The value of your investment can be affected by both taxes and inflation. Use this calculator to estimate their impact. Enter your information in the fields and then click on Calculate to see year-by-year and total effects of taxes and inflation on your investment. This calculator assumes that taxes are paid on investment earnings each year. Retirement plan earnings may be tax-deferred or, for qualified Roth account withdrawals, tax-free.

Amount currently invested:
Monthly contributions:
Years to invest:
Hypothetical annual rate of return:
Federal income tax rate:
State income tax rate:
Expected inflation rate:

Definitions

Amount currently invested
The amount you have invested at the start of the period.
Monthly contributions
The amount you will invest at the beginning of each month.
Years to invest
The number of years you plan to invest.
Hypothetical annual rate of return
The expected pretax annual return on your investments. Since 1926, the average annual total return for the S&P 500, an unmanaged index of large U.S. stocks, has been about 10%. Investments that offer the potential for higher rates of return also come with a higher degree of risk. Hypothetical rates of return are for illustrative purposes only and are not intended to portray actual results. Actual rates of return will vary over time. Past results are not predictive of results in future periods.
Federal income tax rate
The marginal federal tax rate you expect to pay on your earnings. Use the table below to estimate your current tax rate.
         
Filing status and income tax rates for 2024
This information is subject to change by the IRS.
Tax rate Married, filing jointly or qualified widow(er) Single Head of household Married, filing separately
10% $0–$23,200 $0–$11,600 $0–$16,550 $0–$11,600
12% $23,201–$94,300 $11,601–$47,150 $16,551–$63,100 $11,601–$47,150
22% $94,301–$201,050 $47,151–$100,525 $63,101–$100,500 $47,151–$100,525
24% $201,051–$383,900 $100,526–$191,950 $100,501–$191,950 $100,526–$191,950
32% $383,901–$487,450 $191,951–$243,725 $191,951–$243,700 $191,951–$243,725
35% $487,451–$731,200 $243,726–$609,350 $243,701–$609,350 $243,726–$365,600
37% $731,201
and over		 $609,351
and over		 $609,351
and over		 $365,601
and over
State income tax rate
The marginal state tax rate you expect to pay on your investment.
Expected inflation rate
What you expect for the average inflation rate. Over the past 50 years, the Consumer Price Index, a common measure of inflation, averaged about 4% a year.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.

All Capital Group trademarks are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

Use of this website is intended for U.S. residents only.

Capital Client Group, Inc.

The calculator deducts income taxes from earnings on an annual basis using the income tax rates that you specify. This will tend to understate the performance of the taxable account in circumstances where long-term capital gains and qualified dividends, which are currently taxed at lower rates than ordinary income, are a component of investment returns, as is the case for investments with significant equity holdings.

This calculator was developed by KJE Computer Solutions, which is not affiliated with American Funds. It is intended for use in making a rough estimate of the effects of taxes and inflation on your investments. We do not guarantee the accuracy of the results or their relevance to your particular circumstances. We encourage you to seek the assistance of your financial professional.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.

For more information regarding this calculator or its calculations, please e-mail KJE Computer Solutions at afquestions@dinkytown.net or visit http://www.dinkytown.net.