ProMoney · Simulator
Investment Tax Drag Simulator
How much taxes quietly cost your portfolio.
Assumptions
Taxable (end)
$352,365
Tax-advantaged (end)
$466,096
Cost of tax drag
$113,731
| Year | Taxable Account | Tax-Advantaged |
|---|---|---|
| Year 5 | $137,009 | $146,933 |
| Year 10 | $187,714 | $215,892 |
| Year 15 | $257,184 | $317,217 |
| Year 20 | $352,365 | $466,096 |
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Built by The Crimson Bench · Educational model, not financial advice
About the Investment Tax Drag Simulator
Compare a taxable account to a tax-advantaged one over the years, so you can see the long-run cost of tax drag.
It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.
How the Investment Tax Drag Simulator Works
The model takes 4 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.
The Inputs
| Assumption | Example value |
|---|---|
| Starting balance | $100,000 |
| Annual return | 8% |
| Annual tax drag | 1.5% |
| Years | 20 |
Worked Example
Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.
Taxable (end)
$352,365
Tax-advantaged (end)
$466,096
Cost of tax drag
$113,731
| Year | Taxable Account | Tax-Advantaged |
|---|---|---|
| Year 5 | $137,009 | $146,933 |
| Year 10 | $187,714 | $215,892 |
| Year 15 | $257,184 | $317,217 |
| Year 20 | $352,365 | $466,096 |
The Operator's Read
Tax drag compounds against you the same way returns compound for you — over 20 years it costs about $113,731 here. Maxing tax-advantaged accounts is one of the highest-return "investments" available.
Assumptions & Limitations
- •The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
- •Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
- •It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
- •This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.
Frequently Asked Questions
What does the Investment Tax Drag Simulator calculate?
Compare a taxable account to a tax-advantaged one over the years, so you can see the long-run cost of tax drag. It takes 4 assumptions — Starting balance, Annual return, Annual tax drag, Years — and returns Taxable (end), Tax-advantaged (end), Cost of tax drag, along with a full projection table you can export.
How do I use the Investment Tax Drag Simulator?
Enter your own figures in the input fields above — Starting balance, Annual return, Annual tax drag, and the rest. The model recalculates instantly and shows the resulting Taxable (end) and full breakdown. No sign-up needed to run it.
Is the Investment Tax Drag Simulator free?
Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.
What's the difference between this and a free calculator?
A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.
Who built the Investment Tax Drag Simulator?
The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.
Is this financial advice?
No. The Investment Tax Drag Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.
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The Crimson Bench · Est. 2002 · Founded in New York City
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