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Compound Interest Calculator |
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Compound Interest Calculator enables people to see how the effect of tax and the Medicare levy each year affects their savings growth. The effect is significant. Try the Compound Interest Calculator with and without tax and Medicare rates to see the difference. Compound Interest Calculators are great at showing how your money grows over time. However, what is often overlooked in compound interest calculators is the need to pay tax on your interest each year. The effect of paying tax each year has a significant impact on how much you actually end up with over the years. I've not seen a compound interest calculator take into account the tax and Medicare Levy on your interest earned each year. The compound interest calculator enables you to see the difference over the years which can be very significant, potentially even halving or worse, the compound interest effect. The Compound Interest Calculator enables you to see the effect of tax and the Medicare Levy on your savings, or you can see what your savings could be without tax and the Medicare Levy. NEW - Try the Saving option in the menu above if you'd like to see the effect of depositing a regular saving amount. |
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Compound Interest Calculator Amount The amount is the amount deposited into the interest earning account at the start. Years Enter the number of years the money will remain in the account. Frequency The default frequency is for interest to be calculated monthly. Options are also provided to calculate interest fortnightly, weekly and daily. Interest The interest rate is the annual interest rate you'll earn on your money. Final Amount The final amount is the amount of money that will be available at the end of the number of years taking into account compounding interest and if entered, reduced for tax and Medicare Levy each year. Total Interest The Total Interest amount the amount of interest earned over the number of years. Tax Rate The tax rate is your current marginal tax rate. That is the highest tax rate that applies to your current income. You can find the tax rates for 2019/2020 at ATO Tax Calculator. Medicare Levy The Medicare Levy is currently 2% (as @ 9/9/2019). If the Medicare Levy Surcharge also applies add both levies together and use the result as the Medicare Levy. NOTES
Financial Calculators
Future Value Calculator Disclaimer The Compound Interest Calculator web app comes with no warranty expressed or implied. The Compound Interest Calculator web app is only for informational purposes and is not guaranteed to be error free. The information on this page is not intended to be advice. |
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