Budgeting and prices questions, answered

Adviser Fee Impact Calculator NZ 2026/27

How much does a 1% adviser fee cost over time?

Far more than 1%, because it compounds. On the worked example of $250,000.00 over 25 years, a 1.00% fee reduces the final balance from $1,279,785.25 to $1,011,461.62. That is a cost of $268,323.63, or 20.97% of what the portfolio would otherwise have reached.

Why is the cost so much larger than the fees paid?

Because every dollar taken as a fee also stops earning. On the worked example $131,182.46 is paid in fees over the 25 years, while the total cost is $268,323.63. The remaining $137,141.17 is growth those fees would have generated, and it is larger than the fees themselves.

What does an adviser need to add to be worth the fee?

Exactly the fee, every year, after their own costs. A 1.00% fee requires 1.00% a year of additional value to leave you level. That value does not have to come from picking better investments. It can come from tax structure, contribution discipline, or avoided mistakes, and those are easier to deliver reliably than outperformance is.

Can advice be worth the cost?

It can, and a single avoided mistake can cover a great deal of it. On the worked example, an investor who sells at the bottom of a 30.00% fall and returns after a 20.00% rebound is $30,887.50 worse off immediately, which compounds to $148,119.41 by year 25. That single avoided sale is worth 1.13 times the entire 25 years of fees.

Is a percentage fee or a fixed fee better?

It depends entirely on portfolio size, because the work does not scale with the balance. A 1.00% fee is $1,000.00 on $100,000.00 and $10,000.00 on $1,000,000.00 for broadly the same service. A $3,000.00 fixed fee is 3.00% on the smaller portfolio and 0.30% on the larger one, so percentage pricing favours smaller portfolios and fixed pricing favours larger ones.

Does this include fund management fees?

They are entered separately and deliberately excluded from the advice cost, because you pay them whether or not you use an adviser. Only the advice fee itself is treated as the cost of advice, which keeps the comparison fair to both sides.

Are adviser fees tax deductible in New Zealand?

Generally not for an individual investor holding a personal portfolio. Deductibility depends on the nature of the expense and how the investment is held, and it is a question for your accountant rather than a calculator. This page treats fees as fully borne by the investor.

What is not captured here?

Everything an adviser does that is not a return number. Estate and trust structuring, insurance advice, tax efficiency, and having someone accountable when a decision is difficult are all real and none of them appear in this arithmetic. The calculator sizes the cost precisely and cannot size the benefit, so treat it as one input rather than a verdict.

Cash Drag Calculator NZ 2026/27

What is cash drag?

It is the return given up by holding money in cash rather than investing it. On the worked example, $50,000.00 held in a bank account at 2.50% taxed at a 33% marginal rate grows to $59,035.31 over ten years, while the same money in a foreign shares PIE returning 7.00% gross grows to $83,801.87. The drag is $24,766.57, which is more than the cash balance grew in total.

Does cash lose money in New Zealand?

In real terms it usually does. On the worked example the after-tax return on cash is 1.68% against 2.20% inflation, which is a real return of -0.51% a year. The $50,000.00 grows to $59,035.31 in nominal terms but is worth $47,490.08 in today's money, so the purchasing power falls by $2,509.92 while the balance appears to rise.

How is a foreign shares PIE actually taxed?

Under the fair dividend rate, tax is charged on 5% of the fund's opening value each year at your prescribed investor rate, not on what the fund actually returned. At a 28% PIR that is 1.40% of the balance a year. The actual dividends and gains are not separately taxed on top. This is why applying your PIR to the whole return, as most simple calculators do, materially overstates the tax.

Does the type of fund change the answer?

Yes, by a meaningful margin. On the worked example, ten years produces $83,801.87 in a foreign shares PIE under the fair dividend rate, $88,366.75 in a New Zealand and Australian shares PIE where only dividends are taxed, and $80,089.81 in an income or bond PIE where the whole return is taxed. Same gross return of 7.00% and the same fee, three different results, entirely from the tax basis.

How long does the horizon need to be?

The gap compounds, so it grows far faster than the time does. On the worked example it is $10,400.78 at five years, $24,766.57 at ten and $106,095.89 at twenty-five. Doubling the horizon from ten to twenty years does not double the cost, it nearly triples it. That asymmetry is the argument against waiting for a better moment.

Should I hold no cash at all then?

No. An emergency fund and any money with a known use inside a few years belong in cash, and the drag on that money is the price of it being available, not a mistake. This calculator only applies to money that is genuinely surplus to both. Work out the fund size first and exclude it before entering an amount here.

Does the fund fee really matter that much?

It matters more than the headline suggests, because it is deducted every year on the whole balance and compounds against you in exactly the way returns compound for you. On the worked example a 0.30% fee reduces the gross 7.00% to 6.70% before tax. Doubling that fee costs more over a long horizon than most people expect, which is why it is a separate input here rather than folded into the return.

Is a 7% return a safe assumption?

It is an assumption, not a forecast, and the result is only as good as it is. Real returns arrive unevenly, including years that are sharply negative, and the calculator shows a smooth path that no fund actually follows. The point of the output is the size of the gap and how it scales with time, not a prediction of any particular balance on any particular date.

Company Solvency Test Calculator NZ

What is the solvency test in the Companies Act 1993?

Section 4 of the Companies Act 1993 sets a two-limb test. A company satisfies it only if, first, the company is able to pay its debts as they become due in the normal course of business, and second, the value of the company's assets is greater than the value of its liabilities, including contingent liabilities. Both limbs must be satisfied. Failing either one means the company does not satisfy the solvency test.

When do directors have to apply the solvency test?

Before authorising a distribution, which includes a dividend, a share buy-back or redemption, financial assistance for the purchase of the company's own shares, and certain other transactions. Under section 52 the board must be satisfied on reasonable grounds that the company will satisfy the solvency test immediately after the distribution, and the directors who vote in favour must sign a certificate saying so.

What are contingent liabilities in the solvency test?

Obligations that would become payable if something happened: a personal or company guarantee given for another party's borrowing, the remaining commitment under a lease, a disputed claim or legal proceeding, warranty and remediation obligations, and earn-out or deferred consideration owed on an acquisition. The Act requires them to be counted in the balance sheet limb. Section 4 does allow directors to consider the likelihood of the contingency occurring and any right the company has to claim against someone else, but that is a judgement to document rather than a reason to ignore them.

Can a company pass one limb and fail the other?

Yes, and it happens frequently. A business with substantial property but very little cash can be comfortably solvent on the balance sheet and unable to pay next month's wages, which fails the liquidity limb. The reverse also occurs: a company sitting on cash received in advance for work it has not yet done can look liquid while its liabilities exceed its assets. On the worked example the company passes both limbs, but a proposed $200,000.00 distribution would leave the liquidity limb $55,000.00 short while the balance sheet limb still passes with $350,000.00 of headroom.

What happens if directors get the solvency test wrong?

A distribution made when the company did not satisfy the solvency test may be recoverable from shareholders, and directors who signed the certificate without reasonable grounds can be personally liable to repay the company. Directors also carry duties under sections 135 and 136 relating to reckless trading and to incurring obligations the company cannot perform. This is a genuine personal exposure rather than a technicality, which is why the test should be documented at the time rather than reconstructed later.

Should shareholder current accounts be counted as liabilities?

Generally yes. Money a shareholder has left in the company is owed by the company and is a liability, even though the shareholder is unlikely to demand it at short notice. Some companies formally subordinate shareholder loans, which changes the analysis, but that requires documentation rather than an assumption. Treating a current account as equity because the owner would never call it in is exactly the sort of optimistic judgement that fails scrutiny afterwards.

Is this the same as the Altman Z-Score?

No. The Z-Score is a statistical model that predicts the likelihood of failure and has no legal status anywhere. The section 4 solvency test is a statutory requirement in New Zealand that directors must actually satisfy before making a distribution. A company can have a poor Z-Score and still satisfy the solvency test, or a healthy Z-Score and fail it if a large payment falls due next month. Use the Z-Score as an early warning and the solvency test as the legal gate.

How far ahead does the liquidity limb look?

The Act does not prescribe a period. It asks whether the company can pay its debts as they become due in the normal course of business, which is a forward-looking judgement rather than a fixed window. Twelve months is a common working horizon and is what this calculator uses, because it captures a full cycle of provisional tax, GST, annual leave and insurance renewals. If your business has a large obligation falling due beyond that, extend the horizon rather than ignoring it.

Cost Cutting Impact Calculator NZ 2026/27

Which costs should a business cut first?

The ones that deliver cash quickly without damaging the ability to earn. On the worked example, cutting advertising delivers the most twelve month cash at $28,600.00 with a one month payback, but it also carries $45,000.00 of revenue at risk, which is more than half the total risk on the page. Software at $10,280.00 delivers less cash but risks nothing at all. Ranking by cash alone points at the wrong answer surprisingly often.

Why is my biggest saving not my best cut?

Because implementation cost and lead time eat the first year. On the worked example, subleasing part of the premises saves $1,850.00 a month, the second largest monthly saving on the page. It costs $12,000.00 to implement and takes four months to take effect, so its twelve month net cash is only $2,800.00, ranking it last. The headline saving and the cash delivered are different numbers, and only one of them helps you this year.

How do I calculate the payback period on a cost cut?

Lead time plus the one-off cost divided by the monthly saving. On the worked example, the premises sublease has a four month lead and a $12,000.00 cost against an $1,850.00 monthly saving, giving 4 plus 6.5, which is 10.5 months. Advertising has a one month lead and no cost, so it pays back in 1.0 month. Any cut with a payback longer than the period you are trying to survive is not solving the immediate problem.

How much revenue will cost cutting put at risk?

On the worked example, $79,000.00 of annual revenue across all five cuts, which at a 40% gross margin is $31,600.00 of gross profit. Against annual savings of $108,120.00, the net annual benefit is $76,520.00 rather than the headline $108,120.00. The revenue figure has to be your own honest estimate: no calculator can tell you what cutting your advertising will do to your pipeline, but pretending the answer is zero is how businesses cut their way into a smaller business.

Should I count redundancy costs when cutting staff?

Yes, in full, as a one-off cost in the year you make the cut. Notice periods must be paid or worked, accrued annual leave is paid out, and any contractual redundancy compensation applies on top. There is no statutory redundancy compensation entitlement in New Zealand unless the employment agreement provides for it, but the process obligations under the Employment Relations Act 2000 are real and the timeline is not short. Treat both the money and the lead time as certain rather than optimistic.

What is the difference between cutting costs and improving margin?

Cutting costs reduces what you spend and is largely within your control, but it has a floor: you cannot cut below what the business needs to operate. Improving margin raises what you keep from each sale and has no ceiling, though it depends on customers accepting the price. Cost cutting is the right response to an immediate cash problem because it works quickly. Margin is the right response to a structural one, because a business that cannot fund itself at normal cost levels has a pricing problem rather than a spending problem.

How deep can I cut before it damages the business?

The practical test is whether the cut reduces capacity to earn or only reduces spending. Software licences nobody uses, duplicated subscriptions and over-specified vehicles are pure spending. Sales capacity, advertising, and the people who deliver the work are capacity. A business can survive removing a great deal of the former and rarely survives removing much of the latter, which is why the revenue at risk column on this page matters more than the ranking.

When should I cut costs rather than borrow?

Cut when the cost base is genuinely too high for the size of the business, borrow when the business is sound but the timing is wrong. The distinction matters because they fail in opposite ways: borrowing to sustain an unaffordable cost base delays the problem at interest, and cutting capacity to solve a temporary timing gap makes the recovery harder. If you are unsure which you have, our business stress test shows whether the revenue floor is the problem or the cash buffer is.

Cost Per Hire Calculator NZ 2026/27

How do you calculate cost per hire?

Total external recruiting costs plus total internal recruiting costs, divided by the number of hires in the period. That is the SHRM and ANSI standard definition. On the worked example, $11,950.00 of external costs plus $2,239.00 of internal time for one hire gives a cost per hire of $14,189.00. The internal side is the part most businesses omit, which is why quoted cost per hire figures are usually understated.

What is a typical cost per hire in New Zealand?

It depends almost entirely on whether an agency is used. On the worked example, hiring through an agency costs $14,189.00 while the same hire run directly costs $4,389.00, a difference of $9,800.00. Agency fees are commonly quoted as a percentage of first year salary, frequently in the 15 to 20 percent range for permanent placements, so the figure scales with the seniority of the role. Direct hiring shifts cost from invoices to your own time rather than eliminating it.

Should I count my own time in cost per hire?

Yes, and at what your time actually earns rather than what you pay yourself. On the worked example the owner spends 11 hours at $95.00 an hour, which is $1,045.00 of the $2,239.00 internal cost. Leaving it out makes direct hiring look free, which is the single most common error in this calculation and leads businesses to run long, unstructured recruitment processes because the cost never appears anywhere.

Is a recruitment agency worth the fee?

It depends on the role and on what your time is worth. On the worked example the agency adds $9,800.00 per hire, and at six hires a year that is $58,800.00. For a role where candidates are plentiful and easy to assess, that is difficult to justify. For a specialist role, a confidential replacement, or one where a bad hire would be expensive, an agency that reliably produces better shortlists can pay for itself several times over through a single avoided mistake.

How much does recruitment cost a small business each year?

On the worked example, $85,134.00 a year at six hires through an agency, or $26,334.00 running the same six directly. Neither figure typically appears as a line in a small business budget, because agency invoices get coded to sundry costs and internal time is never recorded at all. Putting an annual number on it is usually what prompts a business to look at why it is hiring six times a year in the first place.

What is the difference between cost per hire and the cost of an employee?

Cost per hire is what it costs to fill the role, paid once. The cost of an employee is what they cost every year once they are in it: salary, employer KiwiSaver contributions, ACC levies, ESCT on employer contributions, leave, tools, space and supervision. The two are separate budgets and both are routinely underestimated. Our true cost of employee calculator covers the second.

How can I reduce my cost per hire?

The largest levers are hiring less often and hiring more than one person at a time. Reducing turnover removes the cost entirely, and filling two roles from one advertising round genuinely halves the cost per hire because the fixed costs are shared. Beyond that: shorten the process, since most internal cost is hours rather than invoices; use a structured interview so fewer people sit in on each one; and build a pipeline of past applicants rather than starting from nothing each time.

Does cost per hire include onboarding and training?

Onboarding administration does, because it is part of getting the person into the role. Training and the period where they are paid in full but not yet productive do not: those belong in ramp-up cost, which is a separate and usually larger figure. Keeping the two apart matters, because they are reduced by different actions. Cost per hire falls by recruiting more efficiently; ramp-up cost falls by training more effectively.

Equity Multiple Calculator NZ 2026/27

What is the equity multiple?

The equity multiple is total cash returned divided by total cash invested across the life of an investment. It is also called MOIC, or multiple on invested capital. On the default figures, $250,000.00 invested returning $130,000.00 of distributions plus $420,000.00 of net sale proceeds gives $550,000.00 back, which is an equity multiple of 2.20 times and a profit of $300,000.00.

What is the difference between equity multiple and IRR?

The equity multiple measures how much money you made. IRR measures how fast you made it. The multiple ignores time completely: doubling your money in three years and doubling it in twenty both give a 2.0 multiple, and they are obviously not the same investment. IRR accounts for when each dollar arrived. Neither is sufficient alone, which is why professional investors always quote both.

Can a strong equity multiple still be a weak return?

Yes, and this is the single most useful thing to understand about the measure. A 2.20 multiple over five years is an annualised return of 17.08%, which is strong. The identical 2.20 multiple over ten years is only 8.20% a year, and over twenty years it is 4.02%, which is close to a term deposit. The multiple looks the same in all three cases. Always ask over what period before being impressed by a multiple.

Why is the IRR higher than the annualised return from the multiple?

Because IRR rewards cash that comes back early. On the defaults, IRR is 19.14% while the annualised return implied by the 2.20 multiple is 17.08%. The gap exists because distributions were received in each year rather than everything arriving at exit, and money returned in year one can be reinvested for four more years. Where an investment pays nothing until sale, the two figures converge.

Should borrowed money be included in the equity multiple?

No. Only your own cash goes in the denominator, and only cash returned to you goes in the numerator, after the debt has been repaid at exit. This is what makes the equity multiple useful for geared property: it measures the return on the money you actually risked, not on the purchase price. It also means gearing flatters the multiple in a rising market and punishes it savagely in a falling one.

What is a good equity multiple?

The question is incomplete without a time period, which is precisely the trap. A 1.5 multiple over two years is an excellent 22.5% a year. A 2.5 multiple over fifteen years is a poor 6.3% a year despite sounding better. Judge the annualised figure against what the same money could have earned elsewhere at similar risk, and treat any multiple quoted without a holding period as marketing rather than analysis.

Does the equity multiple account for tax?

Only if you enter after-tax figures, which is what we recommend. Enter distributions net of the tax you paid on the income, and enter exit proceeds after any tax on the gain, including bright-line tax where the sale falls inside the two year period and no exclusion applies. A pre-tax multiple compared against an after-tax alternative is not a fair comparison.

How does the equity multiple relate to cash-on-cash return?

Cash-on-cash return measures the annual cash flow in a single year as a percentage of the cash invested, so it describes the income the investment throws off while you hold it. The equity multiple measures the entire result including the sale, over the whole period. A property can have a poor cash-on-cash return every year and still produce an excellent equity multiple if it appreciates, which is exactly the profile of most geared New Zealand residential investment.

Estate And Beneficiary Split Calculator NZ 2026/27

What tax rate does a deceased estate pay?

Income earned by a deceased estate is taxed at 33% for the tax year the person died and the next 3 years. After that the estate is taxed as an ordinary trust, meaning 33% where trustee income is $10,000 or less and 39% above that.

Is it better to retain estate income or distribute it?

Distributing usually wins, because each beneficiary brings their own set of low tax brackets while the estate has none. On the worked example, $80,000.00 of estate income costs $26,400.00 retained at 33%, against $16,498.33 split across three beneficiaries, a saving of $9,901.67 a year.

Why does splitting across more beneficiaries help?

Because every beneficiary gets a fresh set of the 10.5% and 17.5% bands. On the worked example, $80,000.00 to one beneficiary with no other income is taxed at an effective 20.35%. Split across three it falls to 13.41%, and across five to 10.68%.

What happens when the four year concession ends?

The rate on retained income steps from 33% to 39%, which on the worked example costs a further $4,800.00 a year. That makes distributing more attractive still, and it means long-running estates should be reviewed before the fourth anniversary rather than after it.

What is the $10,000 de minimis threshold?

Once the estate is taxed as a trust, trustee income of $10,000 or less is taxed at 33% rather than 39%. It is a cliff rather than a graduated threshold, so it applies to the whole amount. An estate with $10,000.00 of income keeps $6,700.00, while one with $10,001.00 keeps $6,100.61, meaning one extra dollar costs $599.39.

Can I distribute to grandchildren to use their tax brackets?

Rarely with the effect you would hope for. The minor beneficiary rule generally taxes trust distributions to beneficiaries under 16 as trustee income at 39%, which removes the benefit entirely. There are exceptions, including where distributions to that beneficiary total $1,000 or less in the year, but the rule blocks the obvious strategy.

Can the executor choose who receives the income?

Only within the powers the will actually gives them. Trustees and executors owe duties to all beneficiaries and must follow the terms of the will, so income cannot simply be steered to whoever is taxed least. Where a will does allow discretion, the tax outcome is a legitimate consideration among others.

Does distributing capital have the same effect?

No, and the distinction matters. Distributing the estate's capital to beneficiaries is not income and is not taxed as income in their hands. This page deals only with income the estate earns while it is being administered, such as interest, dividends and rent.

Fixed Fee vs Percentage Fee Calculator NZ 2026/27

Is a flat fee better than a percentage fee?

Above a certain balance, always, and below it never. On the worked example a $120.00 flat charge plus 0.10% beats a 0.50% percentage fee at any average balance above $30,000.00. At $10,000.00 the flat structure costs $130.00 against $50.00, and at $250,000.00 it costs $370.00 against $1,250.00. Same two structures, opposite answers.

How do I calculate the break-even balance?

Divide the flat annual charge by the difference between the two percentage rates. On the worked example that is $120.00 divided by 0.40%, which gives $30,000.00. It does not depend on your return, your horizon or how much you contribute, which makes it the one genuinely stable number in the comparison.

Why does a flat fee look so bad on a small balance?

Because a fixed dollar amount is a large percentage of a small number. On the worked example $120.00 on a $10,000.00 balance is an effective 1.30% a year, which is more than double the percentage alternative. The same charge on $250,000.00 is 0.15%. Nothing about the fee changed; only what it is divided by.

How much does the difference add up to?

More than people expect, because the gap grows every year as the portfolio compounds. On the worked example, starting at $40,000.00 with $400.00 a month at 7.00%, the flat structure costs $5,628.29 over twenty years against $16,141.44 for the percentage one, a difference of $10,513.16. In the first year the saving is $49.60; in the twentieth it is $1,236.16.

Should I use my starting balance or my average balance?

The average, because percentage fees are charged on the balance throughout the year rather than on what it was in January. On the worked example a $40,000.00 balance with $400.00 a month averages $42,400.00, and using the starting figure would understate the percentage fee. The calculator handles this for you.

Does a flat fee ever come without a percentage?

Sometimes, and the arithmetic is the same either way. Set the percentage alongside the flat charge to zero and the break-even becomes the flat fee divided by the full percentage rate. Most real structures pair a flat charge with a reduced percentage rather than removing it, which is why the calculator has room for both.

Why do low-percentage providers suit larger balances?

Because their costs are largely fixed while their revenue is not. Serving a $500,000.00 account costs a provider little more than a $50,000.00 one, so a percentage fee earns ten times as much for nearly the same work. A flat or capped charge passes that back, which is why the structures that look expensive to small investors are frequently the cheapest for large ones.

Does my expected return change the answer?

Not the break-even, which depends only on the fees. It changes how quickly you reach the break-even, which is a different question. A higher return or a larger contribution gets you there sooner and widens the gap faster afterwards, but the balance at which the two structures cross is fixed by the fee schedule alone.

Home Bias Calculator NZ 2026/27

What is home bias?

Holding far more of your own country's shares than that country represents in global markets. It is close to universal among investors everywhere, and it matters more in New Zealand than almost anywhere because the domestic market is so small. On the worked example a 30.00% New Zealand allocation against a 0.05% benchmark weight is 600 times the global weighting.

How much of my portfolio should be in New Zealand?

There is no correct figure, and anyone quoting one precisely is guessing. A globally weighted portfolio would hold a fraction of a percent. Most New Zealand investors hold somewhere between 20% and 40%, often without choosing it. The useful question is not what the right number is but whether your number is deliberate, and this page tells you what your number actually is.

Where does my New Zealand exposure come from?

Usually KiwiSaver more than anything else. Conservative and balanced KiwiSaver funds carry substantial New Zealand equity and bond weights, and most members have never looked at the breakdown. Directly held shares and Australasian funds add to it. Adding up all three is the only way to see the total, since nothing reports it in one place.

Should I count my house?

For an honest picture of concentration risk, yes. On the worked example the portfolio alone is 30.00% New Zealand, while adding $250,000.00 of home equity takes New Zealand-linked assets to 80.00% of the total. For most New Zealanders the house is the largest asset by a wide margin and it is entirely exposed to one small economy, one currency and one property market.

Is there any argument for home bias?

Several, and they are worth weighing rather than dismissing. New Zealand shares pay imputation credits that reduce tax for New Zealand investors. There is no currency risk on domestic holdings. Foreign shares held outside a PIE can attract the foreign investment fund rules. Those are real advantages. Whether they justify holding hundreds of times the global weight is a separate question, and the honest answer is that they justify some of it, not most of it.

What is the risk of holding too much New Zealand?

Concentration in a small market with few large companies, combined with the fact that your income, your house and your superannuation are already tied to the same economy. If New Zealand has a difficult decade, everything moves together: the job market, house prices and the portfolio. That correlation is the actual risk, and it is invisible when each asset is looked at on its own.

Why treat Australia separately from New Zealand?

Because many New Zealand funds report a combined Australasian allocation, which hides how small the domestic component is. Australia is a substantially larger market with a different sector mix. On the worked example the two together are 40.00% of the portfolio against a combined 1.55% benchmark, which is 25.8 times, but the New Zealand slice on its own is 600 times.

What is New Zealand's actual weight in global indices?

A fraction of one percent. New Zealand is one of 23 developed markets in the MSCI All Country World Index, where the United States is by far the largest weight. The precise figure moves and MSCI publishes country weights in its own factsheets, so this calculator takes the benchmark weight as an input with an indicative default rather than asserting a number that would be out of date within months.

Job Costing Calculator NZ 2026/27

How do you calculate the true cost of a job?

Add the labour at what it costs you per hour rather than what you charge, plus materials, subcontractors, plant and vehicle time, consumables and travel. That gives direct cost. Then allocate a share of your fixed overheads to the job, either as a percentage of direct cost or as a rate per labour hour. The total is the true job cost. On the default example, 40 labour hours costing $1,392 in wages plus $5,160 of materials, subcontractors, plant, consumables and travel gives $6,552 of direct cost, and $28 per labour hour of overhead adds $1,120, for a true job cost of $7,672.

Should I cost labour at the wage rate or the charge-out rate?

At the wage cost, and that wage cost must include more than the hourly rate on the employment agreement. It needs holiday pay, public holidays, sick leave, KiwiSaver employer contributions, ESCT on those contributions, and ACC levies. A $30 an hour employee typically costs somewhere around $37 to $40 an hour once those are added. Costing the job at the charge-out rate instead makes every job look like it has no profit at all, because you have booked the margin as a cost.

What is a good gross margin on a job in New Zealand trades?

There is no single correct figure, because it depends on how much of the job is labour and how much is materials passed through at a small markup. As a working guide, many New Zealand trades businesses target 25% to 35% gross margin on labour-heavy work and accept less on materials-heavy work, then rely on volume. What matters more than the benchmark is that the margin covers your overhead recovery and leaves a net profit. A 20% gross margin is a loss if overheads consume 22%.

What is the difference between markup and margin on a job?

Markup is calculated on cost and margin is calculated on price, so they are never the same number. Adding 25% markup to a $7,672 cost gives a price of $9,590 and a margin of 20%, not 25%. To achieve a 25% margin you divide the cost by 0.75, which gives $10,229.33. Confusing the two systematically underprices work, and the error grows with the target percentage.

How should overhead be allocated to a job?

For a labour-driven business, allocate it per labour hour, because labour hours are what consume the capacity that the overhead pays for. Work out your annual fixed overheads, divide by the chargeable hours your team can realistically deliver in a year, and apply the resulting rate to each job. A percentage of direct cost is simpler but distorts the result on any job with an unusually large materials or subcontractor component, because those costs do not consume your overhead in proportion to their value.

Why is profit per labour hour more useful than total profit on a job?

Because it lets you compare jobs of different sizes and durations on the same basis. A job returning $2,000 of profit over 40 labour hours earns $50 an hour of crew time. A job returning $1,200 over 12 hours earns $100 an hour. The smaller job is twice as valuable per hour of the constrained resource, which in a trades business is almost always skilled labour rather than capital. Ranking your recent jobs by profit per labour hour usually shows a pattern worth acting on.

Should GST be included when costing a job?

No. If you are GST registered, work entirely in GST-exclusive figures on both the cost and the price. The GST you charge is collected on behalf of Inland Revenue and paid over to them, so it is not income, and the GST you pay on materials is claimed back, so it is not a cost. Mixing GST-inclusive prices with GST-exclusive costs overstates the margin by roughly 15 percentage points and is a common cause of a trades business believing it is profitable when it is not.

Why do jobs come in over the quoted hours so often?

Because the hours quoted are usually the hours the work takes when nothing goes wrong, and something nearly always does. Set-up and pack-down, site access, waiting on other trades, variations agreed verbally and never priced, rework, and travel between sites are all real hours that rarely appear in an estimate. The variance view on this page exists to make that visible: if your actual hours beat your estimate on most jobs, the problem is the estimate rather than the crew, and the fix is in the quoting process.

Joint vs Individual Investment Account Calculator NZ 2026/27

How is a joint investment taxed in New Zealand?

For a portfolio investment entity, joint holders are treated as a single investor and the highest prescribed investor rate among them applies to the whole investment. On the worked example a couple with rates of 28% and 17.5% pay 28% on all of it, costing $1,400.00 a year rather than the $875.00 the lower rate alone would produce.

Should investments be in the lower earner's name?

On tax alone, usually yes where the prescribed investor rates differ. On the worked example it saves $525.00 a year against holding jointly. Tax is not the only consideration though: whose name an asset sits in affects relationship property, what happens on death, and who can access the money, and those consequences outlast the annual saving.

How much does holding jointly cost?

The difference between the two rates applied to the whole investment. On the worked example, $525.00 a year on a $100,000.00 investment returning 5.00%. Reinvested at 5.00% over twenty years that compounds to $17,359.63, which is a meaningful sum for a decision that is usually made without any thought at all.

Can moving money to the lower earner backfire?

Yes, because PIE income counts towards the prescribed investor rate test alongside salary. Shifting a large enough investment into the lower earner's name can push their combined income past a threshold and move them into a higher band, which removes the saving. The calculator shows how much can sit in their name before that happens.

How is the prescribed investor rate worked out?

It uses the better of the last two income years. You qualify for 10.5% if in either year your taxable income was $15,600 or less and your taxable income plus PIE income was $53,500 or less. You qualify for 17.5% if your taxable income was $53,500 or less and the combined figure was $78,100 or less. Otherwise it is 28%.

Does splitting evenly help?

It captures half the benefit. On the worked example, two separate accounts holding half each pay $1,137.50 against $1,400.00 jointly, saving $262.50 a year, while putting everything in the lower earner's name saves $525.00. Splitting evenly is often the compromise couples are comfortable with, and it is worth knowing it delivers half the available saving rather than all of it.

Does this apply to bank interest as well?

The principle does, and the mechanism differs. Interest on a joint bank account is generally split between the holders and taxed at each person's own marginal rate, rather than the whole amount going to the higher rate. The highest-rate rule modelled here is specific to portfolio investment entities, which is what most managed funds and KiwiSaver schemes are.

Is it worth restructuring an existing joint account?

Compare the annual saving against the cost and hassle of moving, and against the non-tax consequences. Moving between accounts may involve selling and rebuying, which crosses spreads and puts you out of the market briefly. Where the saving is a few hundred dollars a year and the investment is long term, it usually pays back quickly, but it is a decision worth taking advice on rather than acting on a calculation alone.

Minimum Price Calculator NZ 2026/27

How do you calculate a minimum selling price?

Take every cost that is a fixed dollar amount, being direct cost plus allocated overhead, and divide it by one minus the total of every percentage that comes off the price. Those percentages are sales commission, a rework or warranty allowance, the cost of capital on slow payment, and your required margin. On the default figures, $7,672.00 of cost divided by (1 minus 24.48%) gives a minimum price of $10,158.82 excluding GST at a 15% floor margin.

Why divide by one minus the margin instead of adding the margin on?

Because margin is calculated on the price, not on the cost. Adding 15% to a $7,672 cost gives $8,822.80, but the margin on that price is only 13.04%, not 15%. Dividing by 0.85 gives $9,025.88, which does deliver a true 15% margin. Anything you take as a percentage of the selling price, including commission and warranty allowances, has to be handled the same way, which is why they all sit together in the divisor.

Should sales commission be treated as a cost of the job?

Yes, if it is paid on that sale. A 5% commission on a $10,158.82 sale is $507.94 that never reaches your bank account, so pricing as though it did overstates the margin by the full commission percentage. The reason it belongs in the divisor rather than being added to the cost is that the commission amount depends on the price, and the price depends on the commission, so the two have to be solved together.

How much should I allow for rework and warranty?

Use your own history rather than a rule of thumb. Add up what you spent last year on returning to jobs, fixing defects, replacing failed product and the labour that went with it, then express it as a percentage of revenue for the same period. Most businesses that have never measured it are surprised by the answer. If you genuinely have no data, pricing with a small allowance is better than pricing with none, because an allowance of zero assumes perfection and no business achieves that.

Why does slow payment change the minimum price?

Because you fund the work until you are paid, and that funding has a cost. If your overdraft or finance costs 12% a year and a customer takes 45 days to pay, the money is tied up for roughly an eighth of a year, so the effective cost is about 1.48% of the price. That is not a large number on its own, but a customer on 90 day terms costs twice as much as one on 45, and pricing them identically means the slow payer is being subsidised by the fast one.

What is the difference between the floor price and the target price?

The floor price is the lowest number you will accept and still be satisfied with the work, calculated at your minimum margin. The target price is what you actually want, calculated at your target margin. You should walk into a negotiation knowing both, because a price is much easier to hold when you know exactly where the line is. On the defaults, the floor at a 15% margin is $10,158.82 and the target at 25% is $11,709.30.

How much can I discount before the job loses money?

Down to the zero-margin price, which is what the sale costs you once commission, rework and cost of capital are covered but no profit is made. On the defaults that is $8,475.42, which is 27.62% below the $11,709.30 target price. Any discount beyond that point means you are paying for the privilege of doing the work. Note that the zero-margin price already includes an overhead allocation, so a price slightly below it is not an immediate cash loss, but it does mean the sale is not carrying its share of the fixed costs.

Should the minimum price include GST?

Work in GST-exclusive figures and then add GST at the end for quoting. GST is collected on behalf of Inland Revenue rather than earned, so it must never appear in a margin calculation. The calculator shows both, because when you quote a consumer the Fair Trading Act requires the price to be presented in a way that is not misleading, which in practice means showing the GST-inclusive figure prominently. Business to business quoting is conventionally GST exclusive, but say which you mean.

New Hire Ramp-Up Cost Calculator NZ 2026/27

How much does it cost before a new hire is productive?

On the worked example, $20,372.00 over twelve weeks. That is $16,000.00 of lost output as productivity climbs from 20% in week one to 100% in week twelve, plus $1,972.00 of trainer time and $2,400.00 of course fees. The salary itself is not counted as a ramp cost because it is the ongoing cost of the role, but it is paid in full throughout regardless of what is produced.

When does a new hire start paying for themselves?

On the worked example, week 13. Cumulative value produced overtakes cumulative cost incurred in the week after the ramp period ends. That is later than most owners expect, and it explains why a hire who leaves at four or five months has cost the business considerably more than the salary paid: they departed before ever reaching the point of contributing more than they consumed.

How long does it take a new employee to become fully productive?

It depends heavily on the role, so this page asks you rather than assuming. Simple operational roles may reach full speed in four to six weeks. Skilled trades, professional and technical roles commonly take three to six months, and roles requiring customer relationships or deep system knowledge can take longer still. The worked example uses twelve weeks. The important thing is to use a period you have actually observed rather than an optimistic one, because an unrealistic expectation is a common reason new hires are judged too early.

Should I measure ramp-up against revenue or against salary?

Against revenue for a billable or revenue-generating role, and against their own cost for an internal one. The distinction matters a great deal. On the worked example, a billable role producing $3,200.00 a week at full speed loses $16,000.00 during ramp. The same twelve weeks measured against the employee's $1,579.92 weekly cost would show around $7,900.00, less than half. Neither is wrong; they answer different questions, and using the wrong one understates the cost of slow onboarding in a billable business.

What is the saving from shortening the ramp period?

On the worked example, $2,560.00 for two weeks and $5,120.00 for four. That is the figure to weigh against the cost of better onboarding: documented process, a structured first-month plan, a designated buddy, or recorded training rather than repeated explanation. Most of those cost hours once and then apply to every subsequent hire, which is why they usually pay back well inside a single recruitment cycle.

Does trainer time really count as a cost?

Yes, because the person doing the training is not doing their own work while they do it. On the worked example, 34 hours at $58.00 is $1,972.00, and that is usually an underestimate because supervision is rarely a block of scheduled hours. It is a question here, an interruption there, a job checked before it goes out. Businesses that document process well pay this cost once rather than on every hire.

Why does the productivity curve have three points?

Because ramp-up is rarely a straight line. Most new hires start slowly while they learn the basics, then improve rapidly once the fundamentals are in place. Setting week one, the midpoint and full competence separately lets you describe that shape rather than assuming a constant rate of improvement. On the worked example the curve runs 20% in week one, 60% at the midpoint and 100% at week twelve, which is a common pattern for a skilled role.

How does ramp-up cost relate to turnover cost?

Ramp-up is one of the four components of turnover cost, and it is the one most often left out. Every departure triggers a fresh ramp period for the replacement, so a business with high turnover pays this cost repeatedly. On the worked example a $20,372.00 ramp cost incurred five times a year is over $100,000, which is usually a more compelling argument for retention than the recruitment fees alone.

Overhead Recovery Rate Calculator NZ 2026/27

What is an overhead recovery rate?

It is the amount of fixed overhead that each chargeable hour has to recover before the business breaks even. You calculate it by dividing total annual fixed overheads by the number of hours you can realistically bill in a year. On the default figures, $114,000 of overheads across 4,056 chargeable hours gives a recovery rate of $28.11 per chargeable hour. That figure sits inside your charge-out rate on top of the wage cost of the person doing the work, and before any profit margin.

What counts as an overhead rather than a direct cost?

An overhead is a cost you pay whether or not you win any work: rent, insurance, vehicle running and lease costs, administration and office wages, software subscriptions, accounting and compliance, marketing, phones and power. A direct cost is caused by a specific job, such as materials, subcontractor invoices, plant hire for that job and the wages of the people on the tools. Direct costs are recovered in the job price. Overheads are recovered through the hourly rate, which is what this calculator sizes.

What is a realistic utilisation rate for a trades business?

Most New Zealand trades and service businesses land somewhere between 55% and 75% once everything non-chargeable is honestly accounted for. Four weeks of annual leave and eleven public holidays alone remove roughly 15% of the year before anyone gets sick. Add travel between sites, quoting work you may not win, rework, training, tool and vehicle maintenance, and the daily admin of running jobs, and 100% billable is impossible. Assuming 85% or 90% is the most common and most expensive planning error in this calculation.

Why does a small drop in utilisation cost so much?

Because overheads are fixed while the hours you can spread them over are not. The overhead bill does not shrink when your team is less busy, so the same dollars have to be recovered from fewer hours. On the default figures, dropping utilisation from 65% to 60% removes 312 chargeable hours. If you keep charging the original $28.11 of overhead recovery you collect $105,230.77 against a $114,000 bill, leaving a shortfall of $8,769.23 that comes straight out of profit. The rate itself would need to rise to $30.45 to stay whole.

Should the owner be counted as a productive staff member?

Only for the share of their time that is genuinely billed to clients, and be honest about it. A working owner who is on the tools three days a week and quoting, ordering and managing for the other two is roughly 60% productive at best. Counting a working owner as a full chargeable head is a common way to understate the recovery rate, because it inflates the divisor with hours that will never be invoiced.

How does the overhead recovery rate relate to my charge-out rate?

The charge-out rate is built in three layers. The first is the fully loaded wage cost of the person doing the work, including holiday pay, KiwiSaver, ESCT and ACC. The second is the overhead recovery rate calculated here. The third is your profit margin. If a tradesperson costs $38 an hour loaded and your recovery rate is $28.11, you are at $66.11 before a cent of profit, so a $75 charge-out rate is only about a 12% margin rather than the healthy number it looks like.

Should admin wages go in overheads or in labour cost?

In overheads. An administrator, bookkeeper, or office manager does not produce chargeable hours, so their wage cannot be recovered through their own time. It has to be carried by the people whose time is sold. The same applies to a full-time estimator or a non-working owner. Putting them in the overhead pool and excluding them from the productive headcount is what makes the rate correct.

How often should the overhead recovery rate be recalculated?

At least annually, and whenever something structural changes: a new lease, a hire, a vehicle added or removed, or a sustained shift in how busy the team is. The rate is only as good as the utilisation assumption behind it, so it is worth checking actual billed hours against the assumption every few months. If you billed materially fewer hours than you planned for, you have been under-recovering all year and the gap is already sitting in your accounts.

Overtrading Risk Calculator NZ 2026/27

What is overtrading?

Overtrading is growing faster than your cash can support. It is not a trading problem or a profitability problem: the business is winning work and making money on it. The difficulty is that each additional sale consumes cash for stock, wages and materials before the customer pays, so the faster revenue grows the further the business falls behind on cash. It is one of the most common ways a genuinely successful New Zealand small business fails.

How much cash does growth actually consume?

On the worked example, 21.64 cents for every additional dollar of revenue. That comes from 15.07 cents held in debtors for 55 days, plus 11.51 cents held in stock for 70 days, less 4.93 cents of supplier credit for 30 days. Growing revenue by $1,110,000.00 therefore ties up $240,246.58 of working capital, before a single dollar of profit is banked.

What growth rate can my business self-fund?

On the worked example, 18.61%, against a target of 60%. The business generates $92,500.00 of retained profit, of which $18,000.00 goes on upfront costs for new customers, leaving $74,500.00 to fund working capital. At 21.64 cents per dollar of growth, that funds about $344,000.00 of additional revenue, which is 18.61% of current turnover. Growing faster is possible, but only with funding arranged before the growth arrives.

How much funding do I need to grow at my target rate?

On the worked example, $165,746.58. Growing 60% requires $240,246.58 of working capital plus $18,000.00 of upfront customer costs, a total of $258,246.58, against $92,500.00 of retained profit. The gap is what has to be borrowed, invested or released from the cash cycle. Knowing that figure before committing to the growth is the entire point: it is far easier to arrange in advance than during.

Why do profitable businesses run out of money when they grow?

Because profit and cash arrive at different times. A sale is recognised as profit when the invoice is raised, but the cash appears when it is paid, and in the meantime the business has already paid for the materials and the wages. On the worked example there are 79 days between spending and being paid. Every additional sale extends that funding requirement, so growth makes the cash position worse before it makes it better, even at a healthy margin.

How do I reduce the cash my growth consumes?

Shorten the cycle rather than slowing the growth, where you can. Ten days off debtor days is worth 2.74 cents per dollar of revenue on the worked example. Deposits on larger jobs remove the funding requirement entirely for that portion. Ten extra days of supplier credit is worth 1.64 cents. Reducing stock days helps most in businesses holding slow-moving inventory. All of these are cheaper than borrowing and none of them require growing more slowly.

What is the difference between overtrading risk and sustainable growth rate?

They answer the same question from opposite directions. Sustainable growth rate works from the ratios, deriving a maximum growth rate from return on equity and retention, and is the right tool for a business with a balance sheet and external funding. This page works from the cash cycle, deriving the same limit from debtor, stock and creditor days, which is more concrete for an owner-managed business. Where the two disagree, the cash cycle version usually binds first.

Should I turn down work if I cannot fund the growth?

Sometimes, and it is a legitimate decision rather than a failure of ambition. The alternatives are to fund the growth with borrowing, to change the terms so the work funds itself through deposits and progress payments, or to grow at the self-fundable rate. Accepting work you cannot fund and hoping it resolves is the option that ends businesses, because the point of failure arrives when the order book is full and the business looks its most successful.

PIR Overpayment Recovery Calculator NZ 2026/27

Do I get overpaid PIE tax back?

Yes. Inland Revenue's end-of-year PIE calculation states that if you have paid too much tax on your PIE income you will have a PIE credit, that this can be used to reduce any income tax you have to pay, and that any remaining credit is refunded. This was not always the case, so if your wrong rate goes back a long way, ask Inland Revenue which years can still be assessed rather than assuming every year is recoverable.

What happens if my PIR was too low?

You underpaid, and Inland Revenue says that produces a PIE debt which is added to the income tax you have to pay on your taxable income. It is not written off. A person who left a 10.5% rate running while earning enough for 28% will owe the 17.5 percentage point difference on every dollar of PIE income attributed to them across the affected years.

How much does a wrong PIR actually cost?

It is the gap between the two rates multiplied by your PIE income. On the worked example, $18,000.00 of PIE income across five years taxed at 28% instead of 17.5% costs $1,890.00, because the 10.5 percentage point gap applies to every dollar. At the widest gap available, 28% against 10.5%, the same PIE income would cost $3,150.00.

Does a refund include the growth I missed?

No, and that is the part people miss. The tax was deducted from your fund, so it never earned anything. On the worked example the $1,890.00 overpaid would have grown to $2,052.02 at 5.00%, meaning $162.02 of growth is gone even after a full refund. The longer the wrong rate ran, the larger that residual loss, which is why fixing the rate today matters more than recovering the history.

Where is a wrong PIR most likely to be sitting?

KiwiSaver, because it was often opened years ago at a student or first-job income level and never revisited. A rate set at 10.5% when you were 19 keeps running at 10.5% at 40 unless you change it. Employer-arranged sign-ups and schemes joined by default are the other common source, since a rate frequently gets applied without the member choosing one.

How is the correct PIR worked out?

It uses the last two income years and takes the more favourable result. You qualify for 10.5% if in either of those years your taxable income was $15,600 or less and your taxable income plus PIE income was $53,500 or less. You qualify for 17.5% if your taxable income was $53,500 or less and the combined figure was $78,100 or less. Otherwise the rate is 28%. Note that PIE income counts in the test, so a large KiwiSaver return can push you up a band.

Is the PIR the same as my income tax rate?

No. There are only three prescribed investor rates, 10.5%, 17.5% and 28%, and the top one is a cap. Income tax rates rise to 39%. Someone on a 33% marginal rate has a 28% PIR, which is the entire reason a PIE is attractive to higher earners. Assuming the two are the same is a common way people end up on the wrong rate in both directions.

How do I fix my PIR?

Tell each provider directly. It is usually a single field in the provider's app or online account, and it takes minutes. Inland Revenue also notifies providers where it believes a rate is wrong, but you should not rely on that catching everything, particularly across multiple providers. If you hold a KiwiSaver account, a managed fund and a PIE savings account, all three need the same rate.

Platform Switching Cost Calculator NZ 2026/27

What does it cost to switch investment platforms?

On the worked example, $308.05 on an $80,000.00 portfolio, which is 0.385% of it. Only $159.92 of that is charged to you as spreads. The largest single component is $148.13 for ten days out of the market, which is 48.09% of the total and appears on no invoice anywhere.

What is the cost of being out of the market?

It is the growth your money would have been expected to earn while it sat in cash between selling and buying. On the worked example, ten days at a 7.00% expected return costs $148.13 on $80,000.00. It is not charged by anyone and it is real, and at longer transfer times it dominates everything else: at thirty days it is 73.57% of the total cost.

Is the time out of the market a certain cost?

No, and this is worth being honest about. It is an expected cost based on an average return, but over ten days the market is roughly as likely to fall as rise, in which case being out would have helped you. Treat it as the fair price of the risk rather than a bill you will definitely pay. What is certain is that you have no exposure during that window, in either direction.

How long does it take to pay back a switch?

On the worked example, 0.96 years. A $308.05 cost against an annual saving of $320.00 from a 0.40% lower fee repays itself in just under a year, and every year after that is clear gain. By year five you are $1,291.95 ahead. If you intend to stay invested for decades, a payback period of a year or two is close to irrelevant.

Can I move investments without selling them?

Sometimes, and it is the first thing to ask. A transfer in specie moves the holdings themselves rather than cash, which removes both spreads and all of the time out of the market. It is not always available, it depends on whether both platforms hold the same products, and it can take longer in elapsed time while leaving you invested throughout. Set the days out to zero here to see what it would be worth.

Does the size of the portfolio change the answer?

Not the payback period, if every cost and the saving are percentages. Both scale together, so the answer holds at any size. A fixed exit fee is the exception: it is a large percentage of a small portfolio and a trivial one of a large portfolio, so a fixed charge makes switching relatively more expensive for smaller investors.

What if I have to convert currency as well?

Add it, because it can be the largest explicit cost. Moving between platforms that hold assets in different currencies means converting, and a conversion charge of 0.60% on a large balance dwarfs a spread of 0.10%. Enter the amount actually being converted rather than the whole portfolio, since only part of it may need to move currency.

Is switching worth it for a small fee saving?

It depends on the payback period and how long you will stay. The cost is paid once and the saving repeats every year, so even a modest saving wins over a long horizon. What makes a switch a poor idea is doing it repeatedly, since each move pays the full cost again, or switching to a fund that is cheaper but holds something different from what you actually wanted.

Rebalancing Threshold Calculator NZ 2026/27

How often should I rebalance my portfolio?

Far less often than most people assume. On the worked example a 70/30 portfolio with a 3.50 percentage point return gap takes 7.6 years to drift five points away from target. An annual calendar review trades 7.6 times more often than that band requires, and buys a reduction in maximum drift from 5.00 points to 0.69 points.

Is threshold rebalancing better than calendar rebalancing?

It trades far less and allows more drift, so which is better depends on which you care about. On the worked example a five point band needs 0.13 rebalances a year against 1.00 for an annual schedule, costing $23.82 against $180.00 in trades over thirty years. The honest summary is that a calendar schedule is doing work a threshold policy shows is not needed.

How long does a portfolio take to drift five percent?

On the worked example, 7.6 years. Drift is driven by the gap between the two sides' returns rather than by their level, and a 7.00% growth return against a 3.50% defensive one is a gap of only 3.50 points a year applied to a shrinking minority of the portfolio. A one point band breaches in 1.45 years and a ten point band in 16.21 years.

What does a monthly rebalance actually achieve?

On the worked example it holds maximum drift to 0.06 percentage points, at the cost of twelve rebalances a year and $2,160.00 of trading over thirty years. Quarterly holds it to 0.17 points at $720.00, and annually to 0.69 points at $180.00. Whether tightening drift from 0.69 to 0.06 points is worth twelve times the trading is the question, and for most portfolios it plainly is not.

Can I rebalance without selling anything?

If you are still contributing, yes, and it is the best available answer. Directing new money to whichever side has fallen behind corrects drift with no sale, no trading cost on the sale side and no realised gain. For anyone contributing regularly to KiwiSaver or a fund, contributions alone often keep a portfolio inside a five point band indefinitely, which makes this whole comparison academic.

Does rebalancing trigger tax in New Zealand?

Usually not on the sale itself for a long-term investor, since New Zealand does not have a general capital gains tax and a genuine long-term holder is not taxed on the gain when selling shares. That makes rebalancing meaningfully cheaper here than in countries where every sale is a taxable event, and it means overseas guidance about rebalancing tax costs does not transfer. Frequent trading can change your tax position, so if you trade often rather than invest, take advice.

Does a wider return gap change the answer?

Substantially, because drift is driven entirely by the gap. Doubling the gap roughly halves the time to breach any given band. This is why the calculation is worth running with your own expected returns rather than taking a rule of thumb, and why a portfolio of two similar growth assets almost never needs rebalancing while a growth and cash split needs it more often.

Does this model market volatility?

No. It applies steady returns to both sides, so drift accumulates smoothly. Real markets move in jumps, and a sharp fall can breach a band in weeks rather than years, which is precisely when rebalancing does most of its work. Read the time to breach as the pace of drift in ordinary conditions, and treat a large market move as its own trigger regardless of what the calendar says.

Repatriation Cost Calculator NZ 2026/27

What does it cost to invest offshore and bring the money back?

Both conversions, not just the one you notice. On the worked example a 0.60% fee at each end is a round-trip cost of 1.196%, or $598.20 on $50,000.00. That is the fee cost alone, before any brokerage and before the exchange rate has moved at all, and most tools only model the entry half of it.

Is the round trip just double the entry fee?

Almost, and not exactly. Two 0.60% fees give 1.196% rather than 1.20%, because the second fee applies to an amount already reduced by the first. The difference is small at these rates and grows as the fees do. The calculation here compounds them properly rather than adding them.

How much does the investment need to gain to break even?

On the worked example, 1.211% before anything else. That is more than the 1.196% cost, because the gain has to be made on the reduced amount that actually reaches the market. It is a low hurdle over a long holding period and a meaningful one over a short one.

Does the holding period change the cost?

It changes what the cost is worth, which is what matters. The round trip is a one-off charge, so on the worked example 1.196% is 1.196% a year if you hold for one year, 0.239% a year over five, and 0.060% a year over twenty. The fee does not change; the number of years you spread it across does.

Why does the dollar cost grow with the holding period?

Because the exit fee is charged on a balance that has grown. On the worked example the round trip costs $640.07 against a fee-free trip after one year and $2,314.85 after twenty, even though the percentage cost is unchanged at 1.196%. The percentage is the honest measure; the rising dollar figure is just compounding applied to it.

Should I avoid offshore investing because of this?

Not on these numbers. A round-trip cost of 1.196% spread over a decade is 0.120% a year, which is small against the diversification of holding assets outside a market that is a fraction of a percent of global value. The argument this calculation genuinely supports is against moving in and out repeatedly, since each round trip pays the full cost again.

Does the exchange rate matter more than the fees?

Usually by a wide margin. A 1.196% round-trip fee is dwarfed by a currency that moves five or ten percent between your entry and exit, in either direction. Set the two rates apart on this page to see it. The difference is that the fee is certain and one-directional while the currency move is uncertain and can help as easily as hurt.

Is a New Zealand fund holding foreign shares cheaper?

On the conversion question, yes, because you buy and sell it in New Zealand dollars and never convert anything yourself. The fund does its own currency management inside, at institutional rates, and the cost of that sits in its fee. Whether that ends up cheaper overall depends on the fee and on your tax position, which is a comparison on total cost of ownership rather than on conversion charges alone.

Seller's Discretionary Earnings Calculator NZ 2026/27

What is seller's discretionary earnings?

SDE is the total financial benefit a single owner-operator takes from a business in a year, before their own remuneration and before financing and non-cash charges. On the worked example it is $411,500.00, built from reported profit of $185,000.00 plus $85,000.00 of owner salary, $14,500.00 of personal expenses, $38,000.00 of interest, $48,000.00 of depreciation and amortisation, $23,000.00 of one-off items and $18,000.00 of above-market related party rent. It is the figure most small business sales are priced from in New Zealand.

What is the difference between SDE and EBITDA?

SDE includes the owner's remuneration; EBITDA does not. SDE suits owner-operated businesses where the buyer will replace the owner and take the salary themselves. Adjusted EBITDA suits businesses large enough to be run by employed management, because it already carries the cost of that management. On the worked example SDE is $411,500.00 and adjusted EBITDA is $291,500.00, the difference being the $120,000.00 market wage for the owner's role. Using the wrong one with the wrong multiple is the most common valuation error in small business sales.

Is my business actually profitable once I pay myself properly?

On the worked example, yes, and more profitable than the accounts suggest. Reported profit before tax is $185,000.00. Once the personal expenses, the one-off items and the above-market rent are stripped out and a full $120,000.00 market wage is charged instead of the $85,000.00 actually taken, true profit before tax is $205,500.00. That is $20,500.00 higher than reported. The result runs the other way when an owner has been paying themselves well below market, which is the more common case.

What multiple of SDE do small businesses sell for in New Zealand?

Small owner-operated businesses commonly transact somewhere around two to three times SDE, with the position in that range driven by how dependent the business is on the owner, the quality and durability of the customer base, whether the earnings are growing, and the strength of systems and staff. The worked example uses 2.5, giving $1,028,750.00. Treat any multiple as indicative only: it is a rule of thumb from observed transactions rather than a published standard, and the right figure for a specific business comes from a valuer who has seen comparable sales in that sector.

Can I add back my vehicle and personal expenses to SDE?

Yes, where they are genuinely discretionary to you and would not continue under a new owner: the private portion of a vehicle, personal travel, a family member on the payroll who does not work in the business. Two cautions. Everything you add back must be evidenced, because a buyer's accountant will ask for the detail line by line. And claiming a deduction for a private expense in the first place is a separate issue with Inland Revenue, so an add-back schedule can amount to a written record of it.

How do I treat rent paid to my own trust or company?

Normalise it to market rent. On the worked example the business pays $96,000.00 to a related party against a market rent of $78,000.00, so $18,000.00 is added back because it is really a distribution to the owner rather than a cost of the business. If you pay below market the adjustment goes the other way and reduces SDE, which surprises owners who have kept the rent artificially low. A buyer will make that adjustment whether or not you do, so making it yourself is simply better preparation.

What one-off items can I add back?

Genuinely non-recurring costs: a legal dispute, storm damage not covered by insurance, a failed system implementation, redundancy from a restructure that is complete. The test is whether a new owner would face the same cost next year. Be disciplined, because this is the line buyers challenge hardest. If something similar has appeared in two of the last three years it is not a one-off, it is the cost of being in your industry, and describing it otherwise damages your credibility on every other add-back.

Should I use SDE or EBITDA when selling my business?

Use SDE if the business is genuinely owner-operated and the buyer will step into your role. Use adjusted EBITDA if the business already runs with employed management and could continue if you left tomorrow. The second commands a higher multiple precisely because it carries less key person risk. If your SDE is large but your adjusted EBITDA is thin, that gap is telling you the business is really a well-paid job, and the most valuable preparation before a sale is reducing how much of it depends on you.

Sustainable Growth Rate (SGR) Calculator NZ 2026/27

What is the sustainable growth rate?

The sustainable growth rate is the fastest a business can grow its sales using only retained earnings, without issuing new equity and without changing its financial leverage. It was formalised by Robert Higgins and is calculated as return on equity multiplied by the retention ratio. On the default figures, an ROE of 21.19% and a retention ratio of 63.38% give a sustainable growth rate of 13.43%.

What is the formula for sustainable growth rate?

SGR equals ROE multiplied by b, where b is the retention ratio, being the share of profit kept in the business. A compounding variant, b times ROE divided by one minus b times ROE, is also used and gives a slightly higher figure because it recognises that retained earnings themselves start earning during the year. On the defaults the simple form gives 13.43% and the compounding form gives 15.52%.

Why does taking drawings reduce the growth I can fund?

Because growth is funded by equity, and retained profit is the only source of equity a private business normally has. Every dollar taken out is a dollar unavailable to fund the extra stock, debtors and equipment that growth requires. On the defaults, drawings of $52,000.00 out of $142,000.00 of profit leave a 63.38% retention ratio. Taking the full profit out would set the retention ratio to zero and the sustainable growth rate to zero, however profitable the business appeared.

What happens if I grow faster than my sustainable growth rate?

You have to fund the difference externally, and if you do not, the business runs short of cash. That is overtrading: growing profitably into insolvency. On the defaults, growing at 22% against an SGR of 13.43% requires roughly $319,000.00 of additional assets to support $506,000.00 of extra sales, while retained earnings supply only $90,000.00, leaving a funding gap of about $229,000.00 to be raised, borrowed, or found by shortening the cash cycle.

What are the DuPont components of ROE?

Return on equity decomposes into net margin multiplied by asset turnover multiplied by the equity multiplier. On the defaults those are 6.17%, 1.5862 and 2.1642, which multiply to the 21.19% ROE. The decomposition matters because it shows which lever to pull: a business with weak ROE from thin margins needs a pricing answer, while one with weak ROE from low asset turnover needs to use its assets harder, and those are entirely different problems.

Is a high sustainable growth rate always good?

Not necessarily, because one of the ways to raise it is to increase leverage. The equity multiplier sits inside ROE, so a business that borrows more will show a higher ROE and a higher SGR while also being more fragile. Growing at a rate that only works because of high gearing is not sustainable in any ordinary sense of the word. Read the SGR alongside your debt to equity ratio rather than on its own.

How do I increase my sustainable growth rate?

Four levers, in rough order of preference. Improve net margin, which raises ROE without adding risk. Improve asset turnover by getting more sales from the same assets, usually by reducing debtors and stock. Retain more profit by taking less out. Or increase leverage, which works arithmetically but raises risk and is the only one of the four that makes the business more fragile rather than stronger.

Does the sustainable growth rate apply to small New Zealand businesses?

The logic applies directly, and arguably more forcefully than to large firms, because a small private company cannot easily raise equity. Where large listed companies can issue shares to fund growth beyond their SGR, most New Zealand SMEs have exactly two options: retain profit or borrow. That makes the retention ratio a real strategic choice rather than a technicality, and it is why the trade-off between owner drawings and growth capacity is one of the most consequential decisions a small business owner makes.

Time to First $100,000 Calculator NZ 2026/27

How long does it take to save your first $100,000?

It depends entirely on your starting balance, how much you contribute each month, and your investment return. For example, starting from $10,000 and contributing $600 a month into a Growth fund earning 4.5% a year, it takes about 9 years and 6 months. Starting from zero with $300 a month in a Balanced fund earning 3.5%, it takes about 19 years and 5 months. Enter your own figures in the calculator above for your personal timeline.

Why is the first $100,000 considered the hardest?

In the early years, almost all of your balance growth comes from your own contributions, because there is not yet enough invested for compounding returns to add much in dollar terms. Once you pass roughly $100,000, the same percentage return generates a much larger dollar amount each year, so the balance starts to grow faster even if you keep contributing the same amount. This is why many people find the second $100,000 arrives noticeably faster than the first.

What return rate should I use?

This calculator offers four presets based on the Financial Markets Authority's standard KiwiSaver projection assumptions, net of fees and after the top 28% prescribed investor rate: Conservative 2.5%, Balanced 3.5%, Growth 4.5% and Aggressive 5.5%. These are the same long-run assumptions KiwiSaver providers must use in your annual statement projections, so they are a reasonable planning starting point, not a guarantee of future returns. You can also enter a custom rate if you want to test a different assumption.

Does this include KiwiSaver employer and government contributions?

Only if you include them in the monthly contribution figure you enter. For an employee, a realistic monthly figure is your own contribution (commonly 3.5% of gross pay from 1 April 2026) plus your employer's matching 3.5%. The $260.72 maximum annual government contribution works out to about $21.73 a month on average if you are eligible, so you can add that too if you want a fuller picture. This calculator does not add these automatically, since contribution rates and eligibility vary by person.

What is the difference between contributions and growth in the result?

Contributions are simply the money you and, where relevant, your employer put in over the period. Growth is the difference between your starting balance plus contributions and the final $100,000, meaning it is the investment return generated along the way, after the fund's assumed fees and tax. Splitting the total this way shows how much of your first $100,000 you actually saved yourself versus how much the market did for you.

Does compounding really make that much difference?

Yes, and the effect grows over longer periods. The calculator also shows how long the same monthly contributions would take to reach $100,000 at a 0% return, purely from your own money with no investment growth at all. The gap between that figure and your chosen return rate is the time compounding saves you. For a saver reaching $100,000 in under 10 years, compounding at a Growth-fund return can shave two to three years off the equivalent 0% timeline; for a longer 20-year saver in a Balanced fund, the saving can stretch past eight years.

Is this the same as a full KiwiSaver retirement projection?

No. This calculator answers one specific question, the time to a single $100,000 milestone, using a constant monthly contribution and a constant return. A full retirement projection needs to account for salary growth, contribution rate changes, fund switches over time and a much longer horizon. Our KiwiSaver Retirement Projection Calculator models that fuller picture through to retirement age.

What if my monthly contribution or return changes over time?

The calculator assumes a constant monthly contribution and a constant annual return for simplicity, since that gives a clear, explainable answer to a single milestone question. In real life your income, contribution rate and fund choice will likely change. Re-run the calculator whenever your circumstances change meaningfully, for example after a pay rise, a change in your KiwiSaver contribution rate, or a fund switch, to get an updated estimate.

Tracking Difference Calculator NZ 2026/27

What is tracking difference?

The gap between what a fund returned and what its index returned over the same period. On the worked example a fund returned 8.75% against an index return of 9.20%, so the tracking difference is -0.45%. That figure is the fund's total cost of ownership, and it is the honest measure of what holding it cost, because it captures everything rather than only the published fee.

Is tracking difference the same as the fee?

No, and the gap between them is the point. On the worked example the fund's stated fee is 0.30% while its shortfall against the index is 0.45%, so the real cost is 1.50 times the advertised one. The extra 0.15% is $75.00 a year on $50,000.00 and appears in no fee table anywhere.

Can a cheaper fund cost more?

Regularly, and that is the main reason to run this. On the worked example Fund B charges 0.20% against Fund A's 0.30%, so it wins every fee comparison. Its shortfall against the index is 0.60% against Fund A's 0.45%, so it costs 0.15% a year more to own. Over twenty years on $50,000.00 that is $4,940.93, and choosing on the fee picks the wrong fund.

What causes a shortfall beyond the fee?

Trading costs when the index changes its constituents, cash held for redemptions that is not earning the index return, sampling where a fund holds a subset rather than every constituent, foreign withholding tax on dividends that the fund cannot fully recover, and the spread paid when buying and selling. None of these appear in a management fee and all of them come out of your return.

Can a fund beat its index?

Yes, and it happens more often than people expect. Revenue from lending out the fund's securities can offset part or all of the costs, and a fund's tax position can be better than the index assumes. When the tracking difference is smaller than the fee, the fund is recovering costs somewhere, and a fund that consistently beats its index after fees is doing something worth understanding rather than something suspicious.

How many years should I look at?

At least three, and preferably five. A single year of tracking difference contains a large amount of noise from the timing of index changes and cash flows in and out of the fund. Run each period separately rather than averaging them, because a fund that lags consistently across every period is telling you something a one-year figure cannot.

Where do I find the index return?

The fund's own factsheet almost always shows the benchmark return next to the fund return, which is the easiest and most reliable source because it guarantees the same period and the same basis. Check that the benchmark named is the one the fund actually tracks, and that the currency and hedging basis match, since a mismatch measures the currency rather than the fund.

Does tracking difference predict future costs?

Better than a fee does, but it is still a past measurement. The structural causes, such as sampling, withholding tax treatment and securities lending policy, tend to persist, which is why a consistent pattern across several periods is informative. A single period is not a forecast, and the projection on this page assumes the measured cost continues, which is an assumption rather than a prediction.

Windfall Allocation Calculator NZ 2026/27

What should I do with an inheritance or bonus?

Rank every option by the return it delivers. On the worked example a $50,000.00 windfall goes $8,000.00 to a credit card at 19.95%, $15,000.00 to top up the emergency fund, $12,000.00 to a car loan at 9.50% and $15,000.00 to the mortgage at 6.50%. That plan returns $4,063.50 in the first year, or 8.13%, against $2,650.00 if it were all invested.

Is repaying debt better than investing?

Wherever the debt rate is above your after-tax investment return, yes, and it is not close. Repaying a debt returns exactly its interest rate, guaranteed and untaxed. On the worked example the investment return after fees and PIE tax is 5.30%, so every debt listed beats it, including the mortgage at 6.50%.

Why does the emergency fund come before the mortgage?

Because its job is not to earn a return. Without a buffer, the next unexpected expense goes onto a credit card at 19.95%, which immediately undoes the repayment you just made. The emergency fund is what stops you re-borrowing at the worst rate available, so it sits ahead of any debt cheaper than that.

Should I just put it all on the mortgage?

It is a reasonable instinct and usually not the best result. On the worked example putting the whole $50,000.00 against the mortgage returns $3,250.00 in the first year, against $4,063.50 for the ranked plan. The difference is that the plan clears higher-rate debt first, and the mortgage is normally the cheapest debt anyone has.

How do I compare a debt rate with an investment return?

Put both on an after-tax basis. Repaying debt is untaxed, so a 6.50% mortgage returns a full 6.50%. An investment returning 7.00% gross pays a fund fee and PIE tax, netting 5.30% on the worked example. Comparing 7.00% against 6.50% gives the wrong answer; comparing 5.30% against 6.50% gives the right one.

Should I keep some of it to spend?

A deliberate amount is better than an accidental one. A plan with nothing in it for you is the kind people abandon, after which the whole windfall drifts into ordinary spending. Set the amount off the top, allocate what remains by return, and the decision stays intentional rather than becoming a slow leak.

What if the rates are close together?

Then the arithmetic is not really deciding it and the non-financial factors legitimately can. Debt repayment is certain while an investment return is not, which argues for debt where the rates are similar. Against that, money invested stays accessible while money paid off a mortgage generally does not without redrawing.

Can I always repay a mortgage early?

Not always without cost. Fixed-rate loans commonly restrict early repayment or charge a break fee, which can remove the advantage entirely for the fixed portion. Many lenders allow a limited lump sum each year without penalty, and revolving or offset portions are usually unrestricted. Check what your loan permits before allocating anything to it.

Work in Progress (WIP) Calculator NZ 2026/27

What is work in progress in a contracting business?

Work in progress, or WIP, is work you have physically performed but have not yet invoiced. It sits in the gap between doing the job and being allowed to bill for it, and it is funded entirely out of your own cash. You have already paid the wages, bought the materials and settled the subcontractor claims, but no invoice has been issued, so nothing is on its way back. WIP is one of the two main reasons a profitable contracting business can run out of money, the other being slow payment of invoices that have been issued.

How do you value work in progress?

There are two valuations and both are useful. At cost, WIP is the labour, materials and subcontractor cost you have sunk into unbilled work, which is the cash you are actually out of pocket. At sell price, WIP is the contract value multiplied by the percentage complete, less what you have already claimed, which is the revenue you have earned but not billed. The sell price figure is larger because it includes the margin, and it is the one that tells you what is available to invoice.

What does over-claimed and under-claimed mean?

Under-claimed means you have done more work than you have billed, so there is revenue sitting unclaimed. It is money you have earned and are entitled to, and it usually just needs an invoice raising. Over-claimed means you have billed ahead of the work, which is good for cash today but is a liability, because you still owe the client that work. An over-claimed position can make a business look healthier than it is: the cash in the bank belongs to work you have not done yet.

Why does work in progress cause cash flow problems?

Because the costs are paid long before the revenue arrives. Wages go out weekly or fortnightly, material suppliers want paying on the 20th of the following month, and subcontractors claim monthly. Meanwhile the invoice for that work might not be issued for three weeks and then sits on 30 day terms. On the default figures, $22,600 of unbilled revenue is 6.9 days of turnover, and adding a 21 day invoicing lag means roughly 27.9 days pass before that work even becomes a receivable, let alone gets paid.

How do I reduce the cash tied up in WIP?

Invoice more often and invoice faster. Moving from monthly to fortnightly claims halves the average age of unbilled work on its own. Beyond that, agree a claim schedule in the contract so billing points are defined rather than negotiated each month, price and agree variations before doing the work rather than after, ask for a deposit or mobilisation payment on larger jobs, and raise the invoice the day the claim period closes rather than when someone gets to it. Most WIP problems in small businesses are administrative rather than commercial.

Should WIP be valued including GST?

No. Work entirely in GST-exclusive figures. The GST on an invoice is collected for Inland Revenue rather than earned, so including it overstates both the value of your WIP and the margin you appear to be making. Note separately that GST becomes payable based on when you invoice, which is another reason unbilled work distorts the picture: revenue you have earned but not invoiced has not yet created a GST liability.

How does percentage complete get manipulated?

Usually not deliberately, but optimistically. The two common errors are measuring by cost consumed rather than work delivered, which flatters a job that is running over budget, and treating materials delivered to site as progress, which they are not until they are installed. If you assess a job at 62% complete because you have spent 62% of the budget, you are not measuring progress at all, you are measuring spend. Assess against the physical work, then compare that with the spend, because the gap between the two is your early warning that a job is going wrong.

What is the difference between WIP and accounts receivable?

Receivables are invoices you have issued and are waiting to be paid. WIP is work you have done and have not yet invoiced, so it sits one stage earlier in the cycle. Both consume cash, but only receivables show up as a debtor in most small business accounting systems, which is exactly why WIP gets overlooked. A business can have clean debtor days and still be starved of cash because a month of completed work has never been billed.

Capped Percentage Fee Effective Rate Calculator NZ 2026

At what income does a capped percentage fee start to bite?

Divide the cap by the rate. A $1,500 cap on a 1 percent fee is reached at exactly $150,000 of income, because 1 percent of $150,000 is $1,500. Below that point the cap is irrelevant and you pay the full percentage. At that point and above it you pay $1,500 no matter how much more you earn, so every extra dollar of income is charged nothing at all. The crossover is the single most useful number in any capped fee, and it is rarely quoted alongside the headline rate.

Why does the effective rate fall as I earn more?

Because the numerator stops growing and the denominator does not. Once the cap applies, the fee is a fixed amount and the effective rate is that fixed amount divided by your income, which shrinks with every dollar you add. On a $1,500 cap, someone earning $150,000 pays 1 percent, someone earning $300,000 pays 0.5 percent, and someone earning $500,000 pays 0.3 percent. The headline rate is therefore the highest rate anyone pays, not the rate everyone pays.

Does GST change the comparison?

It depends on whether you are GST registered. A fee quoted as a percentage plus GST costs a registered business the exclusive amount, because the GST is recovered in the GST return. For someone not registered, the GST is a real cost and the effective rate is 15 percent higher than the headline suggests. This calculator reports both, because a quoted rate that omits GST is not comparable with one that includes it, and services quote it both ways.

Is a percentage fee charged on income or on profit?

Almost always on income received, not on profit. That distinction matters most to businesses with high revenue and thin margins, where a percentage of income can be a large share of what is actually earned. When comparing a percentage fee with a fixed fee, put both against the same base, and check whether the percentage is charged on the GST-inclusive or GST-exclusive amount, because on a $100,000 turnover that difference is worth $150 at a 1 percent rate.

Is the fee itself tax deductible?

A fee incurred in earning business income is generally deductible, which reduces its real cost by your marginal tax rate. A $1,500 fee costs a sole trader on the 33 percent rate about $1,005 after the deduction, and less again if the GST is recovered. That does not make the fee free, and comparing two services on their after-tax cost gives the same ranking as comparing them before tax, but it does change what you should budget.

Drawings vs Deductible Expenses Calculator NZ 2026

Are drawings a business expense in New Zealand?

No. For a sole trader, drawings are simply you moving your own money from one place to another, and they reduce your taxable profit by nothing at all. The business is not a separate person from you, so paying yourself is not a transaction between two parties, it is a transfer within one. This catches people out because drawings look exactly like a wage in a bank statement: a regular payment out of the business account. The test is whether the payment was incurred in earning the income. A wage paid to someone else was. A payment to yourself was not.

So what actually reduces my tax?

Costs incurred in earning your income: materials, subcontractors, tools, vehicle running costs at the business share, home office costs, insurance, accounting fees, software, professional subscriptions. Each one reduces taxable profit by its amount, and therefore reduces tax by its amount multiplied by your marginal rate. That is the whole mechanism. A deduction is worth your marginal rate, not its face value, so it never makes an unnecessary purchase free, and drawings do not enter the calculation in either direction.

How much can I safely take out of my business?

Your profit less the income tax and ACC levies on it, and less anything you owe for GST if you are registered. Everything above that line is money you will need back. The difficulty is timing rather than arithmetic: profit is earned all year but the tax on it falls due months after the year ends, so a business can be solvent and still be spending money it has already committed. Setting aside a fixed percentage of every payment received, into an account you do not touch, is the standard defence and it works.

Is it different if I have a company?

Yes, substantially, and this calculator does not model it. A company is a separate legal person, so money you take from it is a shareholder salary, a dividend, or a loan recorded in your shareholder current account, each with its own tax treatment. A shareholder-employee salary is deductible to the company and taxable to you; an overdrawn current account can attract fringe benefit tax or deemed interest. If you operate through a company, the questions this page answers are the wrong questions for you and you should take specific advice.

What if I drew more than my profit?

You are living on capital, working capital, or money set aside for tax, and none of those is income. Drawing more than your profit does not create a tax deduction or a loss; the tax on the profit you did make is unchanged and still due. It is worth separating the two questions: whether the business made money, which is the profit line, and whether you took more out than it made, which is a solvency question. This calculator answers both, but they have nothing to do with each other and the tax bill only responds to the first.

NZ Grocery Budget Calculator 2026

How much should a family of four spend on groceries in NZ?

A New Zealand family of four (two adults, one teenager, one child) at a moderate spending level typically spends approximately $280 to $300 per week on food. At a basic/budget level, this drops to around $200 to $220 per week. At a liberal level (more premium products, dining-quality ingredients), it rises to $380 to $420 per week. These figures are based on home-prepared food and do not include takeaways, eating out, or non-food grocery items like cleaning products and toiletries.

Is it cheaper to be vegetarian in New Zealand?

Generally yes. A vegetarian diet in New Zealand is typically about 10% cheaper than a standard diet because plant proteins (beans, lentils, tofu, eggs) are cheaper than meat. A vegan diet can be around 15% cheaper if you focus on whole foods, though specialty vegan products (plant milks, vegan cheese, meat alternatives) can increase costs. A gluten-free diet is typically 20% more expensive due to the premium on gluten-free products, and an organic diet is approximately 40% more expensive.

Why are groceries more expensive in some NZ regions?

Grocery prices in New Zealand vary by region primarily due to freight and distribution costs. Rural and remote areas pay more because of the cost of transporting goods over longer distances. Auckland is typically 2-3% above the national average due to higher operating costs for retailers. Provincial and rural areas can be 5-8% above average. The South Island (excluding Christchurch) tends to be slightly cheaper for some produce grown locally but may pay more for imported goods.

How can I reduce my grocery bill in NZ?

The most effective strategies for reducing grocery costs in NZ include: planning meals before shopping and sticking to a list, buying seasonal fruit and vegetables from farmers markets or greengrocers (typically 20-40% cheaper than supermarkets for fresh produce), using store brands (Pams, Value, Homebrand) instead of premium brands, batch cooking and freezing portions, reducing food waste by using leftovers, buying in bulk for staples like rice and pasta, and comparing per-unit prices rather than per-item prices. The Consumer NZ Grocer app can help compare prices across retailers.

What is the Otago University food cost survey?

The University of Otago Department of Human Nutrition publishes regular food cost surveys that estimate the weekly cost of feeding individuals at different diet quality levels (basic, moderate, and liberal). The survey prices a standard basket of common NZ foods at major supermarkets. It is widely used by government agencies, social services, and budget advisors as the benchmark for food costs in New Zealand. The figures represent home-prepared food costs only and are a key reference for setting benefit adequacy and food grant levels.

Am I Paid Enough? Calculator NZ

How do I know if I am paid enough for my age in NZ?

Compare your annual pay against the published median for your age band in your region, from Stats NZ tax records. The median 30 to 34 year old in Waikato earned $62,110 in the 2024 tax year, so someone there on $70,000 is about $7,890 (13 per cent) above it. Remember the median includes part-time and part-year earners, so a full-timer should expect to sit above it.

Can this tell me what percentile my salary is in?

No, and any page that does is inventing it from an assumed distribution. Stats NZ publishes the median for each band and region, not the spread around it, so the honest statement is how far above or below the median you sit. That is also the number that matters in a pay conversation.

Why does the median include part-time workers?

The data is built from tax records of everyone with any wage income in the year, counted at what they actually received. That makes it the truest picture of what people are paid, and it means full-time workers generally sit above their band's median. Beating the median on full-time hours mostly confirms you work full-time; the size of the margin is the informative part.

Is a comparison against my age band better than against my job title?

They answer different questions. The age-and-region median says what people like you actually receive, from complete data a year in arrears. A job-title figure says what a role advertises, from whatever sample the source had. Use the tax median as the floor of the conversation and an industry figure, where a good one exists, for the role itself.

Gender Pay Gap by Region NZ

What is the gender pay gap in New Zealand?

On median annual earnings from tax records, women earned 21.3 per cent less than men in the 2024 tax year: $50,350 against $64,010. This annual-earnings gap is wider than the official hourly gap because it folds in hours worked, and part-time work is not evenly shared. In 2000 the same measure stood at 41.1 per cent.

Which NZ region has the smallest gender pay gap?

Marlborough, at 15.8 per cent on median annual earnings in 2024. The widest is West Coast at 32.8 per cent. Regional gaps reflect each region's industry mix as much as its pay practices: regions whose large employers are female-dominated sectors measure narrower.

Why is this figure different from the official gender pay gap?

The official Stats NZ figure compares median hourly earnings, isolating the rate of pay. This page compares median annual earnings of everyone with wage income, which also captures differences in hours worked and weeks worked. Both are real measurements; the annual gap answers what actually lands in accounts over a year, the hourly gap answers what an hour of work is paid.

Has the gender pay gap closed over 25 years?

On the annual-earnings measure it has narrowed from 41.1 per cent in 2000 to 21.3 per cent in 2024. The narrowing is real and slow, and it is visible in every region, though the pace differs sharply between them.

Budgeting Methods for NZ Households

What budgeting methods work best for New Zealand households?

Common approaches include the 50/30/20 split, zero-based budgeting, and the envelope or bucket method. The best one is whichever you will actually stick to.

What is the 50/30/20 budget?

It allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment, as a simple starting framework.

How do I budget on an irregular income?

Base your budget on a conservative average or your lowest typical month, build a buffer in good months, and cover essentials first.

How often should I review my budget?

Review it monthly and after any major change in income or expenses, so it stays realistic and genuinely useful.

Cost of Living by Region in NZ

How much more does it cost to live in Auckland?

In the 2023 Household Economic Survey, average weekly household spending across comparably published categories was about $1,772.20 in Auckland against roughly $1,371.20 in the cheapest broad region, around 29 per cent more. The survey holds one surprise: Wellington households average slightly more than Auckland ones, at $1,786.10. Most of the gap between the main centres and the rest is housing: the further a category sits from land, the smaller the regional difference.

Which regions does the spending data cover?

Five broad regions only: Auckland, Wellington, Canterbury, the rest of the North Island and the rest of the South Island. Stats NZ does not publish household spending for the other regions separately, so no site can honestly quote what households spend in, say, Otago specifically from this survey. For a specific area, Census housing figures for 2,210 areas are the finer-grained companion, measuring costs rather than spending.

Do higher earnings in Auckland cover the higher costs?

The two figures cannot be divided into each other, because spending is measured per household as an average and earnings per person as a median. Side by side: median individual earnings from wages were $59,950 in Auckland against $57,780 in Canterbury in the 2024 tax year, while household spending differed by more in dollar terms. Whether the premium covers the costs depends on how many earners a household has, which is exactly why the honest page keeps the figures apart.

Are these figures current prices?

The survey is triennial and these figures were collected in 2023, so treat them as proportions between regions rather than this week's prices. The relativities between regions move far more slowly than the price level does.

What Household Size Does to a Budget

Per person, more at every step of the curve. On the 2023 survey's comparable categories, a one person household spends about $791.10 a week, while each person in a two person household accounts for about $736.20: a single-person premium of about 7 per cent against a couple, and the gap keeps compounding: each person in a five person household accounts for barely half what one person alone spends. The dwelling, power, insurance and car are household costs, and the fewer people share them, the more each carries.

What does a second person add to a household budget?

About $681 a week on the measured averages, far less than doubling the one person figure, because the second person joins an already-running household. By the fifth person the marginal cost is about $-46 a week. Each additional person costs less than the one before.

Do these figures mean flatting saves money?

Yes, and they measure how much: sharing spreads the household-level costs, which are the majority of any budget, across more people. The same arithmetic is why a couple separating nearly doubles total costs, and why a retiree living alone needs well over half a couple's budget. It is the most powerful budget lever most people never think of as one.

Are bigger households in the data just richer?

They spend more in total and have higher household incomes on average, but the per-person figures fall as size rises regardless. The economies of scale are physical, one roof and one power connection shared, rather than an artefact of who earns what.

Meeting Cost Calculator NZ

How much does a one hour meeting cost?

For eight people on an average salary of $95,000 with 15 per cent on-costs, a one hour meeting costs about $420. The driver is attendee hours: cost rises in a straight line with both the number of people and the length of the meeting.

What are on-costs and why include them?

On-costs are what an employer pays beyond the salary itself: employer KiwiSaver contributions, ACC levies, and paid leave and public holidays, which are hours paid but not worked. Ignoring them understates the real cost of an hour by at least 15 per cent.

How many working hours are in a year?

The standard convention is 2,080 hours, being 40 hours a week across 52 weeks. Some organisations subtract annual leave and public holidays and use around 1,840 productive hours instead, which produces a higher hourly cost.

Is a meeting cost calculator a fair measure?

It measures the input, not the output. A meeting that costs $420 and prevents a $40,000 mistake is cheap. The figure is useful for spotting recurring meetings that nobody would authorise if the annual cost appeared on a budget line.

28/36 Rule Calculator

What is the 28/36 rule?

The 28/36 rule is a budgeting guideline for mortgage affordability. It says your housing costs (mortgage repayments, rates and insurance) should take no more than 28% of your gross monthly income, and your total debt repayments (housing plus car loans, student loans, credit cards and other debt) should take no more than 36%. The housing share is called the front-end ratio and the total debt share is the back-end ratio.

How do I calculate the 28/36 rule?

Divide your gross annual income by 12 to get gross monthly income. Divide your monthly housing costs by that figure for the front-end ratio, and divide housing plus all other monthly debt repayments by it for the back-end ratio. On $120,000 a year ($10,000 a month), housing of $2,600 is a 26% front-end ratio and total repayments of $3,300 are a 33% back-end ratio, so both sit inside the 28% and 36% limits.

Do New Zealand lenders use the 28/36 rule?

Not formally. NZ banks run their own servicing calculations using test interest rates well above the actual rate, standard living cost benchmarks and the Reserve Bank's debt-to-income settings, which cap most owner-occupier lending at six times gross income. The 28/36 rule is still a useful self-check before you apply, because a budget that fails it will usually struggle in a bank servicing test too.

70 20 10 Rule Money Calculator NZ

What is the 70/20/10 rule for money?

It is a simple budgeting guideline that divides your take-home pay into three buckets: 70% for all living costs including rent or mortgage, food, transport, bills and everyday spending, 20% for savings and investing, and 10% for extra debt repayments or giving. On take-home pay of $5,400 a month that is $3,780 for living, $1,080 for savings and $540 for debt or giving.

Is the 70/20/10 rule based on gross or take-home pay?

Take-home pay, meaning what lands in your bank account after PAYE tax, ACC, KiwiSaver contributions and student loan deductions. Using after-tax money keeps the percentages realistic, because in New Zealand the gap between gross and take-home pay can easily be a quarter of your income or more.

How does 70/20/10 compare with the 50/30/20 rule?

The 50/30/20 rule caps needs at 50% of take-home pay, allows 30% for wants and puts 20% toward savings and debt. The 70/20/10 rule lumps needs and wants together into one 70% living bucket, which suits people whose essential costs are high, a common situation in New Zealand given housing costs. Both rules put roughly 20 to 30% of pay toward your financial future, so pick the one whose buckets match how you actually spend.

Activation Rate Calculator

What is activation rate?

It is the percentage of new signups who reach the activation milestone, the moment they first experience your product's core value. Activated users are far more likely to retain and convert, making activation a leading indicator of growth.

How do I define the activation milestone?

Choose the action that best predicts a user becoming retained and paying, such as creating their first project, sending a first message or inviting a teammate. It varies by product, so pick the moment where users reliably grasp your value, and measure consistently.

What is a good activation rate?

There is no universal benchmark because the milestone differs by product. The most useful comparison is against your own history: a rising activation rate means more signups are finding value, which compounds into better retention, conversion and lifetime value.

Actual Cash Value Calculator

How do you calculate actual cash value?

Actual cash value is the replacement cost of an item today less depreciation for age and wear. Using straight-line depreciation, ACV = replacement cost x (1 - age / useful life). A 4 year old item that cost 2,000 dollars to replace new, with a 10 year useful life, has an ACV of 2,000 x (1 - 4/10), which is 1,200 dollars.

What is the difference between actual cash value and replacement cost?

Replacement cost pays what it costs to buy a new equivalent item today, with no deduction for age. Actual cash value pays that replacement cost minus depreciation, so it reflects the worn, second-hand value of what you actually lost. An actual cash value settlement is always lower than a replacement cost settlement for anything that is not brand new.

Which insurance policies pay actual cash value?

Actual cash value settlements are common on older vehicles, some contents items and indemnity-value policies. Many New Zealand house and contents policies instead offer replacement or new-for-old cover. Check your policy wording, because the basis of settlement decides whether depreciation is deducted from your payout.

Ad ROAS, CPC & CPM Calculator NZ 2026

What is a good ROAS?

It depends on your margins. A ROAS of 4, four dollars of revenue per dollar spent, is healthy for many businesses, but a low-margin product may need a higher ROAS to profit, while a high-margin or high-retention product can be profitable at a lower ROAS. Compare it to your costs.

What is the difference between CPC, CPM and CPA?

CPM is the cost per thousand impressions (being seen), CPC is the cost per click (a visitor), and CPA is the cost per acquisition (a sale or sign-up). Together they show where money is spent and how efficiently it converts into customers.

How high can my cost per acquisition be?

As high as you can afford given the value of a customer. Compare CPA to your customer lifetime value, not just the first sale. If a customer is worth far more over time, a higher CPA can still be very profitable.

Annual Contract Value Calculator

What is annual contract value?

Annual contract value is the average yearly worth of a customer contract once the total value is spread evenly across the term. It lets you compare a one year deal with a three year deal on the same yearly basis. It is widely used in SaaS and subscription businesses.

Should I include setup fees in ACV?

Usually no, if you want a clean recurring figure. One off setup or services fees inflate the first year and distort comparisons between contracts. Keep them separate and base ACV on the recurring portion of the deal.

How is ACV different from TCV?

Total contract value, or TCV, is the entire value of the contract over its full life. ACV breaks that down to a per year amount by dividing by the term in years. TCV answers what the deal is worth, while ACV answers what it is worth each year.

Annualised Return Calculator NZ

What is annualised return?

Annualised return is the steady yearly rate that would turn your starting value into your ending value over the period, with compounding. It is the same idea as a compound annual growth rate, and it lets you compare investments held for different lengths of time.

Why not just divide the total return by the years?

Because returns compound. A 50 percent total return over 5 years is not 10 percent a year; it is about 8.4 percent a year compounded. Dividing overstates the yearly rate, so annualising correctly matters when comparing investments.

Does this account for contributions?

No, this is a simple start-to-end annualised return assuming no money was added or withdrawn along the way. If you made regular contributions, the money-weighted return differs, and you would need a more detailed calculation.

APC Calculator

What is the average propensity to consume?

The average propensity to consume (APC) is the share of total income that is spent rather than saved. You work it out by dividing consumption by disposable income. An APC of 0.8 means 80 cents of every dollar of income is spent and 20 cents is saved.

How is APC different from MPC?

APC is the average share of all income that is consumed, found by dividing total consumption by total income. Marginal propensity to consume (MPC) is the share of an extra dollar of income that gets spent, found by dividing the change in consumption by the change in income. APC looks at the whole, MPC at the next dollar.

What is the relationship between APC and APS?

Income is either spent or saved, so the average propensity to consume and the average propensity to save always add up to 1. If APC is 0.8 then APS is 0.2. Because of this, APS equals 1 minus APC.

Appreciation Calculator

How do you calculate appreciation?

Appreciation compounds a starting value at an annual rate. Multiply the starting value by one plus the rate, raised to the power of the number of years. For example, $500,000 growing at 5 percent for 10 years becomes 500,000 times 1.05 to the power of 10, which is about $814,447.

What is the difference between appreciation and depreciation?

Appreciation is an increase in the value of an asset over time, such as land or shares gaining value. Depreciation is the opposite, a fall in value over time, as happens with most cars and equipment. This calculator handles appreciation, where the rate is positive.

Is property appreciation guaranteed?

No. This calculator assumes a steady annual rate, but real asset values rise and fall and can go through long flat or falling periods. Use a realistic long term rate, treat the result as a projection rather than a promise, and remember past growth does not guarantee future gains.

Apprenticeship vs Degree Calculator NZ 2026

Does an apprenticeship or a degree earn more?

It depends on the wages and the time frame. Apprentices earn from the start and avoid debt, so they are often well ahead for many years. A higher graduate salary can eventually overtake that head start, but sometimes not for well over a decade, as the crossover year shows.

What is the crossover year?

It is the year the graduate's total earnings finally catch up with and pass the apprentice's, after allowing for the study years and debt. A large salary gap brings it sooner; a small gap can push it beyond a normal working life.

What does this calculator leave out?

It uses flat wages rather than modelling pay rises, and ignores tax, job security, satisfaction and lifestyle. Real trades and graduate careers both see raises over time, so treat this as an illustrative comparison to inform a decision, not a precise forecast.

ARPA Calculator

What is ARPA?

Average Revenue Per Account is the total recurring revenue divided by the number of paying accounts, giving the average revenue each customer brings in. It measures the quality of your revenue and shows whether you serve many small accounts or fewer large ones.

How is ARPA different from ARPU?

ARPA divides revenue by accounts, while ARPU divides by individual users. They differ when an account contains multiple seats or users. ARPA suits account-based businesses; ARPU suits products measured by individual users, such as consumer apps.

Why track ARPA over time?

A rising ARPA shows you are moving upmarket or that existing customers are expanding, both of which improve unit economics. A falling ARPA warns of a drift toward smaller, less valuable accounts. Growing ARPA lifts revenue without the cost of acquiring more customers.

ARPU Calculator

What is ARPU?

Average Revenue Per User is total revenue divided by the number of users, giving the average revenue each user generates. It is widely used for products measured by individual users, such as apps, telecoms and freemium services, to gauge per-user monetisation.

What is the difference between ARPU and ARPA?

ARPU divides revenue by individual users, while ARPA divides by accounts. They differ when an account contains many users, such as a company with multiple seats. ARPU suits user-based products; ARPA suits account-based subscription businesses.

Why might ARPU fall as I grow?

Adding many low-value or free users faster than you monetise them lowers the average, which is common in freemium products during rapid growth. A falling ARPU is a signal to check whether user growth is translating into proportionate revenue.

Attrition Rate Calculator

How do you calculate attrition rate?

Divide the number of people who left during the period by the average headcount over that period, then multiply by 100. The average headcount is usually the starting number plus the ending number, divided by two. For example, 18 leavers against an average of 205 staff is an attrition rate of about 8.78%.

What is the difference between attrition rate and turnover rate?

The two terms are often used interchangeably and share the same formula. Some organisations use attrition for roles that are not backfilled and turnover for all departures, but both express leavers as a percentage of average headcount over a period, usually a year.

What is a good attrition rate?

It varies widely by industry. Many employers aim for an annual attrition rate below 10%, but hospitality and retail often run much higher while established professional firms run lower. Compare your rate against others in your sector rather than a single benchmark.

Average Contract Value Calculator

What is the difference between ACV and TCV?

ACV is the annualised value of a contract, while total contract value, or TCV, is the full value over the entire contract term. A three year contract has a TCV three times its ACV, assuming a steady yearly value. ACV makes deals of different lengths comparable.

Should ACV include one-off fees?

It is usually cleaner to exclude one-off setup or service fees so ACV reflects recurring annual value. Whatever rule you choose, apply it consistently so your averages stay comparable across periods.

Why track average contract value?

ACV helps you judge deal quality, set sales targets and decide how much effort each account warrants. Watching it over time shows whether you are winning larger or smaller deals, which informs pricing, packaging and go to market choices.

Average Fixed Cost Calculator

What is average fixed cost?

Average fixed cost is your total fixed cost divided by the number of units produced. It tells you how much of each unit's cost comes from overheads that do not change with output, such as rent, insurance and salaried wages.

Why does average fixed cost fall as output rises?

Total fixed cost stays the same no matter how many units you make, so spreading it over more units means each unit carries a smaller share. This spreading effect is why higher volumes usually lower the fixed cost per unit.

What counts as a fixed cost?

Fixed costs are the ones that do not change with the number of units produced over the period, such as rent, insurance, depreciation, and salaried staff. Costs that rise with output, like materials and hourly wages, are variable costs instead.

Average Order Value Calculator

What is average order value?

Average order value is the mean amount a customer spends in a single order or transaction. You work it out by dividing total revenue by the number of orders. It shows how big a typical purchase is.

How can I increase my AOV?

Common tactics include product bundles, volume discounts, free shipping thresholds and add on suggestions at checkout. The goal is to lift the spend per order without hurting your margin. Test changes and compare AOV before and after.

Should I include GST in AOV?

Be consistent. Use either GST inclusive or GST exclusive figures for both revenue and any comparisons. Most owners track AOV on the same basis as their reported sales.

Average Variable Cost Calculator

What is average variable cost?

Average variable cost is your total variable cost divided by the number of units produced. It measures the cost of the inputs that rise and fall with output, such as raw materials, packaging and hourly wages, expressed per unit.

How is it different from average fixed cost?

Average variable cost covers inputs that change with output, so the total climbs as you make more. Average fixed cost covers overheads that stay the same, so its per-unit figure falls as output rises. Add the two together to get average total cost.

Does average variable cost stay flat?

Not always. It can dip as you gain buying power or efficiency, then rise again if you push past capacity and pay for overtime or rush materials. This calculator gives the simple average for the volume you enter, not a full cost curve.

Basis Point Calculator

What is a basis point?

A basis point is one hundredth of one percent, or 0.01 percent, written as bps or bp. So 100 basis points equal 1 percent, and 25 basis points equal 0.25 percent. Basis points avoid confusion when talking about small changes in interest rates.

How do I convert basis points to a percentage?

Divide the basis points by 100. For example 25 basis points divided by 100 is 0.25 percent, and 150 basis points is 1.5 percent. To go the other way, multiply a percentage by 100 to get basis points.

What does a 25 basis point rate rise cost?

A 25 basis point rise is 0.25 percent. On a $500,000 balance that is 0.0025 times 500,000, which is $1,250 more interest a year before compounding. The exact figure depends on your balance and how interest is charged.

Beta Stock Calculator

How is a stock's beta calculated?

Beta equals the covariance between the stock's returns and the market's returns divided by the variance of the market's returns. In practice you line up the stock and market returns over the same periods, work out how they move together relative to how much the market moves on its own, and the ratio is the beta.

What does a beta of more than 1 mean?

A beta above 1 means the stock has been more volatile than the market: it has tended to rise more when the market rises and fall more when it falls. A beta below 1 means it moves less than the market, and a negative beta means it has tended to move in the opposite direction, which can make it useful for diversification.

What is the difference between beta and correlation?

Correlation measures the strength and direction of the relationship on a scale from minus 1 to plus 1, while beta measures the size of the response, how many percent the stock moves for each percent the market moves. Two stocks can have the same correlation with the market but very different betas if one is far more volatile.

Black-Scholes Calculator

What does the Black-Scholes model calculate?

It gives a fair theoretical price for a European call or put option, one that can only be exercised at expiry. The inputs are the current share price, the strike price, the time left to expiry, the risk-free interest rate and the volatility of the underlying. The model assumes no dividends, constant volatility and constant interest rates.

What are d1 and d2 in Black-Scholes?

They are two standardised terms the formula uses. d1 measures how far in the money the option is, adjusted for volatility and time, and N(d1) acts like the option delta. d2 equals d1 minus volatility times the square root of time, and N(d2) is the risk-neutral probability the option finishes in the money.

Does this calculator include dividends?

No. It uses the original Black-Scholes formula with no dividend yield, which suits non-dividend-paying shares and many index options. For a dividend-paying share you would lower the effective spot price or use the Merton extension, so treat the result as indicative rather than a trading quote.

Blended Rate Calculator NZ

What is a blended interest rate?

A blended rate is a single interest rate that represents a mix of debts as if they were one loan. Each rate is weighted by its share of the total balance, so a large low-rate balance counts for more than a small high-rate one. For example, 250,000 at 6.5%, 15,000 at 12.9% and 5,000 at 19.95% blend to about 7.10%.

How do you calculate a blended rate?

Multiply each balance by its rate, add those products together, and divide by the total of all the balances. Using the example above, (250,000x6.5 + 15,000x12.9 + 5,000x19.95) / 270,000 is about 7.10%, which is the weighted average rate across the three debts.

Why is my blended rate close to my biggest balance?

Because the blend is weighted by balance, not by the number of loans. A mortgage that dwarfs your other debts dominates the result, so the blended rate usually sits near the rate on your largest balance and only shifts a little for smaller high-rate debts.

Buy Now Pay Later: The Real Cost Calculator NZ

Does Buy Now Pay Later charge interest?

BNPL services like Afterpay and Laybuy usually charge no interest, which is their main selling point. The real cost comes from late fees when you miss a payment, and sometimes account or payment processing fees, which can add up over a year.

What is the real cost of BNPL?

It is the total of the late fees and any account fees you pay across a year, plus the harder-to-measure cost of overspending because purchases feel cheaper when split into instalments. This tool adds up the fees and shows them as a share of your spending.

Is BNPL bad?

Used carefully and paid on time, it can be a free way to spread a cost. The danger is juggling several plans, missing payments and racking up fees, or buying things you would not otherwise. Keep track of what you owe across all providers.

BNPL True Cost Calculator NZ

How can interest-free BNPL have an interest rate?

When you pay a fee to borrow money for a short time, that fee is equivalent to interest. A small fee on a small amount paid back over a few weeks can work out to a very high effective annual rate, even though no interest is charged.

How is the effective rate worked out?

The fee divided by the amount borrowed gives the cost for the repayment period. Scaling that up to a full year, by multiplying by 52 divided by the number of weeks, gives a simple effective annual rate for comparison with other credit.

Why does it matter?

Expressing the cost as an annual rate lets you compare BNPL fees fairly with a credit card or personal loan. A 10 dollar fee on a 200 dollar purchase over six weeks looks small but is a very high annualised rate.

Broadband Cost Calculator NZ

How do I compare broadband plans?

Compare the total cost over the contract, including setup or modem fees, the monthly price, and the value of any introductory discount. A cheap first few months can hide a higher ongoing price.

Should I switch broadband for a deal?

Work out the total over the contract, including any joining offer and the price after it ends. The calculator shows the real cost so a short discount does not mislead you.

What broadband costs are there?

A monthly fee, sometimes a setup or modem cost, and any installation. Introductory discounts reduce early months but the ongoing price is what matters most over time.

Brokerage Fee Calculator NZ

How much is brokerage in New Zealand?

Brokerage varies by platform, from a small flat fee or percentage to higher charges for full-service brokers. On small trades, even a modest fee can be a large percentage of the amount invested, so it pays to compare.

Why do fees matter more on small trades?

A flat fee is a bigger share of a small trade than a large one. A $5 fee on a $100 trade is 5%, but on a $5,000 trade it is 0.1%, so frequent small trades can be quietly expensive.

What is the break-even move?

It is how much the investment must rise just to cover the buy and sell fees before you make any profit. The higher the fees relative to the trade, the more it has to rise simply to break even.

Budget Calculator NZ 2026

What is the Budget Calculator NZ 2026?

Free NZ budget calculator with the 50/30/20 rule. Track income and expenses across needs, wants and savings. Compare your spending to NZ averages and see your monthly surplus or deficit.

Is the Budget Calculator NZ 2026 free to use?

Yes. The Budget Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Budget Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Burn Multiple Calculator

What is the Burn Multiple?

It is net cash burn divided by net new ARR over a period, measuring how many dollars a business burns to generate each dollar of new recurring revenue. A lower multiple means more efficient, less cash-hungry growth.

What is a good Burn Multiple?

Under one is excellent, one to one-and-a-half is good, one-and-a-half to two is okay, and above two warrants attention. The benchmark tightens when capital is scarce, since efficient growth becomes more valuable than growth at any cost.

Why use net figures?

Using net cash burn and net new ARR, after churn, captures the full picture rather than just gross growth. This makes the Burn Multiple hard to flatter, since a business losing revenue to churn cannot hide it behind impressive new bookings.

Buy vs Lease Commercial Premises Calculator NZ 2026

Should my business buy or lease its premises?

Leasing keeps capital free and is flexible, while buying builds equity and gives control but ties up a large deposit. On a cash basis leasing often looks cheaper, but once equity and potential capital gains are counted, buying frequently wins over the long term. This calculator compares the annual cost both ways.

Why credit back the principal when buying?

Part of each mortgage payment repays the loan and builds equity in an asset you own, which is saving rather than a cost. Subtracting that principal gives a net cost that compares fairly with rent, which is entirely an expense.

What does this model leave out?

It deliberately excludes capital gains on the property, building depreciation, and the tax treatment of interest and rent, all of which usually favour buying. It is a conservative starting point, so get advice from your accountant and bank before deciding.

Buying Power Calculator

What is buying power and how does inflation affect it?

Buying power (also called purchasing power) is the quantity of goods and services that a unit of money can purchase. Inflation reduces buying power over time: as prices rise, the same amount of money buys fewer goods. For example, if annual inflation is 3%, then $1,000 today will only buy what $744 buys now after ten years. New Zealand's long-run average CPI inflation is approximately 2 to 3% per year, though it reached above 7% in 2022 and 2023 before returning toward the Reserve Bank's 1 to 3% target band.

How is buying power calculated?

Buying power is calculated using compound inflation. The formula is: Future equivalent = Original amount x (1 + inflation rate)^years. This gives the amount needed in the future to match today's buying power. To go the other direction (what is a past amount worth today), you divide: Today's equivalent = Past amount x (1 + inflation rate)^years. For example, $1,000 in 2006 at 2.5% average annual inflation is worth $1,000 x (1.025)^20 = $1,638.62 in 2026 in nominal terms.

What inflation rate should I use for New Zealand?

For long-term New Zealand projections, the Reserve Bank of New Zealand targets CPI inflation of 1 to 3% per year, with a focus on the 2% midpoint. New Zealand's average annual CPI inflation over the past 30 years has been approximately 2.5%. For a conservative long-term estimate, 2.5% is a reasonable assumption. If you want to model recent higher inflation, use 3 to 4%. For the period 2022 to 2023, NZ CPI peaked above 7%, which has since moderated back toward the target band.

Cake Pricing Calculator

How do I price a cake?

Add up your ingredient and material cost, your labour (hours worked times your hourly rate), and your overhead, then increase that total by a profit markup. For example, 12 dollars of ingredients, 3 hours at 25 dollars, and 8 dollars of overhead gives a 95 dollar cost; a 30 percent markup makes the selling price 123.50 dollars.

What markup should I use for cakes?

Many home bakers use a markup of 25 to 50 percent on top of a cost that already pays them for their time. Wedding and occasion cakes usually sit at the higher end because of the skill and pressure involved, while simple everyday cakes sit lower. Check what comparable cakes sell for in your area and adjust.

Should I charge for my time when pricing a cake?

Yes. Labour is often the largest real cost of a cake and the one most bakers forget. Set an hourly rate for your time, count every hour of shopping, baking, decorating and cleaning, and include it in the cost before you add any profit markup, or you will effectively be working for free.

Call Option Calculator

How do you calculate the break-even on a call option?

The break-even price of a long call is the strike price plus the premium paid per share. The stock has to rise by the premium before you recover your cost. For example, a 100 dollar strike bought for a 5 dollar premium breaks even when the stock reaches 105 dollars at expiry.

What is the maximum loss on a call option?

For a long call, the most you can lose is the premium you paid, no matter how far the stock falls. If the stock finishes at or below the strike at expiry, the option expires worthless and you lose the whole premium, which is why the maximum loss equals your total cost.

How is call option profit calculated?

At expiry the option is worth its intrinsic value: the amount the stock is above the strike, times 100 shares per contract, times the number of contracts. Profit is that value minus the premium you paid. Below the strike the option is worth zero, so the loss equals the premium.

Cap Rate Calculator NZ

How do you calculate a cap rate?

Divide the annual net operating income by the property value and multiply by 100. Net operating income is the gross rent less operating costs such as rates, insurance, maintenance and management, but not the mortgage. A property earning 32,500 dollars of net income on an 850,000 dollar value has a cap rate of about 3.82 percent.

Does the cap rate include the mortgage?

No. The cap rate measures the return the property itself produces, independent of how it is financed, so mortgage interest and principal are left out. That lets you compare two properties on equal footing even when one is bought with cash and the other with a large loan.

What is a good cap rate in New Zealand?

It depends on the property type and location. Prime residential in the main centres often sits between 3 and 5 percent because prices are high relative to rent, while commercial and provincial property can run higher. A higher cap rate means more income per dollar of value but usually more risk, so weigh it against growth prospects.

Cap Table Calculator

How is a new investor's ownership calculated?

Divide the amount invested by the post-money valuation, which is the pre-money valuation plus the new money. A 2 million dollar cheque into a company worth 8 million before the raise gives a post-money valuation of 10 million and an ownership stake of 2 divided by 10, which is 20 percent.

What is the difference between pre-money and post-money?

Pre-money is what the company is worth before the new investment lands. Post-money is the pre-money valuation plus the amount raised. The share price for the round is the pre-money valuation divided by the existing share count, and the new shares are the investment divided by that price.

How much do founders get diluted in a round?

Every existing holder is diluted by the same proportion, equal to the new money divided by the post-money valuation. Raising 2 million at a 10 million post-money value dilutes everyone by 20 percent, so founders holding 80 percent before the round hold 64 percent after it.

Capital Budgeting Calculator

What does a capital budgeting calculator do?

It appraises an investment project against the four standard tests at once: net present value, internal rate of return, payback period and profitability index. You enter the upfront cost, a discount rate and the cash the project throws off each year, and it reports whether the project adds value and how quickly it pays for itself.

Should I accept a project if NPV is positive?

A positive net present value means the project earns more than your discount rate, so it adds value and passes the main test. Check the internal rate of return sits above your required return and that the payback period fits your horizon, then rank competing projects by NPV or profitability index when budgets are limited.

What is the profitability index?

The profitability index is the present value of the future cash flows divided by the initial investment. A value above 1 means the project creates value for every dollar put in, and it is useful for ranking projects when you cannot fund them all. An index of 1.14 means 1.14 dollars of value for each dollar invested.

Coast FIRE Calculator NZ

What is Coast FIRE?

Coast FIRE is the point where your invested savings are large enough to grow on their own to fund retirement, without any further contributions. You still cover your living costs from work, but you no longer need to save for retirement.

How is the Coast FIRE number calculated?

It is your retirement target divided by growth between now and retirement. The retirement target is your annual spending divided by a safe withdrawal rate. If your current investments are above the Coast FIRE number, you are already coasting.

What is a safe withdrawal rate?

A safe withdrawal rate is the percentage of a retirement portfolio you can draw each year with a good chance it lasts. A figure around 4% is often used as a starting point, though it is debated and depends on your situation.

Personal Budget Calculator NZ 2026

What is the Personal Budget Calculator NZ 2026?

Build a comprehensive personal budget for New Zealand. Track all income sources, living expenses, debt repayments, and savings goals to see your true monthly surplus or deficit.

Is the Personal Budget Calculator NZ 2026 free to use?

Yes. The Personal Budget Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Personal Budget Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

NZ Cost of Living Comparison Calculator

What is the NZ Cost of Living Comparison Calculator 2026?

Compare the true cost of living across Auckland, Wellington, Christchurch, and Hamilton. See housing, transport, food, and total expenditure differences to decide where to live in New Zealand.

Is the NZ Cost of Living Comparison Calculator 2026 free to use?

Yes. The NZ Cost of Living Comparison Calculator 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the NZ Cost of Living Comparison Calculator 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Credit Score Impact Estimator NZ

What affects a credit score in New Zealand?

The main factors are your repayment history, defaults, the number of recent credit applications, how much credit you use, and the length and mix of your accounts. Missed payments and defaults hurt the most.

How is a New Zealand credit score scaled?

The main bureaus, Centrix, Equifax and illion, score on a range up to around 1000, with higher being better. Lenders read scores in bands from below average up to excellent.

Is this calculator my actual score?

No. It is an indicative educational guide to the direction and rough size of common impacts. Your real score is set by the credit bureaus from your full file. Check it free at Centrix, Equifax or illion.

Crowdfunding Fees Calculator NZ 2026

How much do crowdfunding platforms charge?

Typically a platform or success fee of a few percent plus a payment processing fee of around 2 to 3 percent, so roughly 5 to 10 percent of what you raise in total. Some platforms only charge if you reach your goal. Always check your platform's current fee terms.

How do I set my crowdfunding goal?

Work out what you genuinely need to deliver, then raise that divided by one minus the fee rate so that fees do not leave you short. This calculator gives that figure, so your target funds the project rather than just the headline number.

Is money raised through crowdfunding taxed?

It depends on whether it is a donation, a pre-sale of a product, or income. Donations to a registered cause and genuine gifts are treated differently from sales revenue, which may be taxable and subject to GST. Check with your accountant or Inland Revenue.

DAU/MAU Ratio Calculator

What does the DAU/MAU ratio measure?

It measures product stickiness, the share of your monthly active users who are active on a typical day. A higher ratio means users return more often and have built a habit. It is a quick proxy for how engaging and essential your product is.

What is a good DAU/MAU ratio?

It depends heavily on your product type. Daily use products like messaging apps often aim for higher ratios, while weekly or monthly tools naturally sit lower. Compare against your product's expected usage rhythm rather than a single benchmark.

Should I use a single day or an average for DAU?

Use an average DAU across the month rather than one day to smooth out spikes and quiet days. This gives a more representative stickiness figure. Keep your definition of active consistent for both DAU and MAU.

Discount Calculator NZ 2026

What is the Discount Calculator NZ 2026?

Calculate any discount instantly. Enter the original price and discount amount, percentage, or final price to find the missing values. Works for any currency and any type of sale or promotion.

Is the Discount Calculator NZ 2026 free to use?

Yes. The Discount Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Discount Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Discounted Payback Period Calculator

How is discounted payback different from simple payback?

Simple payback adds up raw cash flows until they equal the cost. Discounted payback first discounts each year of cash flow back to today using your chosen rate, then counts how long they take to recover the cost. Because future dollars are worth less, the discounted payback is always equal to or longer than the simple version.

What discount rate should I use?

Use a rate that reflects your cost of capital or the return you could earn on a similar risk investment. Many businesses use a figure between their borrowing rate and their target return. A higher rate lengthens the payback period.

Does it consider cash flows after payback?

No. Like simple payback, it stops once the cost is recovered and ignores later cash flows. For a full life view of value, use net present value alongside this measure.

Disposable Income Calculator NZ 2026

What is the Disposable Income Calculator NZ 2026?

Calculate your true disposable income after all fixed and variable expenses. See how much you have left each month after bills, debt repayments, and living costs are covered.

Is the Disposable Income Calculator NZ 2026 free to use?

Yes. The Disposable Income Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Disposable Income Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Downgrade Rate Calculator

What counts as a downgrade?

A downgrade is when a customer moves to a cheaper plan or reduces their spend, such as cutting seats or dropping an add-on, without fully cancelling. Set a clear threshold and apply it consistently. Full cancellations belong in your churn rate instead.

Why does the downgrade rate matter?

Downgrades cause contraction revenue, which offsets the gains from upsell and expansion. A rising rate often warns of weakening value or pricing pressure before customers leave entirely. Tracking it helps you act early.

How do I reduce downgrades?

Strengthen onboarding so customers reach value, keep pricing fair for the value delivered, and reach out to accounts showing reduced use. Capturing the reason at each downgrade helps you fix root causes. Compare rates by segment to focus effort.

DTI Calculator NZ 2026

What is the DTI Calculator NZ 2026?

Calculate your debt-to-income (DTI) ratio to understand your borrowing position. Enter monthly debt payments and gross income. A DTI below 30% strengthens loan applications; above 40% signals risk to lenders.

Is the DTI Calculator NZ 2026 free to use?

Yes. The DTI Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the DTI Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

EBT Calculator

What is the EBT Calculator?

Calculate your business EBT (Earnings Before Tax) to measure pre-tax profitability. Useful for comparing companies across different tax jurisdictions and assessing business performance.

Is the EBT Calculator free to use?

Yes. The EBT Calculator is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the EBT Calculator made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Economic Order Quantity Calculator

What does the economic order quantity tell me?

It tells you the order size that minimises the combined cost of placing orders and holding stock. Ordering at the EOQ keeps total inventory cost as low as the model allows. It is a starting point you then adjust for real world limits.

What should I include in the holding cost?

Holding cost should cover the full cost of keeping one unit in stock for a year. That includes storage, insurance, the capital tied up, and the risk of damage or obsolescence. Leaving items out understates the cost and inflates the EOQ.

Does EOQ work with bulk discounts?

The basic formula assumes a constant unit cost, so it does not factor in price breaks. If suppliers offer bulk discounts you should compare the EOQ result against the discounted order sizes and choose the lowest total cost. Treat the EOQ as a baseline for that comparison.

Effective Annual Rate Calculator

What is the difference between nominal and effective rates?

The nominal rate is the stated annual rate before compounding is considered. The effective annual rate accounts for how often interest compounds within the year. When compounding happens more than once a year, the effective rate is higher than the nominal rate.

How do I choose the number of compounding periods?

Match it to how the product compounds. Use 12 for monthly, 4 for quarterly, 2 for half yearly, 1 for yearly and 365 for daily. The more frequent the compounding, the higher the effective rate.

Does the effective annual rate include fees?

No. The EAR reflects only interest and compounding, not establishment or ongoing fees. To compare the full cost of borrowing, look at fees alongside the effective rate.

Engagement Ring Budget Calculator NZ

How much should I spend on an engagement ring?

There is no real rule; old marketing said one to three months salary, but a sensible budget is what you can afford without debt. This calculator suggests a range from your income and savings.

Should I go into debt for a ring?

It is wise to avoid starting a marriage with debt for a ring. Saving for it, or choosing a ring within what you can afford now, keeps your finances healthy.

How long should I save for a ring?

Divide the ring budget less your current savings by what you can save each month. The calculator shows the months to reach your budget.

Equity Release vs Downsize Calculator NZ

What are my options to free up home equity in retirement?

The two main options are a reverse mortgage, which lets you borrow against your home and stay in it with the interest compounding until you sell, or downsizing, selling and buying somewhere cheaper to release the difference as cash.

Which is cheaper?

Downsizing usually costs less in pure dollars, because its cost is one-off transaction costs, while a reverse mortgage accrues compounding interest for as long as you hold it. But downsizing means leaving your home and neighbourhood.

Why does the reverse mortgage cost grow so much?

Because you make no repayments, the interest is added to the loan and compounds, so the debt grows faster each year. Over ten or twenty years it can multiply, eating into the equity left for you or your estate.

Estate Value Calculator NZ

What is included in an estate?

Your estate is everything you own less what you owe: property, savings, KiwiSaver, investments, vehicles and possessions, minus mortgages and other debts. Some assets, like jointly owned property, may pass outside the estate.

Why work out my estate value?

Knowing your net estate helps with making a will, planning how it is shared, and understanding what your family would inherit. It is a useful starting point for estate planning conversations.

Is there inheritance tax in New Zealand?

New Zealand has no inheritance or estate tax. Estate planning is mainly about a clear will, how assets are owned, and avoiding disputes, rather than tax.

Expansion Opportunity Calculator

What is ARPA?

ARPA is average revenue per account, the typical revenue a single customer generates over a period. It is found by dividing total revenue by the number of accounts. Lifting ARPA through upsell and cross-sell is the core of expansion revenue.

Who counts as an eligible customer?

An eligible customer is one with genuine room to grow, for example someone on a lower plan, below full seat use, or not yet on add-ons. Customers already at your top tier should be excluded. Counting only true candidates keeps the opportunity realistic.

Is this the revenue I will actually earn?

No, it is the full potential if every eligible account reached target. Apply your historical upsell or expansion conversion rate to turn it into a forecast. Treat the headline figure as a ceiling, not a promise.

Farm Feed Budget Calculator NZ

How do you do a feed budget?

Work out what the farm will grow over the period and what the stock will eat over the same period, both in kilograms of dry matter, and compare them. Growth is the area multiplied by the daily growth rate and the days. Demand is the stock units multiplied by their daily intake and the days. Add any feed already in store or being bought in, and the difference is your surplus or deficit.

How far ahead should a feed budget run?

Far enough that you can still do something about the answer. A budget run in autumn for the winter leaves time to buy feed, sell stock or book grazing, all of which get harder and dearer the later they are done. A budget run in the middle of a deficit tells you how bad it is and not much else. The value is entirely in the lead time, which is why the period is an input rather than fixed.

What growth rate should I use?

Your own, from your own farm and the same time last year if you have it. Pasture growth varies enormously by region, soil, season and fertility, and a national figure would be wrong almost everywhere. No default is supplied here for that reason. If you have no measurement at all, running the budget across a range of plausible growth rates tells you more than a single guess does.

Feature Adoption Rate Calculator

How do I define an active user?

An active user is someone who used your product within the period you are measuring, often defined as a login or a meaningful action. Keep the definition consistent so your adoption rate stays comparable. Count unique users rather than sessions or events.

What is a good feature adoption rate?

There is no universal benchmark because it depends on the feature and how core it is to your product. A niche feature may have low adoption yet still be valuable to a key segment. Focus on the trend and on adoption among the users the feature is meant for.

Why is my adoption rate low?

Low adoption often comes from poor discoverability, weak perceived value, or a mismatch with what users need. Improve in product prompts, onboarding and positioning, then measure again. If it stays low for the target audience, consider repositioning or removing the feature.

Final Pay Calculator NZ 2026

What is the Final Pay Calculator NZ 2026?

Calculate final pay when leaving a job in New Zealand. Works out your annual leave payout, notice pay, and redundancy. Updated for the NZ Holidays Act 2003 and 2026/27 employment rules.

Is the Final Pay Calculator NZ 2026 free to use?

Yes. The Final Pay Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Final Pay Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Gifting Calculator NZ

Is there a gift tax in New Zealand?

No, gift duty was abolished, so you can gift money without paying gift tax. However, large gifts can still affect a means assessment for the Residential Care Subsidy, which looks back at gifting over set limits.

How much can I gift before it affects aged care?

The Residential Care Subsidy assessment allows gifting up to set annual limits, with a different allowance for gifts made well before applying. Gifts above those limits can be counted back as assets. The limits are set by the rules and change, so check the current figures.

Why does gifting matter for residential care?

Because the means assessment can add back gifts above the allowed levels to your assets, gifting away assets to qualify for the subsidy can be unwound. Plan gifting carefully and get advice.

Goal Timeline Calculator NZ

How long will it take to reach my savings goal?

It depends on your target, your starting balance, how much you contribute and the interest you earn. This calculator works out the months and years to reach the goal, including the boost from interest as your balance grows.

Does interest make a big difference to the timeline?

For shorter goals the effect is small, but for larger or longer goals the interest earned along the way can shave months off the timeline, because your balance earns as it grows. A higher contribution usually has the biggest effect.

What if I cannot reach the goal in time?

If the timeline is longer than you would like, you can increase your contribution, lift your starting balance, or adjust the target. The calculator lets you test each so you can find a plan that fits your timeframe.

GRR Calculator

What is Gross Revenue Retention?

GRR measures how much of your existing recurring revenue you keep over a period, after contraction and churn but before any expansion. It is the starting MRR minus those losses, divided by the starting MRR, and it can never exceed 100 percent.

What is a good GRR?

The higher the better, since it is capped at 100 percent. Above 90 percent is considered strong, especially for businesses serving larger customers. A low GRR signals significant revenue leaking from your existing base regardless of new sales.

Why look at GRR as well as NRR?

Net retention can be lifted above 100 percent by expansion even when underlying churn is high. GRR strips out expansion to reveal pure retention, so a weak GRR alongside a healthy NRR warns that upsells are masking real churn, a fragile position.

Headcount Budget Calculator NZ 2026

Why is the year one cost of a hiring plan lower than the run rate?

Because people who start partway through the year are only paid for the part of it they are there. A role starting in month seven costs half a year in year one but a full year from then on. Budgeting on the year one figure and then being surprised the following year is one of the most common planning errors, which is why both numbers are shown here.

What on-costs should a headcount budget include?

Employer KiwiSaver of at least 3.5 percent of gross pay and the ACC work levy for your industry, both of which are cash costs on top of salary. Recruitment is a one off per hire and should be budgeted separately from the ongoing cost. Equipment, software licences and workspace also belong in a full plan, and can be entered here as a per hire setup cost.

Should I budget for people leaving as well as joining?

Yes, if the plan runs longer than a few months. Any team of size loses someone during a year, and each departure carries a recruitment cost and a period of reduced output before the replacement is up to speed. A plan that assumes nobody leaves will understate both the cost and the hiring effort required to reach the target headcount.

Home Renovation Budget Calculator NZ

How much should I budget for a renovation contingency?

A contingency of around 10% to 20% is sensible, because renovations almost always uncover surprises like hidden damage or scope changes. Older homes warrant a larger contingency.

Why do renovations go over budget?

Costs creep in area by area, hidden problems emerge once work starts, and scope grows. Building in a contingency and tracking each category against the budget helps you stay in control.

What costs go into a renovation budget?

Design and consents, demolition, building work, plumbing and electrical, fittings and finishes, and a contingency. This calculator lets you enter each and adds a contingency on top.

Honeymoon Budget Calculator NZ

How do I budget for a honeymoon?

Add the big fixed costs like flights, then daily costs for accommodation, food and activities, and a buffer for the unexpected. Dividing by the days shows the cost per day, and the total becomes your savings target.

What do people forget on a honeymoon budget?

Travel insurance, airport transfers, tips, data, and splurges like a special dinner or excursion. A buffer of 10 to 15% covers the things that always come up.

How much should we save for it?

Use the total here as your savings target and divide by the months until the trip. Saving steadily means the honeymoon is paid for before you go, not put on a card afterwards.

Hourly Rate Calculator

How do I work out my hourly rate?

Add the income you want to earn to your annual business costs, then divide by the number of hours you can actually bill in a year. The result is the minimum rate that covers both. Charging less means you are funding the gap yourself.

How many billable hours should I assume?

Far fewer than the hours you work. After admin, marketing, quoting and time off, many full time freelancers bill closer to 1,000 to 1,400 hours a year. Use a realistic figure rather than a full 2,080.

Should the rate include GST or tax?

This rate is before income tax and before GST. You still set aside tax from what you earn, and you add GST on top if you are registered. Build a buffer so tax time does not catch you short.

Inheritance Split Calculator NZ

How is an estate divided?

After debts and any specific gifts are paid, the rest of the estate is divided between beneficiaries according to the will, often equally. This calculator works out each share after debts and bequests.

What is a specific bequest?

A specific bequest is a particular gift in a will, such as a sum of money or an item to a named person, paid before the rest of the estate is shared among the residual beneficiaries.

Does this replace a will or legal advice?

No. It is a planning tool to illustrate how an estate might be shared. A clear, valid will and legal advice are what actually determine the distribution.

Credit Card Interest-Free Period Optimiser NZ

How do credit card interest-free days work?

A card advertises up to a maximum number of interest-free days, such as 44 or 55. You get the most by buying just after your statement closes, because the interest-free window covers the rest of that cycle plus the grace period before payment is due.

When is the best day to make a big purchase?

The day after your statement date. That gives the longest possible interest-free period. Buying just before the statement closes gives only the short grace period.

Do I still need to pay in full?

Yes. Interest-free days only apply if you pay the closing balance in full by the due date. Carry any balance and interest is usually charged from the purchase date.

Office vs Work From Home Cost Calculator NZ 2026

Is it cheaper to have an office or work from home?

For small teams, working from home is usually cheaper because office rent and outgoings are largely fixed while home-working costs scale per employee. As the team grows, the fixed office cost spreads over more people and can become competitive. This calculator compares the two for your numbers.

What home-working costs should I include?

A yearly stipend or allowance for power, internet and a share of home costs, plus a one-off equipment setup such as a desk, chair and monitor that you can spread over a few years. A co-working budget for occasional in-person days can be added to the stipend.

What does the comparison leave out?

It compares direct costs only. Collaboration, focus, culture, onboarding and staff preference all carry real value that is hard to price, which is why many businesses choose a hybrid model that balances cost savings against the benefits of being together.

Logo Retention Calculator

What is the difference between logo retention and revenue retention?

Logo retention counts customers as equal units, so each account is one logo. Revenue retention weights customers by how much they pay, so losing one large account hurts more than losing one small one. Tracking both gives a fuller picture.

What is a good logo retention rate?

It depends on your market and customer type. Businesses serving large enterprises often retain a very high share of logos, while those serving small businesses or consumers may see lower rates. Compare against your own trend and similar companies.

Do new customers count in logo retention?

No. Logo retention only measures whether the customers you started with stayed. New customers won during the period are excluded so the rate reflects loyalty rather than growth from acquisition.

LTV Calculator

How is SaaS LTV calculated?

Multiply the average revenue per account by your gross margin to get the monthly gross profit per customer, then divide by the monthly churn rate. Since average lifetime is one over churn, this equals the monthly gross profit times the expected lifetime in months.

Why use gross margin instead of revenue?

Because servicing customers costs money, counting revenue alone overstates their value. Applying gross margin counts only the profit a customer generates, giving a realistic lifetime value that you can sensibly compare against acquisition cost.

Why does churn matter so much?

Lifetime value depends on the inverse of churn, so small reductions in churn produce large increases in LTV. Halving monthly churn roughly doubles the average lifetime and the lifetime value, which is why retention is one of the highest-leverage things a SaaS business can improve.

Moving House Cost Calculator NZ

How much does it cost to move house in New Zealand?

It depends on distance, the size of your home and how much you do yourself, but once you add removalists, packing, cleaning, utility connections and incidentals, a typical move runs into the low thousands. This calculator builds your own tailored total with a contingency.

Why include a contingency?

Moves almost always throw up extra costs, from an extra hour of removalist time to last-minute cleaning, storage or replacing something damaged. A ten percent buffer absorbs these surprises so your budget holds up, rather than being blown on moving day.

How can I reduce moving costs?

Doing your own packing, sourcing free boxes, hiring a truck instead of full-service movers, and moving midweek or off-peak can all cut the bill. This calculator lets you compare scenarios by adjusting each category to see what saves the most.

Net Worth Calculator NZ 2026

What is the Net Worth Calculator NZ 2026?

Calculate your personal net worth in New Zealand. Enter your total assets (property, savings, investments, KiwiSaver) and liabilities (mortgage, loans, credit cards) for your complete financial position.

Is the Net Worth Calculator NZ 2026 free to use?

Yes. The Net Worth Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the Net Worth Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

No Asset Procedure vs Bankruptcy NZ

What is the No Asset Procedure?

The No Asset Procedure, or NAP, is a one-off option for people with debts between 1,000 and 50,000 dollars, no realisable assets, and no way to repay. It clears most debts after about 12 months and is administered by the Insolvency and Trustee Service.

When does bankruptcy apply instead?

Bankruptcy is generally for larger debts, over 50,000 dollars or where a NAP does not fit, or when a creditor applies. It usually lasts three years and has wider consequences for assets, travel and some occupations.

Is this financial or legal advice?

No. This is general information only. Insolvency is a serious step with lasting effects. Talk to a free financial mentor through MoneyTalks on 0800 345 123 and see the Insolvency and Trustee Service before deciding.

Notice Saver vs On-Call Calculator NZ

What is a notice saver account?

A notice saver pays a higher interest rate in return for requiring notice, often 32 or 90 days, before you can withdraw. It rewards money you can leave alone, sitting between an on-call account and a term deposit.

Is the extra interest worth it?

It depends on the rate gap and whether you can live with the notice period. The calculator shows the dollar difference a year so you can weigh the extra interest against losing instant access.

When is on-call better?

For your emergency fund or any money you might need at short notice, on-call access is usually worth the slightly lower rate. Use a notice saver for savings you have a clear plan and timeline for.

NPS Calculator

How is Net Promoter Score calculated?

NPS is the percentage of promoters minus the percentage of detractors, using all responses (including passives) as the base. With 200 responses made up of 120 promoters, 60 passives and 20 detractors, that is 60% minus 10%, an NPS of +50. The score always lands between -100 and +100.

Who counts as a promoter, passive or detractor?

Respondents answer how likely they are to recommend you on a 0 to 10 scale. Scores of 9 or 10 are promoters, 7 or 8 are passives, and 0 to 6 are detractors. Passives are not used in the subtraction but they enlarge the base, so they still pull the score toward zero.

What is a good NPS?

Any score above 0 means you have more promoters than detractors. Scores above 30 are commonly read as good, above 50 as excellent and above 70 as world class, but benchmarks vary a lot by industry, so comparing against direct competitors and your own past surveys is more useful than a universal target.

NRR Calculator

What is Net Revenue Retention?

NRR measures how much recurring revenue you retain and grow from existing customers over a period, including expansion but excluding new customers. It is the starting MRR plus expansion, minus contraction and churn, divided by the starting MRR.

What is a good NRR?

Above 100 percent is the goal, meaning existing customers generate more revenue over time on their own. Strong SaaS companies often post 110 percent or more. Below 100 percent means you are losing revenue from your base faster than you expand it.

How is NRR different from GRR?

NRR includes expansion revenue and so can exceed 100 percent, while Gross Revenue Retention excludes expansion and caps at 100 percent, measuring only how much you keep before any upsell. GRR shows pure retention; NRR shows net growth of the base.

Operating Leverage Calculator

What is the degree of operating leverage?

The degree of operating leverage is your contribution margin divided by your operating income. It tells you the percentage change in operating profit you can expect from a one percent change in sales. A higher number means your profit reacts more sharply to changes in revenue.

Is high operating leverage good or bad?

It depends on your outlook. High operating leverage boosts profit quickly when sales grow because fixed costs are already covered. The same leverage works against you in a downturn, so it carries more risk when revenue is uncertain.

What counts as a fixed cost?

Fixed costs stay broadly the same regardless of sales volume, such as rent, insurance, salaried wages and depreciation. Variable costs rise and fall with output, such as materials and freight. Splitting them correctly is the key to a reliable result.

Passive Income Target Calculator NZ

How much do I need invested for passive income?

Divide your target annual income by the yield you expect. For example, $20,000 a year at a 4% yield needs $500,000 invested. The lower the yield, the more capital you need.

What yield should I use?

Use a realistic, sustainable yield for your investments, whether dividends, interest or rent, after costs. Higher assumed yields need less capital but usually carry more risk.

Is passive income taxed?

Yes, income from dividends, interest and rent is generally taxable, so the after-tax income is less than the headline figure. Use a net yield or allow for tax when planning.

Pay Review Budget Calculator NZ 2026

What does a pay rise actually cost an employer?

More than the percentage suggests. Employer KiwiSaver of at least 3.5 percent and the ACC work levy both apply to the increase, so the cash cost runs several percent above the headline. On top of that, any annual leave your team has banked is revalued, because leave is paid at the rate in force when it is taken rather than when it was earned.

Should a pay pool be spread evenly or by performance?

That is a judgement about what you are trying to reward, and this calculator models either. An even distribution is simple and protects relativities. A differentiated one recognises performance but compresses nothing at the bottom, so the lowest band can fall behind the market over a few rounds. What matters is that the total lands where the budget is, and that you can explain the basis to the team.

Does a pay rise affect the annual leave provision?

Yes, and it is usually missed. Annual leave is paid at the rate in force when it is taken, so every rise revalues the whole outstanding balance of banked leave, not just leave earned from that point on. A business carrying several weeks of untaken leave per person takes a one off hit to the provision on top of the ongoing salary cost.

Payback Period Calculator

What is a good payback period?

There is no single right answer, as it depends on the type of investment and your appetite for risk. Many businesses look for equipment or fit out spending to pay back within two to four years. Shorter is generally safer because your capital is at risk for less time.

Does this account for the time value of money?

No. Simple payback treats a dollar received in year five the same as a dollar today. If you want to allow for the cost of money over time, use the discounted payback period calculator instead.

What cash flow figure should I enter?

Use the additional yearly cash the investment generates or saves, after running costs, rather than accounting profit. Be realistic and lean towards a conservative estimate. This keeps the payback period honest.

Payday and High-Cost Credit True Cost Calculator NZ

What are the CCCFA caps on high-cost loans?

For high-cost consumer loans (broadly those at 50 percent a year or more), New Zealand law caps the cost of credit at 0.8 percent of the principal per day, and limits the total interest and fees so you never repay more than twice the amount you first borrowed.

How does the total cost cap work?

The total interest and fees cannot exceed 100 percent of the first amount advanced. So a 500 dollar loan can never cost more than 500 dollars in interest and fees, meaning you repay at most 1,000 dollars.

Are payday loans a good idea?

They are among the most expensive ways to borrow even with the caps. Free alternatives like a MoneyTalks financial mentor, a Work and Income advance, or a low or no-interest loan from a community lender are almost always cheaper.

Payday Split Calculator NZ

How should I split my pay?

Split it into buckets for bills, savings, debt and spending, with the exact percentages suited to your situation. A common starting point is around half for needs, some for wants, and the rest for savings and debt.

Why split my pay on payday?

Automating the split the day you are paid means money for bills and savings is set aside before you can spend it, which is one of the most effective budgeting habits there is.

How do I set up payday splits?

Set up automatic transfers from your main account to separate accounts for bills, savings and debt on your pay date. This calculator shows the amounts to move.

Pet Lifetime Cost Calculator NZ

How much does a pet cost over its lifetime?

It varies widely by animal, breed and health, but once you add setup costs and years of food, vet care, insurance and other items, a dog or cat commonly runs into the tens of thousands of dollars over its life. This calculator gives you a tailored estimate.

What ongoing costs should I include?

The main yearly costs are food, routine vet visits and vaccinations, flea and worm treatment, pet insurance or a vet savings buffer, grooming, and replacing gear. Adding a margin for unexpected illness or injury makes your estimate more realistic.

Is pet insurance worth it?

Insurance turns unpredictable large vet bills into a steady premium, which can be valuable given how expensive emergency treatment can be. The alternative is setting aside your own vet savings buffer. Either way, include the cost in your annual figure so your lifetime estimate is complete.

Pipeline Coverage Calculator

What is a healthy pipeline coverage ratio?

A coverage of around 3x is a widely used benchmark, meaning you hold three times your target in open pipeline. The right number for you depends on your win rate, so a team that closes fewer deals needs more coverage. Use your own historical win rate to set the target.

How do I work out coverage from my win rate?

Divide one by your win rate to get the coverage you need. For example, a 33 percent win rate suggests you need roughly 3x coverage to expect enough wins to hit quota. This ties your coverage target to how your team actually performs.

Should I count every deal in my pipeline?

No. Only include deals that are genuinely active and qualified, with a real chance of closing in the period. Stale or unqualified deals inflate the ratio and give you false comfort, which leads to a nasty surprise at quarter end.

Price Increase Calculator

How do I calculate a price after an increase?

Multiply the current price by one plus the increase expressed as a decimal. A 10 percent rise means multiplying by 1.10. The calculator does this for you and also shows the dollar change.

Does this include GST?

It works on whatever figure you enter, so the result is GST inclusive only if your starting price already includes GST. Keep your inputs consistent and the answer will match. Use a GST tool if you need to split out the tax.

Can I model a price decrease?

Yes. Enter a negative percentage and the calculator will return a lower price and a negative change. This is handy for testing discounts or planned price cuts.

PQA Calculator

How is a PQA different from a PQL?

A PQL is a single qualified user, while a PQA is a whole account or organisation that meets your criteria. PQAs suit account based or team based products where many users share one subscription. They better match how larger deals are actually won.

What makes an account product qualified?

Choose account level signals that predict revenue, such as several active seats, a core integration connected, or usage above a threshold. Keep the definition stable so the rate stays comparable. Revisit it when your pricing or packaging changes.

Why measure at the account level?

In team and enterprise products, one buyer covers many users, so account level signals reflect buying intent more accurately. Tracking PQA rate helps sales focus on whole organisations rather than scattered individuals. It aligns your funnel with how deals close.

PQL Calculator

What is a product qualified lead?

A product qualified lead is a free or trial user who has experienced real value in your product and shown buying intent through their usage. Unlike a marketing lead, a PQL is identified by in product behaviour rather than a form fill. It signals that the user is ready for a sales conversation or an upgrade prompt.

How do I set my PQL qualification bar?

Pick actions that correlate with paying customers, such as activating a core feature, reaching a usage threshold, or inviting teammates. Keep the bar consistent so your rate stays comparable over time. Review it whenever your product or pricing changes.

What is a good PQL rate?

There is no single benchmark because it depends entirely on how strict your criteria are. Focus on the trend and on how well PQLs convert to paying customers. A rising rate with steady downstream conversion is the healthy signal to watch.

Product Stickiness Calculator

What is product stickiness?

Stickiness is daily active users divided by monthly active users, shown as a percentage. It estimates how many days in a month an average user is active. A higher ratio means people return more often.

What is a good stickiness ratio?

It depends on the product type. Daily-use apps may sit above 50 percent, while weekly tools often run nearer 10 to 20 percent. Compare against similar products rather than a single target.

How are active days per month worked out?

The tool multiplies the DAU/MAU ratio by 30 days. So a 20 percent ratio implies an average user is active about 6 days a month. It is an estimate based on a 30 day window.

Quick Ratio Calculator

Why does the quick ratio exclude inventory?

Inventory can be slow to sell and may not fetch full value in a hurry. Excluding it gives a stricter test of whether you can pay short term debts immediately. That is why it is called the acid test.

What is a good quick ratio?

A quick ratio of 1 or higher is generally healthy, meaning your liquid assets cover your short term liabilities. Some industries operate safely below 1. Always compare against peers and your own trend.

What counts as a quick asset?

Quick assets are current assets that can be turned into cash quickly, mainly cash, short term investments and accounts receivable. Inventory and prepaid expenses are excluded. The figure is current assets minus inventory.

Rates Rebate Calculator NZ

Who can get a rates rebate?

Homeowners who live in the property and have a modest household income may qualify under the Rates Rebate Scheme. The rebate is larger for lower incomes and reduces as income rises. You apply through your council each rating year, usually before 30 June.

How is the rates rebate calculated?

It is two-thirds of your rates above a $160 base, minus one-eighth of your household income above the income threshold, with the threshold lifted $500 per dependant. The result is capped at the annual maximum rebate. This calculator applies that official formula.

Do the threshold and maximum change?

Yes, the income threshold and maximum rebate are updated each rating year. This calculator pre-fills the current figures, but you can adjust them if they change. Always check the latest figures with your council or the Department of Internal Affairs before applying.

Real Return Calculator NZ

What is a real return?

A real return is your investment return after tax and inflation are taken out. It is what your money actually gains in buying power, which is the figure that matters, rather than the headline rate before tax and rising prices.

How do tax and inflation affect my return?

Tax takes a share of your earnings, and inflation erodes what each dollar buys. A 5% return taxed and then adjusted for inflation can leave a real return close to zero, which is why looking past the headline rate is so important.

Why does the real return matter?

Because it tells you whether your money is truly growing in buying power or just keeping up. An investment with a high headline return but a low real return may not be building wealth as much as it seems.

Renewal Forecast Calculator

What expected renewal rate should I use?

Use your actual historical renewal rate as a starting point, ideally measured by value so partial renewals are captured. Adjust for anything you know about the coming period, such as a price change. Avoid optimistic guesses that inflate the forecast.

What does the at-risk amount mean?

It is the value up for renewal that your expected rate suggests will not renew. It points to the revenue worth protecting with focused effort. Reducing it is the goal of your renewal and retention work.

Should I forecast by value or by count?

Forecasting by value gives a dollar figure you can budget around and captures downgrades that a simple count misses. If you only have a count based rate you can still apply it, but value is more useful for planning. Keep your inputs consistent.

Renewal Rate Calculator

Should I measure by count or by value?

Both are useful, but they answer different questions. Counting customers shows logo retention, while using contract value shows revenue retention and captures renewals at a lower price. Pick one, keep both inputs in that unit, and stay consistent.

What counts as up for renewal?

Only contracts whose renewal date falls in the period you are measuring should be counted, not your entire base. Including contracts not yet due will overstate or distort the rate. Define the window clearly and apply it each period.

How is renewal rate different from retention rate?

Renewal rate looks only at contracts that were due to renew, while retention rate can cover the whole base over a period. Renewal rate is sharper for contract based models. They often move together but are not identical.

Retire Early vs Work Longer Calculator NZ

Why does working a few more years help so much?

It works three ways at once: you add more contributions, your existing savings keep growing, and you have fewer years of drawdown to fund. Together these can extend how long your money lasts far more than the extra working time alone.

Does this include NZ Super?

This tool focuses on your private savings and the spending they must cover. NZ Superannuation provides a baseline income from age 65 on top, which reduces how much your savings need to fund. Treat the result as your savings picture, not your total income.

Should I use a real or nominal return?

For a clearer view, use an after-inflation return and today's spending, so the figures are in current dollars. That avoids the illusion of growth that inflation can create.

Return on Assets Calculator

What is a good ROA?

A ROA above 5 percent is often considered solid, and above 10 percent is strong, but it varies widely by industry. Asset light businesses post higher figures than capital heavy ones. Always compare against peers in the same sector.

Should I use total or average assets?

Either works if you are consistent. Many analysts use average total assets over the period to smooth out large changes in the balance sheet. The closing balance is simpler and fine for a quick estimate.

How is ROA different from ROE?

ROA measures profit against all assets, regardless of how they are funded. ROE measures profit against shareholder equity only. ROE is usually higher than ROA when a business uses debt.

ROCE Calculator

What is a good ROCE?

A good ROCE is generally above your cost of capital, so the business is creating value rather than destroying it. Many established firms aim for figures in the mid teens or higher. Compare against peers in your industry rather than a fixed target.

Why use EBIT instead of net profit?

EBIT is profit before interest and tax, so it measures operating performance regardless of how the business is funded or taxed. This makes ROCE comparable across companies with different debt levels. Net profit would mix financing decisions into the ratio.

How is capital employed calculated?

Capital employed is total assets minus current liabilities. It represents the long term capital, both equity and non current debt, that funds the business. Subtracting short term obligations leaves the capital actually tied up in operations.

Return on Equity Calculator

What is a good ROE?

An ROE between about 15 and 20 percent is often seen as strong, but it varies by industry and over time. Compare against peers and the returns available elsewhere. Watch the trend rather than a single figure.

Why can debt inflate ROE?

Debt funds assets without adding to equity, so profits are measured against a smaller equity base. This can lift ROE while also increasing risk. Always read ROE alongside the debt to equity ratio.

How is ROE different from ROA?

ROE measures profit against shareholder equity only. ROA measures profit against all assets, regardless of funding. ROE is usually higher than ROA when a business uses borrowing.

Rule of 40 Calculator

What is the Rule of 40?

It is a SaaS benchmark stating that a company's revenue growth rate plus its profit margin should total at least 40 percent. It balances the two: fast growers can run at a loss and still pass, while slower growers need strong profitability to clear the bar.

Which margin should I use?

Commonly operating margin, EBITDA margin or free cash flow margin. There is no single rule, so pick the one your business or investors use and apply it consistently. Free cash flow margin is popular because it reflects real cash generation.

Is a higher Rule of 40 score always better?

Generally yes, a higher score signals a more efficient business. But the mix matters too: investors weigh how the score is achieved, since durable growth and sustainable margins are viewed more favourably than a score propped up by one-off effects.

Rule of 72 Calculator

What is the Rule of 72?

The Rule of 72 is a quick way to estimate how long an investment takes to double. Divide 72 by the annual return as a percentage and you get the years to double. At 8% a year, money doubles in about 9 years.

How accurate is the Rule of 72?

It is a close approximation for rates between about 5% and 12%. This calculator also shows the exact figure using logarithms so you can see the small difference. For everyday planning the Rule of 72 is accurate enough.

Can I use it to find the rate?

Yes. If you want to double your money in a set number of years, divide 72 by the years to get the annual return you need. To double in 10 years you need about 7.2% a year.

Safe Withdrawal Rate Calculator NZ

What is the 4% rule?

The 4 percent rule is a guideline that you can withdraw about 4 percent of your retirement pot in the first year, then adjust for inflation, and have a good chance of the money lasting around 30 years. It is a starting point, not a guarantee.

Is 4% safe for New Zealand?

The rule comes from historical United States data, and some argue a slightly lower rate is prudent given fees, taxes and uncertainty. Many retirees also have NZ Super on top, which reduces how hard their savings must work. Treat 4 percent as a guide.

What is sequence-of-returns risk?

It is the danger of poor market returns early in retirement, which combined with withdrawals can deplete a pot faster than the average return suggests. Holding some cash and staying flexible with spending helps manage it.

Back to School Cost Calculator NZ

How much does back to school cost in New Zealand?

It varies by school and year level, but once you add stationery, uniform, shoes, a bag, technology, activities and any donation, the cost per child commonly runs into several hundred dollars, more with a device. This calculator builds your own family total.

Do I have to pay the school donation?

School donations are voluntary, not compulsory fees, and many schools that opt into the government donation scheme do not request one. You can choose to leave the donation out of your budget, though some families still contribute to support the school.

How can I reduce back-to-school costs?

Buy stationery in bulk or split packs with other families, reuse last year's bag and gear, look for second-hand uniforms through school pools or online, and spread devices over time. This calculator lets you adjust each category to see the saving.

Seat Utilisation Calculator

What is seat utilisation?

Seat utilisation is active seats divided by purchased seats, shown as a percentage. It tells you how much of your paid licensing is actually being used. The remainder is idle seats you are still funding.

What counts as an active seat?

Usually a seat used within a set window, such as a login in the last 30 days. Agree on one definition across your tools. Counting dormant accounts as active will overstate utilisation.

Why does utilisation matter at renewal?

Low utilisation means you can often reduce seats and cut cost. High utilisation may mean you need to buy more before staff are blocked. Reviewing it early gives you room to renegotiate.

Second Income Budget Calculator NZ

How is a second income taxed in New Zealand?

Each person is taxed on their own income using the same brackets; incomes are not added together for tax. So the household take-home is the sum of each person's net pay, which this calculator works out for both earners.

Why does my second job have a different tax code?

A second job for the same person uses a secondary tax code so enough tax is withheld across both, since the tax-free brackets are already used by the first job. For two different people, each is simply taxed on their own income.

What is the combined take-home for a couple?

It is each partner's net pay after tax and the ACC levy, added together. This calculator shows both nets and the combined weekly and annual figure you actually have to budget with.

Separation Asset Split Calculator NZ

How is relationship property split in New Zealand?

As a general principle, relationship property is divided equally between partners after a qualifying relationship, though there are exceptions for separate property and other factors. This calculator applies the equal-sharing starting point.

What is relationship property?

It generally includes the family home and chattels and assets acquired during the relationship, less shared debts. Separate property, such as some inheritances or pre-relationship assets, can be treated differently.

Is this legal advice?

No. Relationship property is complex with many exceptions, so this is an indicative starting point only. Get legal advice for your situation before making decisions.

Shares vs Property Calculator NZ

Are shares or property a better investment?

Both can build wealth. Property lets you borrow heavily, so a modest deposit controls a large asset and gains are amplified, but it is illiquid and has high costs. Shares are liquid, low cost and easy to diversify, but you usually invest unleveraged. The better choice depends on your goals, risk tolerance and effort.

Why does leverage matter for property?

With a 20% deposit you control five times your money in property, so even modest price growth produces a large return on your deposit, but losses are amplified too. Shares are usually bought with your own money, so returns track the market more directly.

Does this include rent and costs?

This is a simplified growth comparison on the asset values and your starting capital. It does not model rent, mortgage interest, tax or maintenance, which matter a lot in practice. Use it as a starting point, not advice.

Sharesies Fee Comparison Calculator NZ

How does Sharesies charge fees?

Sharesies charges a percentage transaction fee on each order, with caps on larger orders, plus a foreign exchange fee when you buy investments in another currency such as US shares. A percentage fee suits small orders but adds up on large ones.

When is a flat-fee broker cheaper?

A traditional broker charging a flat fee per trade is usually cheaper for large orders, where a percentage fee would be high, but expensive for small or frequent orders. The crossover depends on your order size, so it pays to compare.

Do fees really matter for investing?

Yes, especially if you trade often or in small amounts, because the fee is paid every time. Over a year of regular investing, the gap between a percentage platform and a flat-fee broker can be meaningful, so match the platform to how you invest.

Simple Interest Calculator

What is simple interest?

Simple interest is charged only on the original principal, not on interest already earned. So the interest is the same each period. The formula is principal times rate times time, where rate is the annual rate as a decimal and time is in years.

How is simple interest different from compound interest?

Simple interest is calculated on the principal alone, while compound interest is calculated on the principal plus any interest already added. Over long periods compound interest grows much faster, which is why savings usually compound and short term loans often use simple interest.

What is the simple interest formula?

Interest equals principal times annual rate times time in years. For example $1,000 at 5% for 3 years is 1,000 times 0.05 times 3, which is $150 of interest, and a total of $1,150.

Subscription Cost Calculator NZ

How much do subscriptions cost a year?

It adds up faster than people expect. Several streaming, app and membership subscriptions can total hundreds of dollars a month. This calculator converts them all to a monthly and annual total so you see the full picture.

How do I add up subscriptions on different billing cycles?

Convert each to a monthly figure: weekly times about 4.33, fortnightly times about 2.17, and annual divided by 12. This calculator does it automatically and adds them up.

Why review my subscriptions?

Subscriptions bill automatically and are easy to forget. Seeing the total often reveals services you no longer use, and cancelling them is some of the easiest money to free up in any budget.

Tertiary Study Budget Calculator NZ

How do students budget in New Zealand?

Add up your weekly income from a student allowance or loan living costs and any part-time work, then your weekly expenses for rent, food, transport and study. The difference shows whether your budget balances.

What is the student loan living cost?

Eligible students can borrow a weekly living cost amount through the student loan, on top of fees and course-related costs. It is repaid later, so borrowing less now means a smaller loan.

How can students make ends meet?

Flatting to share costs, part-time work, and trimming spending all help. The calculator shows your weekly surplus or shortfall so you can adjust before you fall behind.

Time to Value Calculator

What does first value mean?

First value is the moment a customer reaches their first meaningful outcome with your product, such as sending an invoice or completing a project. It marks when they first feel the benefit they signed up for. Define it clearly so your TTV stays consistent across cohorts.

Why does time to value matter?

A shorter time to value usually leads to higher activation, better conversion and stronger retention. The faster people reach value, the less likely they are to churn early. Reducing TTV is often one of the highest leverage product improvements you can make.

Should I use the average or the median?

The average is simple and works well for this calculator, but a few very slow customers can pull it up. Reviewing the median or the spread alongside the average gives a clearer picture. Use both when you can to avoid being misled by outliers.

Total Contract Value Calculator

What does total contract value include?

TCV includes the full recurring revenue across the term plus any one off fees such as setup or professional services. It represents the entire value of the contract from signing to expiry. It does not assume future renewals you have not signed.

How do I calculate TCV?

Multiply the annual recurring amount by the number of years, then add any one off fees. For example, $30,000 a year for 3 years plus a $5,000 setup fee gives a TCV of $95,000. Keep recurring and one off amounts separate so you can see the repeatable portion.

Should renewals be counted in TCV?

Only count renewals that are contractually committed. Speculative renewals you expect but have not signed should be left out of TCV. This keeps the figure grounded in the actual agreement.

Tradie Job Quote Calculator NZ

How should a tradie price a job?

Cover labour at a realistic charge-out rate, mark up materials to cover handling and buying, add an overhead and profit margin to cover business costs and your return, then add GST if registered. This calculator combines all of these into one quote so nothing is missed.

Why mark up materials?

A markup covers the time you spend sourcing, collecting and warranting materials, the cash you tie up buying them, and the risk if something is wrong. Charging materials at cost gives away that value, so a markup of 10 to 20 percent is common and reasonable.

Do I add GST to my quote?

If you are GST-registered, you must charge 15 percent GST on top of your price, and you can claim back GST on your purchases. If you are not registered, you do not add GST. This calculator adds 15 percent, which you can treat as zero if you are not registered.

Travel Budget Calculator NZ

How do I budget for an overseas trip?

Add the big fixed costs such as flights and accommodation, then estimate daily costs for food, transport and activities, and add a buffer for the unexpected. This calculator brings it together and shows the cost per day and per person.

What do people forget in a travel budget?

Travel insurance, visas, airport transfers, tips, data and a contingency are commonly missed. Including them upfront avoids a nasty surprise, and a buffer of around 10 to 15% covers the things you cannot predict.

How much should I save for my trip?

Use the total here as your savings target, then divide by the weeks until you travel to find a weekly amount. Saving steadily means the trip is paid for before you go, rather than landing on a credit card after.

Truck & Heavy Vehicle Finance Calculator NZ 2026

How is truck finance different from a car loan?

The repayment maths is the same, but commercial vehicle finance often runs over longer terms, uses a balloon tied to expected resale, and the vehicle is usually a business asset. A GST-registered business can also claim the GST on the purchase, which improves cash flow in the first return.

Can I claim GST on a truck I finance?

If you are GST registered and the vehicle is used for taxable business activity, you can generally claim the GST content of the purchase price, regardless of how it is financed. This calculator shows the GST portion, which is three twenty-thirds of a GST-inclusive price. Confirm your entitlement with your accountant.

Should I use a balloon on truck finance?

A balloon lowers monthly repayments and can match the payment to the income the truck earns, but it increases total interest and leaves a lump sum at the end. Keep the balloon below the truck's likely resale value so you can clear it by selling, trading or refinancing.

Upsell Rate Calculator

What counts as an upsell?

An upsell is when an existing customer moves to a higher plan or increases their spend with you, such as adding seats or moving up a tier. Decide on a clear definition and apply it consistently. Mixing definitions makes the rate hard to trust over time.

How is upsell different from cross-sell?

Upselling moves a customer to a bigger version of what they already buy, while cross-selling adds a different product. Both grow account value but they use different playbooks. Tracking them separately shows which motion is working.

What is a good upsell rate?

It varies widely by product, price and customer base, so there is no single benchmark. Compare your own rate over time and across segments rather than chasing an external number. A steady climb is usually the goal.

Utilisation Rate Calculator

How is utilisation rate calculated?

Divide billable hours by available hours for the same period, then multiply by 100 for a percentage. For example, 30 billable hours out of 40 available is 75 percent. Idle hours are the available hours that were not billed.

What are available hours?

Available hours are the capacity you can sell in a period. They are usually your standard working hours less public holidays and planned leave. Defining them consistently keeps comparisons fair.

Is a higher utilisation always better?

Not necessarily. Very high utilisation leaves no time for sales, training or rest and can lead to burnout. Most service firms target a sustainable band rather than the maximum possible.

Wedding Budget Calculator NZ

How much does a wedding cost in New Zealand?

It varies enormously with guest count, venue and style. The guest count is the biggest driver because catering is usually charged per head. This calculator lets you set your own figures and see the total.

Why do weddings go over budget?

Costs creep in category by category, and the guest list grows. Tracking each category against a total budget, as this calculator does, helps you make deliberate trade-offs rather than drifting over.

What is the biggest wedding cost?

Catering and venue are usually the largest, and both scale with guest numbers. Trimming the guest list is often the most effective way to cut the total.

Wedding Catering Cost Calculator NZ

How much does wedding catering cost per head in New Zealand?

It varies widely with the style of reception, from a casual buffet to a plated multi-course dinner with a full bar. This calculator builds your own per-head figure from your food and drink choices plus fixed costs, which is more useful than a generic average.

Why does the per-head cost change with guest numbers?

Because fixed costs like staff, hire and the cake are shared across all guests. With more guests those fixed costs are spread thinner, lowering the cost per head, even though the total rises. Fewer guests means each one carries more of the fixed cost.

What should I include in catering costs?

Food and drink per guest are the main variable costs. Add fixed costs such as waiting and bar staff, equipment, crockery or marquee hire, and extras like the cake, late-night food and meals for vendors. Including these gives a realistic total rather than just the menu price.

YouTube Money Calculator

How much does YouTube pay per 1,000 views?

Creator earnings are measured by RPM, the revenue you receive per 1,000 total video views after YouTube takes its share of ad revenue. RPM varies enormously with niche and audience country: many channels sit somewhere between about $2 and $8 NZD per 1,000 views, while finance, business and technology content can earn well above that and music or gaming content often earns less. Your own RPM is shown in YouTube Studio under Analytics then Revenue.

What is the difference between CPM and RPM?

CPM is what advertisers pay per 1,000 ad impressions, before YouTube deducts its share of ad revenue, which is typically 45% for long-form videos. RPM is what you actually receive per 1,000 total views, after YouTube's share, and it averages across every view including the ones that showed no ad at all. RPM is therefore always lower than CPM, and it is the right number to use when estimating channel earnings from view counts.

How many views do you need to make $1,000 a month on YouTube?

Divide the target by your RPM and multiply by 1,000. At a $4 RPM you need 250,000 views a month, which is about 8,200 views a day. At a $2 RPM you need 500,000 monthly views, and at an $8 RPM you need 125,000. You must also be in the YouTube Partner Programme before any ad revenue is paid, which requires 1,000 subscribers plus 4,000 public watch hours in the past year, or 10 million public Shorts views in 90 days.

YTD Calculator NZ 2026

What is the YTD Earnings Calculator NZ 2026?

Calculate your extrapolated full financial year gross income from your latest payslip. Enter your YTD earnings and payslip date to see days elapsed, percentage of the year paid, and projected annual income.

Is the YTD Earnings Calculator NZ 2026 free to use?

Yes. The YTD Earnings Calculator NZ 2026 is free to use on Calculate.co.nz, with no sign-up, paywall or account required.

Is the YTD Earnings Calculator NZ 2026 made for New Zealand?

Yes. It is built for New Zealand and uses current New Zealand rules and rates where they apply. Results are indicative estimates and not financial advice.

Zakat Calculator NZ

What is nisab and how much is it?

Nisab is the minimum level of wealth at which zakat becomes payable. It is defined by weight of precious metal: commonly 87.48 grams of gold (some scholars use 85 grams) or 612.36 grams of silver (some use 595 grams), converted to local currency at current prices. Because silver is much cheaper than gold, the silver-based nisab is far lower, and many charities recommend it for cash-based wealth so that more is given to those in need. Check a current NZD nisab figure with your mosque or a zakat charity before you calculate, and enter it in the nisab field.

How is zakat calculated?

Add up your zakatable assets: cash and bank balances, the market value of gold and silver, shares and investments, business stock and money owed to you that you expect to receive. Subtract debts due for payment now. If the net amount is at or above the nisab threshold, and it has been held for a full lunar year (hawl), zakat is due at 2.5% of the whole net amount, not just the part above nisab. For example, 2.5% of $20,000 is $500.

Do I pay zakat on my house and car?

No. Personal-use assets such as the home you live in, your car, furniture and clothing are exempt from zakat. However, property or vehicles bought with the intention of resale are trading stock and their market value is zakatable, and rental income you have accumulated as savings counts as cash. KiwiSaver and other retirement savings are treated differently by different scholars because access is restricted, so ask your mosque or a qualified scholar how to treat them.