Annuity Calculator

http://www.vertex42.com/Calculators/annuity-calculator.html

2009 Vertex42 LLC

Withdrawal Plan
250,000.00
7.00%
30
Annually
End of Period

2.00%

$250,000

rate per period

payments per year
$150,000
type

7.000%
1
0

inflation
$100,000

2.000%

$200,000

rate per period

$50,000

Results
Initial Payout
Final Payout
Total Interest Earned

Payout Schedule

Balance

$300,000

Starting Principal (P)

Annual Interest Rate (i)
Years to Pay Out (n)
Payment Frequency
Payment Type
Annual Inflation Rate (g)

16,403.20
29,129.53
415,446.12

$1

9 11 13 15 17 19 21 23 25 27 29

Payment Number

Interest
Earned

Payout
(Withdrawal)

Balance

Cumulative
Interest

0.00

0.00

250,000.00

0.00

17,500.00

16,403.20

251,096.80

17,500.00

17,576.78

16,731.26

251,942.32

35,076.78

17,635.96

17,065.88

252,512.40

52,712.74

17,675.87

17,407.20

252,781.07

70,388.61

17,694.67

17,755.35

252,720.39

88,083.28

17,690.43

18,110.45

252,300.37

105,773.71

17,661.03

18,472.66

251,488.73

123,434.73

17,604.21

18,842.12

250,250.83

141,038.95

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

http://www.vertex42.com/Calculators/annuity-calculator.html

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

2009 Vertex42.com

Basic Annuity Calculator

HELP

2009 Vertex42 LLC

Annuity Payment Type

Beginning of Period

Annual Inflation Rate (g)

2.000%

type

Solve for Annual PAYMENT

Starting Principal (P)

Fixed

250,000.00

Annual Interest Rate (i)

Years to Pay Out (n)

Inflation-Adjusted

6.000%
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

First Annual Payment

Fixed

20,562.40

Annual Interest Rate (i)

Years to Pay Out (n)
Starting PRINCIPAL

Solve for YEARS to PAY OUT

Starting Principal (P)
Annual Interest Rate (i)
First Annual Payment
YEARS to PAY OUT

Inflation-Adjusted

6.000%
20
250,000.00
Fixed

292,435.85
Inflation-Adjusted

250,000.00
6.000%
20,562.40
20.00

15.96

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

http://www.vertex42.com/Calculators/annuity-calculator.html