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Savings, Taxes, and Inflation (Australian) |
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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.
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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 dependent on the type of investments you select. ASX 300 has returned an average of 10.64% annually since inception. Savings accounts at a bank pay as little as 1% 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 volatility. 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.
- Tax rate
- Your marginal tax rate.
- Other levies
- Any other levies you may be subject too, eg Medicare.
- Expected inflation rate
- The average rate of inflation you expect during this time frame.
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