How will taxes and inflation affect my savings?
Inputs Next Steps

Amount you have deposited
$
Years saved
Your savings rate
%
Your federal tax rate
%
Your state tax rate
%
Inflation rate
%

This tool calculates the effect of inflation and income taxes on your savings plan. You enter how much you currently have saved, number of years to invest, and a savings interest rate. Additional contributions are ignored.


The future value of your savings is discounted by the inflation rate that you choose. For example, $1,000 today is worth only $971 a year from now if inflation is 3% a year.

The calculator assumes you save with a taxable account. Income taxes on interest earned with a taxable account erode the future value of your savings plan.

If you want to simulate saving with a tax-advantaged account, enter a zero in the fields for federal and state income tax rates.
Taxable account: An account that does not receive the tax breaks that either a tax-exempt account or tax-deferred account are eligible to receive.
Inflation rate: The yearly percentage increase in prices. The annual inflation rate in the U.S. has averaged about 2-3% in the last 10 years.
Future value: The amount to which your investment grows in the future. For example, the future value of $100 invested monthly at 8% is $1,245 after 12 months.
Tax rates: The percentage of your taxable income that is owed to the state and federal governments. The tax rate increases as the taxable base amount increases.
Discount: A price that is less than the regular sale price. In bond investing, a discount is a bond price that is less than the par value of the bond.
Savings interest rate: The yearly interest rate you earn on your savings.
Tax-advantaged account: An investment account with tax-deferred or tax-exempt features that are used to save for retirement, college, and other educational expenses.
Tax-deferred contribution: A tax-deferred contribution is not taxed at the time the contribution is made to a 401(k) plan or other tax-advantaged account but rather in the year that you withdraw it from the account.
Income tax rates: Income tax rates for 2020 are 37%, 35%, 32%, 24%, 22%, 12%, and 10%.
Inflation: A general increase in prices that you pay for goods and services, stated as a yearly rate.
Leadfusion CALCULATORS: Savings Email Results

The Northwestern Mutual Life Insurance Company, 720 E. Wisconsin Avenue, Milwaukee, Wisconsin, 53202-4797.

The calculators are provided by a third party service provider, Leadfusion, Inc. The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed by Northwestern Mutual. This calculator is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered by Northwestern Mutual, its affiliates or any other institution, nor does this calculator predict or guarantee the actual results of any investment product. The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your situation.

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