Method notes

Methodology and formula notes.

Every calculator applies a disclosed formula to information and assumptions entered by the visitor. Inputs are not independently verified.

Net worth

Total assets minus total liabilities.

Monthly cash flow

Monthly income minus essential and other monthly expenses.

Debt-payment-to-income ratio

Monthly debt payments divided by gross monthly income, multiplied by 100. No lender standard is applied.

Savings rate

Monthly amount saved divided by the visitor-entered income figure, multiplied by 100.

Liquid-reserve months

Visitor-entered liquid funds divided by essential monthly expenses. No target is selected.

Compound growth

Starting balance is compounded monthly at the entered hypothetical annual rate; contributions occur at month-end.

Budget

Fixed plus variable expenses equals spending. Planned outflow also includes entered savings. Income minus planned outflow equals the cash difference.

Housing

Principal and interest use the standard fixed-rate amortization formula. Entered taxes and insurance are divided by 12; HOA and mortgage insurance are added separately.

College

Costs are inflated to modeled payment years and converted to enrollment-date value using the entered during-college rate. Savings and costs are compared at the same date.

Retirement

Savings accumulate with year-end contributions. The retirement-date value of the entered growing withdrawal stream uses a growing ordinary-annuity calculation.

Important omissions

Calculations may omit taxes, fees, laws, product rules, timing differences, sequence risk, market variability, maintenance, utilities, closing costs, Social Security, pensions, and personal circumstances not entered. Currency outputs are nominal and displayed values may be rounded while calculations use greater internal precision.