Financial Calculator

[ohfrugalone]

Does anyone know of a link to a calculator that figures out the net cost when you invest in a tax deferred vehicle. I know I always used to see these calculators, but now that I need one, I can't find any.

Thanks in advance if you know of one.

[SteveL]

Not sure I understand the question.....Do you mean net cost to invest in tax deferred account like an IRA? Are you asking about investing in pre-tax vs after-tax accounts?

[MasterBlaster]

Quote:

Originally Posted by ohfrugalone Does anyone know of a link to a calculator that figures out the net cost when you invest in a tax deferred vehicle. I know I always used to see these calculators, but now that I need one, I can't find any. Thanks in advance if you know of one.

Just subtract the amount at your marginal tax bracket from the principal.

P *(1-Rate) = net cost

Where

P = gross Principal invested
rate = your marginal tax bracket rate