By James Moore
November 14, 2023
Savings.com Inflation, Taxes, and Savings Calculator
While an increasing number of Americans are working to set aside savings, many people don’t realize the huge impact inflation and taxes can have on that process. One or 2 percent may not impact your 12-month vacation savings plan, but even a small change in tax rates and inflation can make a major difference over years or decades.
Use our Historical Interest Calculator below to understand the impact of inflation on your savings over time. Try entering the same savings amount and changing the time to see what your nest egg would be worth as far back as 1914.
Now that you’ve got a deeper understanding of the long-term power of inflation, here are a few more tips to help you in the short term:
- Consult a financial advisor: Using devices like this calculator is a great way to begin planning, but seeking expert advice is essential before deciding on an investment strategy. Consider a legal service provider like Nolo to find the right advisor for your needs.
- Consider your short-term goals: Decades-long savings plans can be overwhelming to consider, and a lot of life goes on between college and retirement. From home remodels and exciting family travel packages to budgeting for your personal health, it’s healthy to set milestones along the way. Take some time to consider any short-term goals you’d like to set, and use our Savings Goal Calculator to create a road map.
- Create a budget: Every successful journey begins involves a well-considered plan. Decades worth of savings won’t simply happen — take an inventory of your personal life and identify the changes you may need to make in order to create more financial headroom for saving and investing. Small changes like clipping coupons on clothing can be a great start!
- Start early: True wealth-building is often a slow process. While interest, inflation, and taxes can hamper your ability to save over time, you’ve probably realized through using this calculator just how big a factor time can play in generating financial momentum. Crunch the numbers using our Early Savings Calculator for an even clearer picture of the difference a few years can make.