About

This calculator is designed to give a basic estimation of compounding interest using the data provided by you. It can not accurately reflect or predict your exact circumstances without requiring significant and specific additional data.

This app is provided for informational purposes only and does not constitute financial, tax or legal advice.

So, with this in mind, please use this calculator as a guide only and if needed, consult with a qualified and accredited financial advisor for a more accurate assessment of your financial forecast and investment options.

Calculation of Formulas (in basic terms)

COMPOUND INTEREST CALCULATION

Interest is calculated on a pro-rata basis. Withdrawals and deposits are applied at the end of the period.

TAX CALCULATION

If tax is enabled, tax is applied to interest earned over the taxable period (yearly or quarterly), less the annualised tax-free threshold. Anything above the tax-free threshold is applied at the flat percentage rate set by the user.

Any tax applied is removed at the end of the tax period if the period is not a full period. For example, if your calculations end half-way through a taxable period, tax will be removed (less the tax-free threshold) from the residual interest earned.

Note that the results are indicative only and are intended to give you a general example as to how much tax you might expect to pay at the flat tax rate you select. This is intended to give you a general overview of the impact of taxation on earnings and in no way constitutes tax advice. The actual tax payable by you will depend on your personal circumstances and, as such, you are responsible for ensuring by independent verification of its accuracy or completeness. Please refer to a qualified tax advisor for more detailed tax advice and an accurate assessment of your finances.

INFLATION CALCULATION

If inflation is enabled, the inflation rate is applied pro-rata to each withdrawal based on the previous withdrawal amount. For example, if you have set inflation at 2% yearly, and withdraw $1,000 yearly, the first year will withdraw $1,000, the next $1,020, the next $1,040.40 and so on.