How to use this calculator
- Enter the inputs using consistent units.
- Review rate, timing, and scope assumptions.
- Select Calculate to update every result.
- Change one assumption at a time to compare scenarios.
#3307 · Finance Tool
Tax Loss Harvesting Income Forecast Calculator
Forecast annual income supported by reinvested tax-loss-harvesting savings. Choose a withdrawal rate and growth assumption to estimate first-year income, cumulative withdrawals, and the remaining benefit balance over a fixed horizon.
Calculator
Enter assumptionsFormula
Initial benefit = loss × tax rate; annual income = initial benefit × withdrawal rate
The fixed dollar income is withdrawn at each year’s beginning, then the remaining balance grows.
What the result means
Income here means withdrawals funded by the reinvested tax savings. It is not dividend income, guaranteed income, or a forecast for the full portfolio.
This is an educational estimate, not tax, legal, or investment advice. Tax rules, eligibility, account ordering, and state treatment vary; confirm decisions with a qualified professional.
Example calculation
A $25,000 loss at 32% produces an $8,000 benefit. A 4% withdrawal rate sets annual income at $320. With 6% growth, 15 withdrawals total $4,800 and leave about $10,928.54.
Tips for better results
- Keep units consistent from input through result.
- Use unrounded values during the calculation and round only the displayed result.
- Run a conservative and an optimistic scenario before acting.
- Document assumptions so the estimate can be reproduced.
Frequently asked questions
Is the annual income amount adjusted for inflation?
No. It is a fixed nominal dollar amount based on the initial benefit.
Is the withdrawal rate applied to each year’s balance?
No. It is applied once to the initial tax benefit to set a fixed annual target.
Can growth fund more than the original tax benefit?
Yes. Positive returns can cause total withdrawals plus ending balance to exceed the initial pool.
Does the forecast include taxes on withdrawals?
No. Account type and tax treatment are not modeled.
What if the benefit pool is depleted?
Later withdrawals are capped by the remaining balance and then stop.
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Income forecast mechanics
| Measure | Definition |
|---|---|
| Initial pool | Loss × applicable tax rate |
| Annual target | Initial pool × withdrawal rate |
| Ending pool | Balance after withdrawals and growth |