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Perpetual Pension
Shows the permanent pension that can be drawn from interest alone, without touching the capital.
Type values, assign them with the value keys and press "Solve". It is the same financial calculator as under "Calculator" in the menu above.
Examples for this calculator
Each example is a story with explanation and a "what you learn" takeaway.
Formula
R = K0 · i_per or K0 = R / i_per
How the formula works
The perpetual pension uses only the interest: R = K₀·i. As long as you never withdraw more than the interest produces, the capital stays untouched and the pension flows indefinitely – rearranged, K₀ = R/i gives the capital needed for it.
Perpetual pension: interest withdrawal only, capital stays intact.
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