Annuity Calculator

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Withdrawal Plan 12
Balance
Starting Principal (P) 2,500,000.00
Annual Interest Rate (i) 7.00% 10
Years to Pay Out (n) 30 rate per period 0.583%
Payment Frequency Monthly 8 payments per year 12
Payment Type End of Period type 0
6
Annual Inflation Rate (g) inflation rate per period 0.000%
4
Results
2
Initial Payout 16,632.56
Final Payout 16,632.56 0 Payment Number
Total Interest Earned 3,487,722.46

Payout Schedule
Interest Payout Cumulative
This
Thisannuity
annuitycalculator
calculatorisisbased
basedon ongeneral
general
# Earned (Withdrawal) Balance Interest
finance
financetheory.
theory.ItItisisdesigned
designedto tosimulate
simulateaa
0 0.00 0.00 2,500,000.00 0.00
case
casewhere
whereaaperson
personmakes
makesregular
regular
1 14,583.33 16,632.56 2,497,950.77 14,583.33
withdrawals
withdrawalsfrom
froman anaccount
accountthat
thatisisearning
earning
2 14,571.38 16,632.56 2,495,889.59 29,154.71 interest.
interest. It also allows you to enteran
It also allows you to enter an
3 14,559.36 16,632.56 2,493,816.38 43,714.07 annual
annualinflation
inflationrate
rateto tosimulate
simulatethethecase
case
4 14,547.26 16,632.56 2,491,731.08 58,261.33 where
where the person increases the amountthat
the person increases the amount that
5 14,535.10 16,632.56 2,489,633.62 72,796.43 they
theywithdraw
withdraweach
eachperiod
period(to
(tokeep
keepup upwith
with
6 14,522.86 16,632.56 2,487,523.92 87,319.29 rising
risingexpenses
expensesforforexample).
example).
7 14,510.56 16,632.56 2,485,401.91 101,829.85
8 14,498.18 16,632.56 2,483,267.53 116,328.03 Taxes:
Taxes:ThisThisspreadsheet
spreadsheetdoesdoesnot
notaccount
accountforfortaxes.
taxes.
Iinterest
Iinterestisisassumed
assumedtotobe beearned
earnedtax
taxfree.
free.To
Toget
get
9 14,485.73 16,632.56 2,481,120.69 130,813.75
around
aroundthat,
that,you
youcould
couldtry
tryentering
enteringaatax-adjusted
tax-adjusted
10 14,473.20 16,632.56 2,478,961.33 145,286.96 interest
interest rate (e.g. if you're inaa25%
rate (e.g. if you're in 25%taxtaxbracket,
bracket,
11 14,460.61 16,632.56 2,476,789.38 159,747.56 subtract
subtract25%25%from
fromthetheexpected
expectedAnnual
AnnualInterest
InterestRate).
Rate).
Payouts
Payouts represent pre-tax withdrawals. So,ififyou
represent pre-tax withdrawals. So, youareare
12 14,447.94 16,632.56 2,474,604.75 174,195.50
receiving
receivingpayments
paymentsfrom fromaaRoth
RothIRA,
IRA,you
youwouldn't
wouldn'tpaypay
13 14,435.19 16,632.56 2,472,407.39 188,630.70 tax,
tax,but
butififyou
youare
arereceiving
receivingpayments
paymentsfromfromaa
14 14,422.38 16,632.56 2,470,197.20 203,053.07 Traditional
TraditionalIRA,
IRA,you
youwould.
would.
15 14,409.48 16,632.56 2,467,974.12 217,462.56
16 14,396.52 16,632.56 2,465,738.07 231,859.07 TIP:
TIP:TryTryusing
usingExcel's
Excel'sbuilt-in
built-inGoal
GoalSeek
Seek
17 14,383.47 16,632.56 2,463,488.98 246,242.55
utility to answer the following question:
utility to answer the following question:
18 14,370.35 16,632.56 2,461,226.77 260,612.90
What
WhatdoesdoesthetheStarting
StartingPrincipal
Principalneed
need
19 14,357.16 16,632.56 2,458,951.37 274,970.05
to
to be if I want a payout of2000
be if I want a payout of 2000per
per
20 14,343.88 16,632.56 2,456,662.69 289,313.94
Month?
Month?
21 14,330.53 16,632.56 2,454,360.66 303,644.47
Set
Setcell:
cell:D15
D15
22 14,317.10 16,632.56 2,452,045.20 317,961.57
To
To value:2000
value: 2000
23 14,303.60 16,632.56 2,449,716.24 332,265.17
By
Bychanging:
changing:D6 D6
24 14,290.01 16,632.56 2,447,373.68 346,555.18
25 14,276.35 16,632.56 2,445,017.47 360,831.53
26 14,262.60 16,632.56 2,442,647.51 375,094.13
27 14,248.78 16,632.56 2,440,263.72 389,342.91
28 14,234.87 16,632.56 2,437,866.03 403,577.78
29 14,220.89 16,632.56 2,435,454.35 417,798.66
30 14,206.82 16,632.56 2,433,028.61 432,005.48

http://www.vertex42.com/Calculators/annuity-calculator.html © 2009 Vertex42.com

 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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