Benefit of Spending Less

Reducing your spending can be worth more than you might think. Use this calculator to see just how much your budget reductions may be worth, if you were to invest them. View the value of this new potential nest egg both with and without taxes factored in.

This Financial Calculator requires a Browser with Java(TM) applet Support. If you are seeing this message you will need to download SUN's Java(TM) Plug-in. This can be done simply, and automatically, by clicking the link below:

Get the Java(TM) Plug-in!


Monthly savings
The total amount that you could invest per month by spending less. This amount is calculated by adding up your potential entertainment, budget and utility savings.

Annual rate of return
This is the annually compounded rate of return you expect from your investments. The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2004, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.5% per year. During this period, the highest 12-month return was 64%, and the lowest was -39%. Savings accounts at a bank pay as little as 1% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Years to save
The total number of years you plan to save.

Federal tax rate
The federal tax rate you expect to pay on your taxable investments.

State tax rate
The state tax rate you expect to pay on your taxable investments.

Total savings before taxes
Total value of your savings before taxes are taken into account. Most regular savings accounts and investment accounts are taxable. However, if your savings is being invested into a tax deferred or tax-free investment this total may be important to you.

Total savings after taxes
The total amount you would have accumulated in a taxable account. All taxes are assumed to be paid as your earnings accrue.