How our calculations work
We show the formulas and assumptions behind our initial three tools so results can be checked independently.
Bonus and compensation
Gross bonus = annual base salary × target bonus rate × payout percentage. Gross annual cash compensation = base salary + calculated bonus. Taxes, deductions, and other awards are excluded.
Investment growth
Each month: ending balance = prior balance × (1 + annual nominal return ÷ 1200) + monthly contribution. Contributions are assumed to occur at month-end. This is a deterministic illustration, not a market forecast.
Retirement savings
The investment growth formula is applied from current age to retirement age. The nominal future balance is discounted to today's dollars by dividing by (1 + annual inflation rate) raised to the number of years. Taxes, fees, and withdrawals are excluded.
Important limitations
Actual returns vary, and negative outcomes are possible. Inputs are not independently verified. Results should be considered scenarios rather than predictions.