QPRT Remainder Value
Model a QPRT remainder using caller-supplied property value, term, and discount rate.
Description
A retained-term discount model splits property value into a discounted term component and a remainder.
A retained-term discount model splits property value into a discounted term component and a remainder. This tool uses a simple discount formula rather than an actuarial QPRT valuation.1
Model a QPRT remainder using caller-supplied property value, term, and discount rate.
When to use QPRT Remainder Value
Use this tool to model a QPRT remainder using caller-supplied property value, term, and discount rate.
Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
How to use QPRT Remainder Value and understand its results
- Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
- Enter propertyValue, annualDiscountRatePercent, termYears using the field table and calculation rules, then run the tool.
- Read retainedTermValue, taxableRemainderValue, remainderPercent. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| propertyValue | Property value | number; minimum: 0 | Required |
| annualDiscountRatePercent | Annual discount rate (%) | number; minimum: 0 | Required |
| termYears | QPRT term (years) | integer; minimum: 0 | Required |
Enter nonnegative property value, discount rate and term. Return the discounted component labeled retainedTermValue, the difference labeled taxableRemainder and its percentage; zero property value gives zero percentage.
retained=propertyValue/(1+rate/100)^term; remainder=propertyValue−retained Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| retainedTermValue | Modeled retained term value | number; minimum: 0 |
| taxableRemainderValue | Modeled taxable remainder value | number; minimum: 0 |
| remainderPercent | Remainder percentage (%) | number; minimum: 0; maximum: 100 |
{
"input": {
"propertyValue": 1000,
"annualDiscountRatePercent": 10,
"termYears": 1
},
"output": {
"retainedTermValue": 909.090909090909,
"taxableRemainderValue": 90.90909090909099,
"remainderPercent": 9.090909090909099
}
}Limitations and assumptions
The labels describe this implementation’s model. Mortality, actuarial tables, retained-use valuation and legal gift-tax treatment are not implemented.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use GRAT Remainder Value: Model a GRAT taxable remainder from caller-supplied annuity and discount assumptions. For a complementary task, use CRUT–CLAT Comparison: Compare caller-supplied CRUT remainder and CLAT lead valuation factors.
References
-
QPRT Remainder Value — tool.io
Similar or alternative tools
- GRAT Remainder Value
Model a GRAT taxable remainder from caller-supplied annuity and discount assumptions.
- CRUT–CLAT Comparison
Compare caller-supplied CRUT remainder and CLAT lead valuation factors.