# Benefit of Spending Less Calculator for Free

You can boost your savings in two ways by adjusting your expenses. First, you are having more cash in hand by reducing the costs and second, earning interests by investing the cash in hand. We have designed this calculator to demonstrate the benefit of spending less ignoring the effects of taxes. This calculator will require you to input parameters like your amount of monthly savings, annual rate of return, number of years to save, the Federal tax rate, the State tax rate, total amount savings before and after taxes are paid etc. Make sure your device has JavaScript installed in it before trying to use this online calculator.

- Monthly savings
- Total amount of money you can save monthly by spending less on entertainment, budget, and utility. The calculator will assume that you will invest the total amount you saved.
- Annual rate of return
- Your expected rate of return from the investment. Please note that, the type of investment you choose has an effect on the actual rate of return. For example, the average annual compounded rate of return for the 10 years S&P 500 ended on 2012 was about 7.10%. Bank or savings institutions can pay as little as 0.25% to 1% on savings accounts. It is important to know that future rates of return cannot be foreseen and investments that pay higher rates of return have a higher risk and are more volatile.
- Years to save
- Number of years you have planned to save by spending less.
- Federal tax rate
- Your estimated rate of federal tax on the investment earnings.
- State tax rate
- Applicable rate of state tax on your investment earnings.
- Total savings before taxes
- Value of the savings before state and federal taxes are adjusted.
- Total savings after taxes
- Total savings before tax minus federal and state tax rates. It is assumed that, the taxes are incurred by you as soon as your earnings accrue.