Marginal Tax Rates (MTR) - try the following web pages
United States http://www.irs.gov/prod/ind_info/tax_tables/tax_sched.html
Canada http://www.ccra-adrc.gc.ca/tax/individuals/faq/2000_rate-e.html#1
World Taxpayers Associations http://www.worldtaxpayers.org/statmarg.htm
The Return Calculator With Taxes is designed to allow users to find the after tax income from their investments.
On the right side of the input area you can input a % of Capital Gains that is taxable useful for Canadians and other
countries that use percentages of Capital Gains that are taxable.
Other countries can input a specific amount of Capital Gains that is exempt from tax.
Generally you will use one or the other and not both.
One should be set to zero.
To set the % field, go to File in the main menu then properties to change the percentage.
The Recalculate button is used to recalculate the spreadsheet after a deposit/withdrawal is input directly in the
spreadsheet under the Other Deposits column.
You can input a monthly deposit or withdrawal in the Deposit field.
Enter all your information and click the Calc/Create button.
The spreadsheet is created.
Scroll down to find the period you want to analyze.
Under each column you can see the after tax amount available.
Example:
We want to know how much we will have in our portfolio in 25 years.
Marginal Tax Rate [MTR] [%] - Enter 22.5
Starting Value - Enter 102877.84
Start Date - Enter 12/03/1999 [December 3, 1999]
No. of Years - Enter 25
End Date is calculated and shows - 12/03/2024
We want to change the End Date so it aligns with our retirement date of June 1, 2024
End Date - Enter 06/01/24
You have look at your portfolio and decide that you should be able to achieve a return of 6.77%
Yearly Rate of Return [%] - Enter 6.77
You will deposit $350.00 into your account every month.
Deposit - Enter 350
Date of Birth - Enter your date of birth
For this example
Date of Birth - Enter 04/05/62 [April 5, 1962]
Under <Frequency>
Select the radio button to the left of Per Month
Under <Deposits/Withdrawals>
Select at Beginning of Period (We will make our $350.00 deposits on the 1st of the month)
The top of your screen should look something like this
On the right side of the input screen
Amount of Capital Gains That is Taxable [%]
We will change this to 50%
Under File in the Main Menu Select Properties
You are presented with the Change System Properties screen
Amount of Capital Gains that are Taxable - Enter 50
Click OK
Capital Gains Exempt Amount - Enter 0
You are finished entering data.
Under <Data Guide>
Click the Calc/Create button
The spreadsheet is created.
Your screen should look like this
Quick Look area
In the lower right side of the input area Balance as of = 05/31/24 (May 31, 2025)
Age = 62 (Your Age on that date)
Pre Tax Balance = 801,588.92 (The Balance as of May 31, 2024 before taxes)
Scroll down the spreadsheet until you reach the end.
You can see the Pre Tax Gross Value, Capital Gains, Interest, and 401K/RRSP after tax amounts.
If you withdraw all the funds you would receive
Capital Gains - $734,054.27 (Only 50% of your gains were taxable at 22.5%)
Interest - $667,531.43 (The entire growth is taxable not the deposits)
401K/RRSP - $621,231.41 (The money grows tax sheltered until withdrawn and is then 100% taxable, including your deposits. This does not include the tax refunds you received)
You decide that this is more than sufficient for you needs.
You would like to include in the plan a new boat when you are 55 years old.
Scroll up until you are at period 209 - 2 days before your birthday.
Select the cell under Other Deposits
Enter -40000 (do not forget the minus sign)
Under <Other Deposits> in the data input area
Click the Recalculate button
The spreadsheet recalculates and looks like this
Your Pre Tax Balance is $736,698.55
This is only one example of how you can use this calculator.