Topics › Pension from Capital
Pension from Capital
Determines the regular payout that a capital allows over a given term (full drawdown of 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·q^n / ((q^n − 1)/(q − 1))
How the formula works
The reverse pension question: from existing capital the payout is calculated that just uses it up over the term. Because the remaining capital keeps earning interest until the very end, the pension is higher than capital divided by months.
Annuity from present value, ending capital = 0.
Embed on your own website
iframe code›
Click the code to copy it to your clipboard.