Savings, Taxes and Inflation

The value of your savings can be affected by both inflation and taxes. Use this calculator to determine how much your savings will be worth with these two important variables in mind. Click the "View Report" button to get more information and a year-by-year savings schedule.

This Financial Calculator requires a Browser with Java Support

Definitions

Amount currently saved
Total you have saved to date to be included in this analysis.

Savings per month
The amount you will contribute each month to your savings. This calculator assumes that you make your contribution at the beginning of each month.

Years to save
The number of years you have to save.

Annual rate of return
This is the annually compounded rate of return you expect from your investments before taxes. The actual rate of return is largely dependant on the type of investments you select. For example, from January 1970 to February 2003 the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11%. Savings accounts at a bank pay as little as 2% or less.  It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volitility.  The actual rate of return on investments can vary widely over time, especially for long-term investments.  This includes the potential loss of principal on your investment.

Federal tax rate
Your marginal federal tax rate.

State tax rate
Your marginal state tax rate.

Expected inflation rate
What you expect for the average long-term inflation rate.