LP Tools/Endowment Spending Calculator

Quick LP Calculator

Endowment Spending Calculator

Switch between spending-rate and annual-budget views without duplicating the calculation.

What does a 4.5% policy mean for a $3bn endowment—or what rate does a $135m budget imply?

Results

Endowment spending at a glance

Illustrative estimate based on the assumptions shown.

Annual spending budget

How it is calculated

Annual spending = endowment value × spending rate; implied rate = annual spending ÷ endowment value

This quick tool uses current value rather than the rolling-average asset base used by many endowment policies.

What this tells you

Read the result in context

One mode converts policy into a budget; the other checks what rate an existing budget implies. Both reconcile to the same retained capital.

Frequently asked questions

Why are there two modes?

One solves from a rate and the other solves from an annual spending amount.

Does this use a rolling average?

No. It uses the current endowment value entered.

How is retained capital calculated?

Current endowment value less the annual spending amount.

For educational and illustrative purposes only. This tool is not investment, legal, tax or accounting advice. Review actual fund documents and cash flows before making decisions.