Charitable Remainder Trust Calculator

Calculate CRT annual payout, charitable deduction, and tax savings.
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yrs
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Annual Payout

$35,000.00

Charitable Deduction

$146,338.17

Tax Savings

$46,828.21

CRT Summary

Annual Payout to You$35,000.00
Total Payouts Over Term$525,000.00
Charitable Deduction (Year 1)$146,338.17
Income Tax Savings$46,828.21
Capital Gains Tax Avoided$47,600.00
Est. Remainder to Charity$322,082.24

Use the Charitable Remainder Trust Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This Charitable Remainder Trust (CRT) calculator estimates your annual income from the trust, the immediate charitable income tax deduction you may receive, and your potential tax savings. Understanding these figures is crucial for effective estate planning and maximizing your philanthropic impact while providing for your financial needs. This calculator incorporates projected 2026 tax law and economic assumptions to give you a more current estimate.

Our calculator uses the IRS Section 7520 interest rate (which we assume to be 5% for 2026 for illustrative purposes, as the actual rate varies monthly) and the applicable mortality tables to determine the present value of the remainder interest. This present value is then used to calculate your charitable deduction. The annual payout is determined by the trust's payout rate and the initial fair market value of the assets transferred.

A common mistake is underestimating the impact of the Section 7520 rate on the charitable deduction; a higher rate generally leads to a larger deduction. Remember that this calculator provides estimates, and actual results may vary based on market performance, actual IRS rates, and individual tax circumstances. Always consult with a qualified financial advisor and tax professional before making significant financial decisions regarding CRTs.

Example: Funding a CRT with Appreciated Stock

  1. 1 Sarah, age 65, wants to donate $1,000,000 in appreciated stock to her alma mater through a Charitable Remainder Annuity Trust (CRAT). She establishes a 5% annual payout rate for 20 years, with the remainder going to the university.
  2. 2 Using a projected 2026 Section 7520 rate of 5%, the present value of the remainder interest is calculated. The annual payout is fixed at 5% of the initial $1,000,000, which is $50,000 per year. The charitable deduction is derived from the present value of the remainder interest.
  3. 3 Based on these inputs, Sarah's estimated annual payout is $50,000. Her estimated charitable income tax deduction is approximately $350,000. Assuming a 32% marginal federal income tax bracket, her estimated immediate tax savings would be around $112,000.
  4. 4 This example demonstrates how a CRT can provide a stable income stream while generating a substantial upfront tax deduction and significant tax savings. The actual charitable deduction and tax savings will depend on the precise Section 7520 rate at the time of funding and Sarah's individual tax situation.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

What is a Charitable Remainder Trust?
A CRT is an irrevocable trust that pays you (or a beneficiary) income for life or a set period, then transfers the remaining assets to a charity. You receive an upfront partial charitable tax deduction and avoid capital gains on donated appreciated assets.
How much income does a CRT pay out?
CRTs must distribute at least 5% but no more than 50% of the trust value annually. A CRAT pays a fixed dollar amount, while a CRUT pays a fixed percentage of the annually revalued trust assets. Most CRTs are set at 5-8% payout rates.
What is the minimum amount for a CRT?
There is no legal minimum, but due to setup costs ($5,000-15,000 in legal fees) and ongoing administration expenses, CRTs generally make financial sense with at least $250,000-500,000 in assets. The present value of the charity remainder must be at least 10% of the initial funding.

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