If there were no taxes and inflation in the economy, you could earn a lot more. Taxes charged on your savings directly affect your earnings whereas inflation reduces your earnings indirectly by reducing the purchasing power of the money. This calculator will highlight both the situation so that you can understand the significance of taxes and inflation rate on your savings and investments.
Number of years you have planned to save.
Amount of dollar you will put into the account at the beginning of each month.
Amount currently invested
Total amount you have already invested on the account.
Expected rate of return
The anticipated rate of return on the savings. This rate can vary significantly from the actual rate over the long-term.
Federal tax rate
Marginal federal rate of tax on your savings.
State tax rate
Appropriate marginal state tax rate for you.
Expected inflation rate
Your expected average rate of inflation over the long-term.