Forecast the spendable income and ending value produced by an invested gift. Choose a payout rate, expected return, tax rate on earnings, and forecast length to separate cash distributions from retained growth.
Annual net income = opening balance × payout rate × (1 − tax rate)
Each year the balance grows by the capital-growth rate after the payout is measured.
The main result is cumulative after-tax payout income across the forecast, while the ending balance shows retained wealth.
This is a planning estimate, not tax, legal, or investment advice. Actual treatment depends on jurisdiction, trust terms, holding periods, and individual circumstances.
A $150,000 gift with a 4% payout, 3% annual growth, 22% tax, and a 10-year forecast produces first-year after-tax income of $4,680. Under constant rates, cumulative net income is about $53,651 and the ending fund is about $201,587.
No. The payout rate determines cash income, while capital growth changes the remaining fund value.
No. It treats payout income as distributed cash rather than reinvested money.
Yes. A negative rate models a declining invested balance.
Payouts are calculated from each year's opening balance, which changes with capital growth.
No. The tool forecasts investment income and lets you enter an income-tax rate; it does not determine gift-tax eligibility.
| Input | Applied to |
|---|---|
| Payout rate | Each year's opening balance |
| Income tax | Annual payout only |
| Capital growth | Invested balance |