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Annuity Calculator

Annuity Calculator

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Annuity Calculator

HELP © 2009 Vertex42 LLC
Withdrawal Plan
Starting Principal (P) 250,000.00
Annual Interest Rate (i) 7.00%
Years to Pay Out (n) 30 rate per period 7.000%
Payment Frequency Annually payments per year 1
Payment Type End of Period type 0
Annual Inflation Rate (g) 2.00% inflation rate per period 2.000%
Results
Initial Payout 16,403.20
Final Payout 29,129.53
Total Interest Earned 415,446.12
Payout Schedule
#
Interest
Earned
Payout
(Withdrawal) Balance
Cumulative
Interest
0 0.00 0.00 250,000.00 0.00
1 17,500.00 16,403.20 251,096.80 17,500.00
2 17,576.78 16,731.26 251,942.32 35,076.78
3 17,635.96 17,065.88 252,512.40 52,712.74
4 17,675.87 17,407.20 252,781.07 70,388.61
5 17,694.67 17,755.35 252,720.39 88,083.28
6 17,690.43 18,110.45 252,300.37 105,773.71
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
9 17,517.56 19,218.96 248,549.43 158,556.50
10 17,398.46 19,603.34 246,344.55 175,954.96
11 17,244.12 19,995.40 243,593.27 193,199.08
12 17,051.53 20,395.31 240,249.49 210,250.61
13 16,817.46 20,803.22 236,263.73 227,068.08
14 16,538.46 21,219.28 231,582.91 243,606.54
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
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
19 14,329.37 23,427.80 195,606.90 320,265.04
20 13,692.48 23,896.36 185,403.03 333,957.53
21 12,978.21 24,374.29 174,006.95 346,935.74
22 12,180.49 24,861.77 161,325.67 359,116.22
23 11,292.80 25,359.01 147,259.46 370,409.02
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
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Payment Number
Balance
This annuity calculator is based on general
finance theory. It is designed to simulate a
case where a person makes regular
withdrawals from an account that is earning
interest. It also allows you to enter an
annual inflation rate to simulate the case
where the person increases the amount
that they withdraw each period (to keep up
with rising expenses for example).

Taxes: This spreadsheet does not account for taxes.
Iinterest is assumed to be earned tax free. To get
around that, you could try entering a tax-adjusted
interest rate (e.g. if you're in a 25% tax bracket,
subtract 25% from the expected Annual Interest
Rate). Payouts represent pre-tax withdrawals. So, if
you are receiving payments from a Roth IRA, you
wouldn't pay tax, but if you are receiving payments
from a Traditional IRA, you would.

TIP: Try using Excel's built-in Goal Seek
utility to answer the following question:

What does the Starting Principal need
to be if I want a payout of 2000 per
Month?
Set cell: D15
To value: 2000
By changing: D6

http://www.vertex42.com/Calculators/annuity-calculator.html © 2009 Vertex42.com
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.
Basic Annuity Calculator
HELP © 2009 Vertex42 LLC
http://www.vertex42.com/Calculators/annuity-calculator.html

40 20. http://www.40 6.00 15.000% 20 20.608.782.562.com/Calculators/annuity-calculator.vertex42.435.63 1.40 20.74 2.000.578.17 1.00 Fixed 292.00 6.000% 1 Fixed Inflation-Adjusted Solve for Annual PAYMENT Starting Principal (P) Annual Interest Rate (i) Years to Pay Out (n) First Annual Payment Last Annual Payment First Monthly Payment Last Monthly Payment 250.85 Inflation-Adjusted Solve for YEARS to PAY OUT Starting Principal (P) Annual Interest Rate (i) First Annual Payment YEARS to PAY OUT 250.499.000.000.17 Fixed 17.782.562.Basic Annuity Calculator HELP Annuity Payment Type Annual Inflation Rate (g) type Beginning of Period © 2009 Vertex42 LLC 2.html .88 Inflation-Adjusted Solve for Starting PRINCIPAL First Annual Payment Annual Interest Rate (i) Years to Pay Out (n) Starting PRINCIPAL 20.562.96 Caution: Results are only estimates.55 25. Please consult a qualified professional regarding financial decisions.232.00 6.000% 20.000% 20 250.40 1.562.

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