Exclusion Ratio Calculator

Calculate Exclusion Ratio





Formula

The formula to calculate the Exclusion Ratio (ER) is:

\[ ER = \left( \frac{Investment}{Expected Return} \right) \times \left( \frac{1}{Life Expectancy} \right) \times 100\% \]

Where:

Definitions

Example

Let's say the Total Investment is $100,000, the Expected Return is $150,000, and the Life Expectancy is 20 years. Using the formula:

\[ ER = \left( \frac{100,000}{150,000} \right) \times \left( \frac{1}{20} \right) \times 100\% \]

We get:

\[ ER \approx 0.33\% \]

So, the Exclusion Ratio is approximately 0.33%.

Extended information about "Exclusion-Ratio-Calculator"

Exclusion Ratio Calculation in Annuities

Definition: The exclusion ratio in annuities determines the portion of each annuity payment that is excluded from taxable income.

Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)

Example: \( \text{Exclusion Ratio} = \frac{100000}{200000} \)

How to Calculate Exclusion Ratio on Annuity

Definition: The exclusion ratio on an annuity is used to determine the non-taxable portion of each annuity payment.

Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)

Example: \( \text{Exclusion Ratio} = \frac{150000}{300000} \)

Annuity Exclusion Ratio Calculation

Definition: This calculation determines the exclusion ratio for an annuity, which is the portion of each payment that is not subject to tax.

Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)

Example: \( \text{Exclusion Ratio} = \frac{200000}{400000} \)

Exclusion Ratio Annuity Formula

Definition: The exclusion ratio formula for annuities calculates the non-taxable portion of each payment.

Formula: \( \text{Exclusion Ratio} = \frac{\text{Investment in the Contract}}{\text{Expected Return}} \)

Example: \( \text{Exclusion Ratio} = \frac{250000}{500000} \)

Size Exclusion Coefficient Calculation

Definition: The size exclusion coefficient is used in chromatography to determine the separation of molecules based on size.

Formula: \( K = \frac{V_e - V_0}{V_t - V_0} \)

Example: \( K = \frac{30 - 10}{50 - 10} \)