muniesa (Stoke City) because of an injury.
Goal!  Stoke City 5, Liverpool 1. Steven Gerrard (Liverpool) right footed shot from the centre of the box to the bottom left corner. Assisted by Rickie Lambert with a headed pass.
Substitution, Liverpool. Rickie Lambert replaces Joe Allen.
Attempt missed. Steven Gerrard (Liverpool) right footed shot from outside the box is close, but misses the top right corner. Assisted by Jordon Ibe.
Adam Lallana (Liverpool) wins a free kick on the right wing.
Foul by Marko Arnautovic (Stoke City).
Martin Skrtel (Liverpool) wins a free kick in the defensive half.
Foul by Ryan Shawcross (Stoke City).
Substitution, Stoke City. Peter Odemwingie replaces Jonathan Walters.
Corner,  Stoke City. Conceded by Jordan Henderson.
Attempt blocked. Marko Arnautovic (Stoke City) right footed shot from the centre of the box is blocked. Assisted by Mame Biram Diouf.
Attempt saved. Steven Gerrard (Liverpool) right footed shot from the right side of the box is saved in the bottom right corner. Assisted by Philippe Coutinho.
Corner,  Liverpool. Conceded by Asmir Begovic.
Attempt saved. Adam Lallana (Liverpool) left footed shot from the centre of the box is saved in the top centre of the goal. Assisted by Steven Gerrard.
Attempt blocked. Philippe Coutinho (Liverpool) right footed shot from outside the box is blocked. Assisted by Steven Gerrard.
Corner,  Liverpool. Conceded by Jonathan Walters.
Martin Skrtel (Liverpool) is shown the yellow card for a bad foul.
Foul by Martin Skrtel (Liverpool).
Mame Biram Diouf (Stoke City) wins a free kick on the right wing.
Corner,  Liverpool. Conceded by Asmir Begovic.
Attempt blocked. Jordan Henderson (Liverpool) right footed shot from outside the box is blocked. Assisted by Joe Allen.
Liverpool captain Steven Gerrard endured a nightmare send-off in his final game for the club as Stoke embarrassed the Reds with five first-half goals at the Britannia Stadium.