Annuity calculators
Two calculators for a fixed income stream. One tells you what each payment would be given a lump sum, a rate and a term. The other works the opposite way — given a lump sum, a rate and a payment amount, how long the money lasts.
Two things to know before you rely on the numbers. Interest is calculated at the start of each period, which may not match how a particular product works. And the return you enter needs to already have fees and tax taken out — the calculator can't do that for you.
You have probably heard of annuities from another country, such as the United States. Annuities are not a popular product in New Zealand. Likely due to a few reasons - including our universal Super scheme and lack of demand. The closest product is the Lifetime income product but that is not a true annuity. Yes you receive a guaranteed income, but your capital is far from guaranteed. Your income is not adjusted for inflation either.
Nonetheless, some people still have pension schemes or some other money in annuity type products who may benefit from these calculators. Maybe even a loan you provided to someone who is paying you back on a regular schedule.
Fixed length annuity calculator
Do you have a lump sum amount of money at a fixed interest rate over a set period of time and wondering how much you will receive per payment period/installment? Then check out this calculator. Note, that the interest here is calculated at the beginning of each period, which may be different to your own investment. If your returns assumption doesn’t include any fees or tax, don’t forget to take those off your payments.
Fixed payment annuity calculator
Do you have a lump sum of money at a fixed interest rate and wondering how long you will receive payments for? Notice the difference from the calculator above. The previous fixed length annuity calculator providing you with how much you will receive. This fixed payment annuity calculator providing you with how long. Great for figuring out how long your savings or investment last for at any fixed rate of return. If your returns assumption doesn’t include any fees or tax, don’t forgot to deduct those from your return assumptions.
For personalised advice on your financial planning needs, then get in touch for a no obligations chat to see how I may be able to add value for you.
Related calculators
NZ Super calculator - your exact after-tax entitlement
Reverse mortgage calculator - the full cost of a reverse mortgage over a range of timeframes
Lifetime Home calculator - the full cost of the Lifetime Home income product and how it compares to a reverse mortgage