Inputs
White themeFirst payment
$0.00
Before taxPayments per year
0
FrequencyTotal expected payments
0
CountTotal received (net)
$0.00
After taxImplied IRR (annual)
—
From cashflows
Summary: Values assume deterministic term. Real lifetime products require mortality tables and insurer terms.
| # | Date | Payment | Tax | Net | Interest | Principal | Balance | Cumulative Net | Cumulative PV |
|---|
Example scenarios
| Premium | APR | Term | Freq | Timing | Growth | Fees | Tax |
|---|---|---|---|---|---|---|---|
| $100,000 | 5% | 20 years | Monthly | Arrears | 0% | 2% | 10% |
| $250,000 | 4% | 15 years | Monthly | Due | 2% | 1% | 0% |
| $500,000 | 6% | 25 years | Quarterly | Arrears | 1% | 3% | 15% |
Formulas used
Let i be the effective rate per period and g the effective growth per period, with n payments.
Present value of a growing annuity (ordinary):
PV = P₁ · (1 - ((1+g)/(1+i))^n) / (i - g).
For an annuity-due multiply by (1+i).
When g = 0, level-payment formula reduces to
P = PV · i / (1 - (1+i)^{-n}) (ordinary), and multiply by (1+i) for due timing.
Taxes are applied to payments as: Net = Payment · (1 - tax).
Fees reduce the investable premium: PV_eff = PV · (1 - fee).
How to use
- Enter the lump sum, rates, frequency, term, and timing.
- Optionally set growth, fees, taxes, currency, and a start date.
- Click Compute to see schedule, KPIs, and charts.
- Export your schedule with Download CSV or Download PDF.
- Adjust inputs to compare scenarios and review totals and IRR.
FAQs
A contract that converts a lump sum into income that starts right away, typically within a month or year of purchase.
This file models fixed-term cashflows. Lifetime products require mortality assumptions and insurer-specific options not included here.
Payments can increase by a constant rate each period (COLA). The first payment is computed to match the chosen present value and discount rate.
When growth equals the discount, the standard formula is unstable. This tool uses the correct limiting case to keep results well-behaved.
IRR is the internal rate that sets net present value to zero, given your timing. It is a useful comparison metric across scenarios.