Annuity Matrix Calculator

First, you may ask, "what is a 'matrix calculator'"? A matrix is a rectangular shape created by the intersection of a series of rows and columns. A "matrix calculator" calculates the results that populate the intersection of each row and column. If you look at the screen shot, what we mean will become clear to you.

By virtue of the matrix then, a matrix calculator calculates many results for a various range of inputs. Two inputs may change for any desired calculation. All of our matrix calculators will also give you the choice of what will be calculated.

The advantage a matrix calculator offers, of course, is the time savings in performing "what-if" calculations. Rather than use a single result calculator and keep changing the interest rate, for example, to find the various resulting regular withdrawal amounts, use the matrix calculator and have many withdrawal amounts calculated and visible at the same time with one click of the "Calc" button.

Specifically, with this annuity matrix calculator, the user may select having either various present values calculated for a specific regular withdrawal amount or have the various withdrawal amounts calculated that are possible for a specific present value amount. If the withdrawal amount is to be calculated, the user will enter the present value (amount available today), an initial assumed term and interest rate and their respective "step" values. The calculator will increase the interest rate along the top of the matrix and increase the term down the matrix and calculate the different withdrawal amounts possible as the content of the matrix.

Below are more details about this annuity matrix...

Present value (PV) calculation: A user wants to withdrawal a fixed amount periodically. How much money is required (the PV) to be able to withdrawal $500 every month for a minimum of 180 periods assuming a minimum rate of return of 4.0%? The matrix calculator lets the user set the Initial Annual Rate (expected rate of return) and the Initial Total Periods. Result: $67,596.07. The calculator continues with other scenarios. For example, the user learns that if the rate of return is 5.5% and he or she wants the withdrawals to last for 300 months then the required PV is $81,421.62.

Withdrawal amount calculation: A user has $1,000,000 to invest in an annuity. What is the monthly withdrawal at various interest rates and assuming various terms? The matrix calculator lets the user set the Initial Annual Rate (expected rate of return) and the Initial Total Periods. Assuming 180 withdrawals and a 5.0% return, the user can withdrawal $7,907.94. The calculator continues with other scenarios. For example, the user learns that if the rate of return is 6.5% and he or she wants the withdrawals to last for 300 months then the withdrawal amount is reduced to $6,752.07.

Note: A matrix can be completely customized and printed on one sheet of paper. It can then be carried with you and used as a handy reference tool.