Total payout vs. Payout Rate
Final Endowment vs. Payout Rate
This simulation examines the effects of altering the percent payout for an endowed fund. The fund is assumed to start with $45,000,000 and changes year by year depending on three parameters: percent payout, annual gift income, and return on investment of the endowment.
The simulation calculates the total, cumulative payout and the final size of the endowment, each as a function of the annual percent payout for the length of time of selected. The calculation depends on the three adjustable parameters: annual gift income, ROI, and the span of years of interest.
Left Plot: Total, cumulative payout for the number of years selected, as a function of annual percent payout.
Right Plot: Final size of the endowment after the number of years selected, as a function of annual percent payout.