Annuity Calculator

HELP © 2009 Vertex42 LLC

Withdrawal Plan $300,000 Balance

Starting Principal (P) 250,000.00
$250,000
Annual Interest Rate (i) 7.00%
Years to Pay Out (n) 30 $200,000 rate per period 7.000%
Payment Frequency Annually payments per year 1
Payment Type End of Period $150,000 type 0
Annual Inflation Rate (g) 2.00% inflation
$100,000 rate per period 2.000%

$50,000
Results
Initial Payout 16,403.20 $-
Final Payout 29,129.53
Payment Number
Total Interest Earned 415,446.12

Payout Schedule
Interest Payout Cumulative This
# Earned (Withdrawal) Balance Interest Thisannuity
annuitycalculator
calculatorisisbased
basedon ongeneral
general
finance
financetheory.
theory.ItItisisdesigned
designedto tosimulate
simulateaa
0 0.00 0.00 250,000.00 0.00 case
casewhere
whereaaperson
personmakes
makesregular
regular
1 17,500.00 16,403.20 251,096.80 17,500.00 withdrawals
withdrawalsfrom
froman anaccount
accountthat
thatisisearning
earning
2 17,576.78 16,731.26 251,942.32 35,076.78 interest.
interest. It also allows you to enteran
It also allows you to enter an
3 17,635.96 17,065.88 252,512.40 52,712.74 annual
annualinflation
inflationrate
rateto tosimulate
simulatethethecase
case
4 17,675.87 17,407.20 252,781.07 70,388.61 where
where the person increases the amountthat
the person increases the amount that
5 17,694.67 17,755.35 252,720.39 88,083.28 they
theywithdraw
withdraweach
eachperiod
period(to
(tokeep
keepup upwith
with
6 17,690.43 18,110.45 252,300.37 105,773.71 rising
risingexpenses
expensesforforexample).
example).
7 17,661.03 18,472.66 251,488.73 123,434.73
8 17,604.21 18,842.12 250,250.83 141,038.95 Taxes:
Taxes:ThisThisspreadsheet
spreadsheetdoes doesnot
notaccount
accountfor fortaxes.
taxes.
Iinterest
Iinterestisisassumed
assumedtotobe beearned
earnedtax
taxfree.
free.ToTogetget
9 17,517.56 19,218.96 248,549.43 158,556.50 around
aroundthat,
that,you
youcould
couldtrytryentering
enteringaatax-adjusted
tax-adjusted
10 17,398.46 19,603.34 246,344.55 175,954.96 interest
interest rate (e.g. if you're inaa25%
rate (e.g. if you're in 25%taxtaxbracket,
bracket,
11 17,244.12 19,995.40 243,593.27 193,199.08 subtract
subtract25%25%from
fromthe theexpected
expectedAnnual
AnnualInterest
InterestRate).
Rate).
Payouts
Payoutsrepresent
representpre-tax
pre-taxwithdrawals.
withdrawals.So,So,ififyou
youare
are
12 17,051.53 20,395.31 240,249.49 210,250.61 receiving
receivingpayments
paymentsfrom fromaaRoth
RothIRA,
IRA,you
youwouldn't
wouldn'tpay pay
13 16,817.46 20,803.22 236,263.73 227,068.08 tax,
tax,but
butififyou
youare
arereceiving
receivingpayments
paymentsfrom
fromaa
14 16,538.46 21,219.28 231,582.91 243,606.54 Traditional
TraditionalIRA,
IRA,you
youwould.
would.
15 16,210.80 21,643.67 226,150.05 259,817.34
16 15,830.50 22,076.54 219,904.01 275,647.84
TIP:
TIP:TryTryusing
usingExcel's
Excel'sbuilt-in
built-inGoal
GoalSeek
Seek
utility to answer the following question:
utility to answer the following question:
17 15,393.28 22,518.07 212,779.22 291,041.12
18 14,894.55 22,968.43 204,705.33 305,935.67
What
WhatdoesdoesthetheStarting
StartingPrincipal
Principalneed
need
19 14,329.37 23,427.80 195,606.90 320,265.04
to
to be if I want a payout of2000
be if I want a payout of 2000per
per
20 13,692.48 23,896.36 185,403.03 333,957.53
Month?
Month?
21 12,978.21 24,374.29 174,006.95 346,935.74
Set
Setcell:
cell:D15
D15
22 12,180.49 24,861.77 161,325.67 359,116.22 To
To value:2000
value: 2000
23 11,292.80 25,359.01 147,259.46 370,409.02 By
Bychanging:
changing:D6 D6
24 10,308.16 25,866.19 131,701.43 380,717.18
25 9,219.10 26,383.51 114,537.02 389,936.28
26 8,017.59 26,911.18 95,643.43 397,953.87
27 6,695.04 27,449.40 74,889.07 404,648.92
28 5,242.23 27,998.39 52,132.91 409,891.15
29 3,649.30 28,558.36 27,223.86 413,540.45
30 1,905.67 29,129.53 0.00 415,446.12

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 Basic Annuity Calculator
HELP © 2009 Vertex42 LLC

Annuity Payment Type Beginning of Period

Annual Inflation Rate (g) 2.000%
type 1

Solve for Annual PAYMENT Fixed Inflation-Adjusted

Starting Principal (P) 250,000.00
Annual Interest Rate (i) 6.000%
Years to Pay Out (n) 20
First Annual Payment 20,562.40 17,578.55
Last Annual Payment 20,562.40 25,608.63
First Monthly Payment 1,782.17 1,499.74
Last Monthly Payment 1,782.17 2,232.88

Solve for Starting PRINCIPAL Fixed Inflation-Adjusted

First Annual Payment 20,562.40
Annual Interest Rate (i) 6.000%
Years to Pay Out (n) 20
Starting PRINCIPAL 250,000.00 292,435.85

Solve for YEARS to PAY OUT Fixed Inflation-Adjusted

Starting Principal (P) 250,000.00
Annual Interest Rate (i) 6.000%
First Annual Payment 20,562.40
YEARS to PAY OUT 20.00 15.96

Caution: Results are only estimates. Please consult a qualified professional regarding financial decisions.

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