How This Calculator Works
Enter your initial investment and annual contribution.
Set the expected return rate and investment period.
Input the annual tax rate on investment gains.
See the difference between taxable and tax-advantaged growth.
Tax Drag Calculator
Why Use This Calculator
Visualize long-term tax impact on investments
Compare taxable vs tax-advantaged accounts
Understand the true cost of annual taxation
Make informed account choice decisions
Tax drag is the annual reduction in returns due to taxes on dividends, interest, and realized gains. In taxable accounts, paying taxes annually reduces the amount available to compound. Tax-advantaged accounts defer or eliminate this drag.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.