Saving and investing questions, answered

Career Break Investment Impact Calculator NZ 2026/27

What does a career break cost my investments?

Far more than the contributions you skip. On the worked example an 18-month pause on $600.00 a month means $10,800.00 of contributions missed, and reduces the final balance from $1,218,972.45 to $1,135,988.73, a cost of $82,983.72. That is 7.68 times the money you did not pay in, and the difference is the compounding those dollars would have earned.

Why is the cost so much larger than the contributions missed?

Because a contribution made thirty years before you need it is worth many times its face value by the time you do. Skipping it removes both the dollar and everything it would have earned. The multiple depends almost entirely on how long the money had left to grow, which is why the same break costs so much more early in a working life than late.

Does the timing of a break matter more than the length?

Often, yes. On the worked example the same 18-month break costs $82,983.72 if it starts in year one and $14,493.91 if it starts in year twenty-six, a difference of nearly six times. If the timing is genuinely flexible, moving a break later is worth more than shortening it.

Does a longer break cost proportionally more?

Slightly less than proportionally, which surprises people. On the worked example a 3-month break costs 8.02 times the contributions missed and a 36-month break costs 7.30 times. The multiple falls because the earliest missed dollars are the ones with the longest to compound, so each additional month of pause is a little less damaging than the one before.

Should I avoid taking a career break?

That is not what this calculation says. Parental leave, study and time out are decisions about a life, not a portfolio, and the figure here is one input among many. What it does show is that the cost is larger than it looks, that it is worth knowing before rather than after, and that small mitigations, such as contributing something rather than nothing, are worth more than they appear.

How much extra do I need to contribute to catch up?

Less than the headline cost implies, because the catch-up contributions also compound. The calculator works out the additional monthly amount needed over the remaining years to reach the same final balance. Because that figure is spread across decades it is usually modest, and knowing it turns an alarming number into a manageable plan.

Does this apply to KiwiSaver?

The same arithmetic applies, and KiwiSaver has extra consequences a pause triggers. Employer contributions generally stop when your own do, and the annual government contribution depends on how much you have put in during the year. A KiwiSaver savings suspension is therefore more costly than the equivalent pause in an ordinary account.

Is contributing a smaller amount better than stopping?

Materially better, and the calculation shows why. The cost scales with the contributions actually missed, so halving your contribution during a break costs roughly half as much as stopping entirely. For a long break early in a working life, keeping something going is one of the highest-value adjustments available.

Child Investment Account Calculator NZ 2026/27

Should a child's investment be in their name or a parent's?

On tax, the child's, because their prescribed investor rate is usually lower. On the worked example $10,000.00 plus $100.00 a month over twelve years reaches $38,227.82 in the child's name at a 10.5% PIR against $34,917.06 in a parent's at 28%, a difference of $3,310.76. The catch is that money in a child's name is legally theirs at 18.

What PIR does a child have?

The same test applies to a child as to anyone else, and there is no special child rate. A child with little or no other income will generally qualify for 10.5%, since that requires taxable income of $15,600 or less and taxable plus PIE income of $53,500 or less. Income tax brackets in New Zealand do not depend on age.

Does a child's investment affect Working for Families?

It can. Inland Revenue states that where a dependent child receives more than $500 a year in passive income, the amount over $500 is treated as income for Working for Families. On the worked example a $10,000.00 balance produces around $570.00 in the first year, so $70.00 would count. A larger account can reduce an entitlement worth more than the tax saving.

What happens to the money when they turn 18?

It is theirs. An account in a child's name is the child's property, and once they reach adulthood they control it entirely, whatever it was intended for. That is the genuine risk in this decision and no calculation addresses it. If you are not comfortable with that, holding the money in your own name and gifting it later keeps control, at the cost of the tax difference.

How does this differ from KiwiSaver for a child?

KiwiSaver is locked in until 65, with limited exceptions such as a first home withdrawal. An ordinary investment account is available whenever it is needed, which makes it suitable for education, a car or a deposit. They are complementary rather than competing: KiwiSaver for the very long term, an ordinary account for anything before that.

What is the minor beneficiary rule?

Where a trust settled by a relative or guardian distributes income to a beneficiary under 16, that income is generally taxed as trustee income at 39% rather than at the child's own rate. Exceptions include distributions of $1,000 or less in a year, disabled beneficiary trusts and deceased estates. It applies to trust distributions, not to a child's own investment account.

Is it better to start early with a small amount?

Almost always, because the horizon is fixed by the child's age and cannot be extended later. On the worked example the same contributions reach $19,716.86 over five years and $60,286.50 over eighteen. Starting at birth rather than at ten roughly doubles the time available, and time is the input doing most of the work.

Do I need to file a tax return for my child?

Where the investment is a PIE and the correct PIR has been given, the tax is handled by the fund and there is usually nothing further to do. What does need attention is making sure the child's IRD number is on the account and the PIR is right, since a wrong rate on a child's account is common and defaults are usually set too high. Check with an accountant if the child has other income.

Client Portfolio Projection Calculator NZ 2026/27

Why does a projection need a range?

Because the range is enormous and hiding it sets expectations that cannot be met. On the worked example, $350,000.00 plus $24,000.00 a year over 20 years produces a median of $1,982,703.47, but the poor case is $1,158,154.69 and the good case is $3,394,290.14. The good case is 2.93 times the poor one, and a single number conceals all of that.

Why is the average outcome higher than the median?

Because compounding produces a skewed distribution with a long upper tail. On the worked example the average is $2,165,083.18 while the median is $1,982,703.47, so more than half of all outcomes fall below the average. Quoting the average overstates what a typical client will experience, which makes the median the more honest headline.

Does volatility change the expected outcome?

It leaves the average untouched and lowers the median, which surprises most people. On the worked example, holding the expected return at 6.50%, a 6.00% volatility gives a median of $2,118,376.58 while an 18.00% volatility gives $1,771,536.23. Two portfolios with identical expected returns do not produce identical typical outcomes.

What do the poor and good cases mean?

They are the tenth and ninetieth percentiles, so eighty percent of outcomes fall between them. One in ten results is worse than the poor case, which makes it a plausible outcome rather than a disaster scenario. Nothing on this page is a worst case, and genuine market crises can produce results below the tenth percentile.

Should projections be in today's money?

For any conversation about what the money will buy, yes. On the worked example a nominal median of $1,982,703.47 is $1,334,302.60 in today's money at 2.00% inflation. The nominal figure is not wrong, but presenting it alone overstates purchasing power by roughly a third over 20 years.

How are contributions handled in the maths?

With an exact recursion on the mean and variance of the balance each year, then a lognormal fitted to those two moments to read percentiles. A portfolio receiving contributions is not exactly lognormal, so this is a deliberate approximation rather than an exact result, and it is stated here rather than hidden.

Can I use this with clients?

It is a general calculator rather than a compliant advice document, so treat it as a discussion aid. Any projection given to a client in a regulated context carries disclosure obligations about assumptions and their limitations, and those requirements sit with the adviser rather than with the tool.

What does this model get wrong?

Returns are assumed independent from year to year with constant volatility, and real markets satisfy neither condition. Tails are fatter than the model allows, so severe outcomes are understated. It also assumes contributions continue uninterrupted, which is often the least reliable assumption in the whole projection.

Emergency Fund Placement Calculator NZ 2026/27

Where should I keep my emergency fund in New Zealand?

If you have a mortgage with an offset or revolving credit facility, there, because it beats every taxed alternative and stays instantly available. On the worked example, $25,000.00 against a 5.85% mortgage is worth $1,462.50 a year, against $450.00 in a PIE cash fund and $418.75 in on-call bank savings. Without a mortgage facility, the best accessible option on those figures is a PIE cash fund, on the strength of the 28% PIR cap rather than a higher headline rate.

Why does a mortgage offset beat a savings account?

Because it is not taxed. Money in an offset reduces the interest you are charged rather than generating interest you are paid, and there is no income to tax. A 5.85% mortgage rate is therefore worth a full 5.85% to you, while a 2.50% savings account taxed at a 33% marginal rate is worth 1.68%. The mortgage rate is also higher to begin with, so the gap compounds from both directions.

Should I put my emergency fund in a term deposit?

Not the part you might genuinely need. A term deposit will usually show the best return among taxed options, $670.00 a year on the worked example against $450.00 for a PIE cash fund, but it is not available in an emergency without breaking it, and break arrangements vary by bank and can materially reduce the interest earned. The extra $220.00 a year is not payment for a real gain if the money has to be reachable.

How much does leaving it in my transaction account cost?

On the worked example, $1,462.50 a year against a mortgage offset, or $450.00 against a PIE cash fund if there is no mortgage. A transaction account paying nothing is the single most common and most expensive place for emergency money to sit, and moving it takes one transfer. This is usually the largest and easiest saving on the whole page.

Why is a PIE cash fund ahead of a bank savings account?

Only because of tax. On the worked example both pay 2.50%, but the PIE is taxed at a 28% prescribed investor rate while the bank account is taxed at a 33% marginal rate, so the PIE nets $450.00 against $418.75. If your marginal rate is 28% or below the advantage disappears entirely and the two are identical, which is why this is a comparison worth running with your own rates rather than assuming.

Does the offset advantage depend on my tax rate?

Yes, and it grows with it. Because the offset return is untaxed and everything else is not, a higher marginal rate widens the gap. On the worked example the offset beats the best taxed option by $637.50 a year at a 17.5% marginal rate and by $852.50 at 39%. The placement decision therefore matters most to the people who tend to assume it does not matter at all.

Should I use my credit card as an emergency fund instead?

No. An emergency fund exists to absorb a shock without adding a liability, and a credit card does the opposite at a rate far above any of the placements here. The one defensible version is holding an undrawn revolving credit facility against a mortgage, which is genuinely cheap and genuinely available, but that only works if the facility stays undrawn and the discipline holds.

Should any of an emergency fund be invested?

The part you may need at short notice, no. An emergency fund is defined by being available on the worst possible day, and the worst possible day for your job is often a poor day for markets, so a fund that has to be sold at a loss to be used has failed at its job. Money beyond the fund is a separate question about horizon rather than access.

Managed Fund Fee Drag Calculator NZ 2026/27

How much do fund fees cost over a lifetime?

Far more than the fees charged. On the worked example a 1.20% fee on $50,000.00 plus $300.00 a month over thirty years takes $73,565.47 in fees and costs $152,051.38 in total, which is 25.24% of the balance you would otherwise have had. The difference is the growth those fees would have earned had they stayed invested.

Why is the cost more than the fees charged?

Because every dollar taken in fees stops compounding. On the worked example the fees charged are $73,565.47 and the growth forgone is $78,485.90, so slightly more than half the total cost is money that was never charged to you at all. It is simply the return on the money that left. A fee disclosure shows you the first figure and never the second.

How much would switching to a cheaper fund be worth?

On the worked example, $102,532.66 over thirty years, being the difference between $450,431.90 on a 1.20% fee and $552,964.56 on a 0.35% one. That is 18.54% more money for the same investment, the same contributions and the same return, from a decision that takes a form and some paperwork.

Does a small fee difference really matter?

Over a long horizon, substantially. On the worked example the difference between a 0.25% fee and a 0.50% fee is $33,508.70 across thirty years, from a quarter of one percent. The reason is that the fee applies to the whole balance every year, and the balance is compounding, so a constant percentage takes a rising dollar amount.

Should I compare against a zero-fee fund?

It is useful for seeing the true scale of the drag, and it is not a decision you can act on, because no fund is free. That is why this calculator asks for a realistic alternative as well. The gap between two funds you could actually choose between is the actionable number; the comparison against zero shows how much of your return the industry takes in total.

Should I use a gross or a net return?

Gross, meaning the return before fees are taken out. Published fund returns are usually shown after fees, so using one of those here would deduct the fee twice and overstate the cost. If the only figure you have is a net return, add the fee back to it before entering it.

Does the stated fee capture everything?

No, and the real figure is usually a little worse. A fund's shortfall against its index is typically larger than its stated fee, because trading costs, cash held for redemptions and unrecovered withholding tax all reduce the return without appearing in the fee. Our tracking difference calculator measures that gap, and the number it produces is the more honest one to enter here.

Is the cheapest fund always the right choice?

For genuinely comparable funds, lower fees win over time and the evidence on that is strong. Two funds are only comparable if they hold similar things, though, and a cheap fund holding the wrong assets for your horizon is a worse outcome than an expensive one holding the right assets. Settle what the fund should hold first, then compare fees within that category.

Fund Overlap Calculator NZ 2026/27

How do I know if my funds overlap?

Compare their market allocations rather than their names. On the worked example, three funds holding $35,000.00 between them carry $10,800.00 of exposure that comes from more than one fund, which is 30.86% of the portfolio. Two of those funds are 62.00% identical despite being marketed as different products, and one of the three adds no market exposure the others do not already provide.

Is holding three funds more diversified than one?

Not necessarily, and often not at all. Diversification comes from what the funds hold, not from how many of them you own. On the worked example the three funds produce a portfolio that is 64.00% United States shares, which is more concentrated than the largest of the three funds on its own. Counting funds is not a measure of anything.

What does it mean if a fund is 100% duplicated?

It means every market it invests in is already covered by another fund you hold, so it changes your weights rather than adding a new exposure. That can be intentional, if you want more of that market. It is a problem when it was bought for diversification, because it is doing the opposite. On the worked example, Fund B is 100.00% duplicated and adds $0.00 of exposure that Fund A does not already give.

Does this compare individual shares?

No. It compares market exposure, which is the level factsheets report and the level at which the question is usually decided. Two funds covering the same market with different underlying shares will show as overlapping here even though the specific holdings differ. That is the right answer for whether they do the same job in a portfolio, and the wrong tool for a share-by-share comparison.

How much United States exposure is too much?

There is no threshold, but there is a reference point: the United States is the largest weight in global indices by a wide margin, so a globally weighted portfolio is already heavily exposed to it. The question worth asking is whether your figure is the result of a decision or an accident. On the worked example, adding a second fund lifted United States exposure from 62.00% of one fund to 64.00% of the whole portfolio.

Where do I find my fund's market allocation?

The monthly or quarterly factsheet, usually under a heading like geographic allocation, regional breakdown or country exposure. Every managed fund and exchange traded fund publishes one, and it is free. The product disclosure statement describes the mandate rather than the current holdings, so the factsheet is the better source.

Should I just hold one global fund instead?

It is a legitimate option and worth costing rather than assuming. A single global fund removes the overlap question entirely and removes the need to rebalance between funds, at the price of losing control over the weights. A multi-fund portfolio gives you that control and requires you to actually use it. Our one fund vs multi-fund calculator prices both sides of that trade.

Do my weights have to add to 100 percent?

Yes, for the output to mean anything. If a fund's percentages do not total 100, some of its assets are unaccounted for and every figure derived from it is understated. Group anything that does not fit neatly, such as listed property or infrastructure, into the closest market rather than omitting it. The calculator flags a fund whose weights do not total 100.

FX Drip-Feed vs Lump Sum Calculator NZ 2026/27

Should I convert a large sum all at once or spread it out?

It depends entirely on which way rates move afterwards, which is unknowable in advance. On the worked example, converting $60,000.00 at 0.5850 delivers US$34,889.40, while spreading it across six instalments at an average of 0.5825 delivers US$34,740.30. The lump sum won by US$149.10, purely because the rate available on day one turned out to be better than the average of the following six. Had rates moved the other way, spreading would have won by a similar margin.

Does spreading a conversion reduce the fee?

No, and this is the most common misunderstanding. Where the FX fee is a flat percentage, six conversions of $10,000.00 cost exactly the same as one of $60,000.00: $360.00 either way at 0.60%. Spreading changes which exchange rate you receive, not what you pay in fees. If anything it costs slightly more, because any fixed fee per transaction is multiplied by the number of instalments.

What does a fixed fee per conversion do to the comparison?

It penalises spreading, in direct proportion to the number of instalments. On the worked example a $5.00 fixed fee per conversion costs $5.00 on the lump sum and $30.00 across six instalments, so spreading starts $25.00 behind before any rate movement. At $10.00 per conversion the handicap is $50.00. Check whether your platform charges one, because it is often buried in a fee schedule and changes the arithmetic.

Is dollar cost averaging into a currency a good idea?

It reduces the consequence of being unlucky with timing, which is different from improving the expected outcome. Spreading guarantees you receive close to the average rate over the period rather than a single rate that might be very good or very bad. For someone converting a large sum relative to their wealth, that reduction in variance can be worth more than the average outcome, which is a legitimate reason to spread even though it does not improve the expected result.

How is this different from dollar cost averaging into shares?

Shares have a long-run upward expectation, so delaying investment usually costs you return on average. Currencies do not: an exchange rate is a relative price between two economies and has no comparable long-run drift in either direction. That means the standard argument against spreading share purchases, which is time out of the market, does not apply in the same way to a currency conversion. Spreading a conversion is closer to a genuine coin toss than spreading a share purchase.

What average rate did spreading achieve?

On the worked example, 0.5825 against the 0.5850 available on day one, a difference of 0.0025. Because equal dollar amounts were converted at each rate, the average is the simple mean of the six rates. Note that if you were converting a fixed amount of foreign currency each time instead of a fixed amount of New Zealand dollars, the maths changes and you would receive the harmonic mean, which is always slightly more favourable.

How many instalments should I use if I decide to spread?

There are diminishing returns. Moving from one conversion to three removes most of the single-day timing risk. Going from three to six removes noticeably less, while multiplying any fixed fee and the administrative effort. If you are spreading to reduce the risk of a bad day rather than to predict a direction, three to four instalments over a few months captures most of the benefit.

Can this calculator tell me what rates will do?

No, and no tool can. This shows what a rate path you supply would have produced, which is useful for testing a historical period or stress-testing a plan against a range you consider plausible. If you enter rates that decline steadily, spreading will look bad; if you enter rates that rise, it will look good. The value is in seeing how much the decision is worth under different paths, not in choosing a path.

Investing Through A Company Calculator NZ 2026/27

Does investing through a company save tax in New Zealand?

It defers tax rather than saving it. A company pays 28% on investment income, but when profits are distributed the shareholder tops up to their own marginal rate. On the worked example, $100,000.00 of income leaves a 39% shareholder with $61,000.00, which is the same as if they had earned it personally.

Is a company better than a PIE for investing?

For a high earner, no, and the gap is large. A PIE taxes income at your prescribed investor rate capped at 28%, and that is final. On $100,000.00 of income a PIE leaves $72,000.00 while a company distributing to a 39% shareholder leaves $61,000.00. The PIE is $11,000.00 ahead, which is exactly the gap between 39% and 28%.

Can my company just invest in a PIE?

It can invest in one, but it gets no rate benefit. Inland Revenue treats a New Zealand resident company as a zero-rated investor using a 0% PIR, and all income from a multi-rate PIE must be included in the company tax return. The income is taxed at 28% in the company return either way, so the PIE cap is unavailable to companies.

How do imputation credits work on a dividend?

A company can attach up to 28 cents of imputation credit to each 72 cents of profit distributed, the maximum 28:72 ratio. On the worked example $72,000.00 of cash carries a $28,000.00 credit, making a gross dividend of $100,000.00. Dividend RWT of 33% on that gross amount is $33,000.00, reduced by the $28,000.00 credit, so $5,000.00 is withheld.

What does the shareholder actually receive?

On the worked example, $67,000.00 in cash after the $5,000.00 of RWT. A shareholder on 33% has then paid their full liability. A shareholder on 39% owes a further $6,000.00 in their own return, bringing the total tax to $39,000.00 and the net to $61,000.00.

Is the deferral worth anything?

Yes, if profits genuinely stay retained for a long time. On $500,000.00 growing at 6.00%, retaining in a company rather than holding personally at 39% is worth $17,980.89 after 10 years and $65,729.19 after 20. That is a real benefit, and it is still smaller than what a PIE would deliver over the same period.

What about the cost of running the company?

Annual accounts, a tax return, the companies office filing fee and an imputation credit account all have to be maintained whether or not the structure saves anything. Those costs are certain and recurring, while the deferral benefit only accrues if profits are genuinely left in place, so a modest portfolio can easily spend more on compliance than the structure returns.

When does a company make sense for investments?

Usually when it exists for reasons other than the investments. An operating business with genuine surplus, a structure needed for liability separation or co-ownership, or profits that will be retained for many years can all justify it. Setting up a company purely to hold a personal share portfolio rarely does, because the PIE alternative is both cheaper and taxed at a lower final rate.

Investing Through A Trust Calculator NZ 2026/27

Is it better to invest personally or through a trust?

It depends entirely on what you hold and whether you can distribute. On the worked example $500,000.00 over twenty years reaches $1,192,085.12 held personally and $1,353,349.74 in a trust distributing to a beneficiary on 17.5%, so the trust is $161,264.62 ahead. On PIE investments the same trust ends $48,974.53 behind.

Why does a trust lose money on PIE investments?

Because the tax is identical and the compliance cost is not. A trustee can use a 28% prescribed investor rate and an individual's PIR is capped at 28%, so a higher earner pays the same rate either way. The trust then pays $30,000.00 of compliance over twenty years on the worked example, and that cost compounds, leaving it $48,974.53 behind.

Does retaining income in a trust help?

Not for a top-rate taxpayer. Trustee income is taxed at 39% from the 2024-25 income year, matching the top personal rate, so retaining saves nothing while still incurring the compliance cost. On the worked example the retain route ends at $1,145,322.61 against $1,192,085.12 held personally, which is $46,762.51 worse.

How much of my return is actually taxed?

Only the income part, for a long-term investor. New Zealand has no general capital gains tax, so growth in the value of shares is generally not taxed on sale for someone who is genuinely investing rather than trading. The worked example assumes a 6.00% total return of which 4.00% is taxable income, and entering the whole return as taxable would overstate the difference between the structures.

How does the $10,000 trustee de minimis work?

Trustee income of $10,000 or less in a year is taxed at 33% instead of 39%. It is a cliff rather than a sliding threshold: once trustee income exceeds $10,000 the whole amount is taxed at 39%, not just the excess. On a portfolio large enough to be worth this discussion the de minimis is usually already exceeded.

Does the gap keep growing over time?

Yes, in whichever direction it starts, because both the tax difference and the compliance cost compound. On the worked example the trust advantage on non-PIE income is $17,666.81 at five years, $46,847.65 at ten, $161,264.62 at twenty and $408,461.83 at thirty. The same compounding works against the trust where it is behind.

Should I set up a trust to save tax on investments?

Tax alone is rarely a sufficient reason now that the trustee rate matches the top personal rate. The saving depends on having beneficiaries on genuinely lower rates and on distributions being real, and it disappears entirely for PIE investments. Trusts remain valuable for asset protection and succession, and those reasons are outside anything this page calculates.

What does this calculation leave out?

Asset protection and succession value, which are the usual reasons for a trust. Setup and winding-up costs. Trustee obligations under the Trusts Act 2019. The minor beneficiary rule, which taxes distributions to under-16s at 39% and can remove the saving. And any anti-avoidance consideration where an arrangement exists mainly to reduce tax.

Investment Time Horizon Risk Calculator NZ 2026/27

It depends almost entirely on how long you hold. On the worked example, with a 7.00% expected return and 15.00% volatility, the chance of ending with less than you started is 33.90% over one year, 17.66% over five, 9.46% over ten and 3.17% over twenty. The probability falls because the expected return accumulates faster than the uncertainty around it.

Does investing get safer the longer I hold?

In one sense yes and in another no, and both matter. The chance of a loss falls sharply with time. The range of possible outcomes in dollars widens at the same time: on the worked example, $50,000.00 at twenty years sits somewhere between $71,595.69 and $354,292.17 across the middle eighty percent of outcomes. You are less likely to lose and less certain what you will have.

Which matters more, the return or the volatility?

Volatility, for this question. On the worked example a portfolio with 10.00% volatility has a 1.59% chance of a loss over ten years, while one with 25.00% volatility has a 28.65% chance over the same period, and still 21.27% over twenty years. That is why diversification does more for this than patience does.

Is twenty years long enough to be safe?

For a well diversified portfolio the chance of a nominal loss becomes small, at 3.17% on the worked example. For a concentrated one it does not: at 25.00% volatility the twenty-year figure is still 21.27%. Time reduces the risk of a diversified portfolio far more effectively than it rescues a concentrated one.

What model does this use?

A lognormal distribution of cumulative returns, which is the standard textbook approach. Annual log returns are treated as independent and normally distributed, with the mean and standard deviation derived from the expected return and volatility you enter. The probability of a loss is then the chance that the cumulative log return falls below zero.

How accurate is this?

It is a model, and its main weakness is well known: real market returns have fatter tails than a normal distribution allows, so severe outcomes happen more often than the arithmetic implies. Returns also show some tendency to mean revert over long periods, which works the other way. Treat the figures as the right order of magnitude rather than precise probabilities.

Does this account for inflation?

No. Everything here is in nominal terms, so a loss means ending with fewer dollars than you started with. Preserving purchasing power is a higher bar and would show a materially higher probability of failure at short horizons. Enter a real return, meaning your expected return less inflation, if you want the answer in those terms.

Why does this not use historical data?

Because a single history is one sample of what could have happened, and quoting it as a probability implies more precision than it carries. Driving the model from assumptions you set makes those assumptions visible and lets you test how much they matter, which is more useful than a fixed figure derived from one market over one period.

Minimum Investment Efficiency Calculator NZ 2026/27

How small is too small to invest?

It depends entirely on the fixed cost per transaction. On the worked example a $3.00 brokerage charge plus 0.50% on a $50.00 investment costs $3.25, which is 6.50% of the contribution. To get the total cost under 1.00% you would need to invest $600.00 at a time. With no fixed cost at all, no amount is too small.

What is the minimum efficient investment size?

Divide the fixed cost by the difference between your cost threshold and the percentage charge. On the worked example, getting under 2.00% needs $200.00 per transaction, under 1.00% needs $600.00 and under 0.75% needs $1,200.00. Anything at or below the percentage charge itself, in this case 0.50%, is unreachable no matter how much you invest.

Is it better to invest monthly or less often?

With a fixed cost per transaction, less often is dramatically cheaper. On the worked example, $600.00 a year costs $159.00 invested weekly, $39.00 monthly and $6.00 in a single annual payment. That is the same money going in, with the cost varying by a factor of more than twenty-six purely from how many times it is split.

Does zero brokerage really change things?

Completely, and it is the single most important input on the page. With no fixed cost the total is just the percentage, so on the worked example investing monthly and investing annually both cost 0.50%. Frequency becomes free, minimum sizes stop mattering, and small regular investing becomes as efficient as large occasional investing.

Should I wait and save up before investing?

Only if the fixed cost is high relative to what you can invest. Batching contributions into fewer, larger transactions reduces cost but leaves the money in cash for longer, which has its own cost. Where the fixed charge is zero the trade-off disappears entirely and there is no reason to wait, which is why the fixed cost is worth checking before changing your habits.

How much do these costs add up to?

On the worked example, $390.00 over ten years on $6,000.00 invested, which is 6.50% of everything contributed. Had those costs been invested instead at a 7.00% return, they would have been worth $562.53 by the end. The reason it compounds is that the cost is taken at the start of each contribution's life, so it forgoes the longest possible run of growth.

What is the difference between a minimum investment and a minimum efficient investment?

A minimum investment is what a provider will let you put in, which on many New Zealand platforms is now a dollar or less. A minimum efficient investment is what makes sense given the costs, which is a different and usually larger number. A platform can accept $1.00 and still charge you a fixed fee that makes $1.00 an absurd amount to invest.

Does this apply to KiwiSaver?

Generally not, because KiwiSaver contributions are not charged per transaction. Employer and employee contributions flow in each pay without a fixed fee, so frequency costs nothing and there is no minimum efficient size. This calculation applies to direct investing where a brokerage or transaction charge is levied on each purchase.

One Fund vs Multi-Fund Calculator NZ 2026/27

Is one fund or several funds better?

It depends far more on the portfolio size and your time than on the funds. On the worked example, assembling four funds at a blended 0.27% instead of one fund at 0.30% saves $30.00 a year in fees on $100,000.00, costs $12.00 a year in trades, and takes three hours. The net gain of $18.00 a year works out at $6.00 an hour, which most people would not take.

How much does building my own portfolio pay per hour?

On the worked example, $6.00 an hour at a $100,000.00 balance. It scales with the portfolio, because the fee saving grows with the balance while the trading cost does not. At $50,000.00 it is $1.00 an hour, at $250,000.00 it is $21.00 and at $500,000.00 it is $46.00. Below $40,000.00 it pays nothing at all, because the trades cost more than the fee saving.

At what portfolio size does a multi-fund portfolio start to pay?

On the worked example, $40,000.00, which is where the annual fee saving of 0.03% first covers the $12.00 of trading costs. Below that the do-it-yourself portfolio loses money before your time is counted at all. That threshold moves directly with the fee gap and the trading cost, so it is worth calculating with your own numbers rather than assuming.

How much is the difference over twenty years?

On the worked example, $1,585.02 in favour of the multi-fund portfolio, which is $367,422.66 against $365,837.64. That is a difference of 0.43% of the final balance for sixty hours of work over the period. The compounding is real but small, because it is compounding a three hundredth of a percent.

What if the single fund charges less?

Then the comparison reverses quickly. On the worked example, a single fund at 0.25% rather than 0.30% turns the multi-fund portfolio's $18.00 annual advantage into a $32.00 disadvantage, and the twenty-year difference from $1,585.02 ahead to $1,858.95 behind. A five hundredth of a percent on the single fund's fee decides the whole question, which is why it should be the first number you check.

Is a blended fee the same as an average fee?

No. The blended fee weights each fund's fee by how much you hold in it, not by how many funds there are. On the worked example the simple average of 0.20%, 0.30%, 0.45% and 0.35% is 0.325%, while the blended fee is 0.27%, because most of the money sits in the cheapest fund. Averaging the fees overstates the cost by a fifth here.

What does a multi-fund portfolio give me that one fund does not?

Control over the weights. A single global fund gives you the market's allocation, which for a New Zealander means almost no exposure to their home market and a large weight to the United States. Assembling it yourself lets you set those weights deliberately. That control is the actual product being bought here, and this page prices what it costs rather than judging whether it is worth having.

Does this account for tax differences?

No, and it can matter. Funds holding foreign shares are taxed under the fair dividend rate on 5% of value at your PIR, while New Zealand and Australian share funds are taxed on dividends only. A multi-fund portfolio that shifts weight between those categories changes the tax as well as the fee, and that effect can be larger than the fee difference this page measures.

PIE Savings vs Bank Savings Calculator NZ 2026/27

Is a PIE savings account better than a bank savings account?

It depends on the gap between your PIR and your marginal tax rate. On the worked example, $30,000.00 at 2.50% in a PIE taxed at a 28% PIR nets $540.00, while the same rate in a bank account taxed at a 33% marginal rate nets $502.50. The PIE is ahead by $37.50 a year on identical headline rates. If your marginal rate is 28% or below there is no advantage at all, because the PIR cap is the entire mechanism.

Why does a PIE pay more when the rate is the same?

Because the prescribed investor rate is capped at 28% while marginal income tax rates go to 39%. A 33% taxpayer holding an ordinary savings account pays 33% on the interest. The same person in a PIE pays 28%. The investment is identical and the return before tax is identical; only the rate applied to it differs, and that difference is worth 5 percentage points of the interest earned.

What bank rate would I need to match a PIE?

On the worked example, 2.69%. A PIE paying 2.50% taxed at 28% nets 1.80% after tax. To net the same 1.80% from a bank account taxed at 33%, the bank would have to pay 2.69%. That is the number to carry into a rate comparison, because comparing advertised rates directly will consistently mislead you in favour of the bank account.

Does a PIE help if I am on a low tax rate?

No. Someone on a 17.5% marginal rate will have a 17.5% PIR, so both accounts are taxed identically and there is no advantage from the wrapper at all. On the worked example at that combination, both net $618.75 on $30,000.00. The PIE structure only helps where your marginal rate exceeds your PIR, which in practice means taxpayers on 30%, 33% or 39%. Below that, choose purely on the headline rate and the terms.

How much is the PIE advantage worth at the top tax rate?

On the worked example, $82.50 a year on $30,000.00 for someone on a 39% marginal rate with a 28% PIR. That is a difference of 11 percentage points on the interest, which is the largest gap available under the current rate structure. Expressed as an effective rate, the PIE nets 1.80% against the bank account's 1.53% on identical headline rates.

Is my PIR the same as my tax rate?

No, and confusing them is a common and costly error. The PIR is worked out from your income across the last two years, using both your taxable income and your PIE income, and it is capped at 28%. The rates are 10.5%, 17.5% and 28% only. Your marginal income tax rate has more brackets and rises to 39%. Getting your PIR wrong means either overpaying or underpaying tax, and both are corrected at year end.

Is a PIE savings account as safe as a bank account?

They are different legal structures and the comparison is not purely about tax. A bank deposit is a debt owed to you by the bank. A PIE is a managed fund in which you hold units, and what it invests in determines the risk. A PIE savings product holding bank deposits and short-term instruments is low risk but not identical to a deposit. Check what the fund actually holds and read the product disclosure statement rather than assuming equivalence.

Does the deposit compensation scheme change the comparison?

It can, and it is worth checking rather than assuming. New Zealand has introduced a depositor compensation scheme covering eligible deposits at licensed deposit takers up to a per-depositor limit. Whether a particular PIE savings product is covered depends on its structure and on where the underlying money sits. Since coverage and limits have changed recently, confirm the current position with the provider and with the Reserve Bank before treating the two options as equivalent on safety.

Regular vs Lump Sum Investing Calculator NZ 2026/27

Is it better to invest a lump sum or spread it out?

Investing at once wins on average, because markets rise more often than they fall and the drip leaves money sitting in cash earning less. On the worked example of $60,000.00 spread over 12 months, the lump sum finishes $1,289.01 ahead, which is 2.15% of the amount. The drip wins in any year the market returns less than cash.

What is the break-even for drip feeding?

It is exactly your cash rate, and that is not an approximation. If the market returns precisely what your savings account pays over the drip window, it makes no difference where the money sat, so both approaches finish identical. Below that the drip wins and above it the lump sum wins. On the worked example the break-even is 2.35%.

How much does drip feeding cost me?

Roughly half the gap between the market return and your cash rate, multiplied by the length of the drip, because on average the money spends about half the window waiting. On the worked example that is $1,289.01 over 12 months. Stretching the same amount over 36 months costs $4,560.58 instead.

Does dollar cost averaging protect me in a crash?

Yes, and materially. On the worked example, if the market falls 30.00% over the drip window the drip finishes $8,287.50 ahead, which is 13.81% of the amount. In a 50.00% fall it is $12,550.00 ahead. You are paying a small expected cost for a real reduction in the worst case.

Does this apply to my regular KiwiSaver contributions?

No, and this is the most common confusion about the topic. Contributing each payday is not dollar cost averaging in the sense being compared here. There is no lump sum sitting in cash, so there is no alternative to weigh it against. You are simply investing money as it arrives, which is the only thing you could do.

How long should the drip be if I choose one?

Short. The cost rises roughly in proportion to the length while the psychological benefit does not, so a long drip pays more for the same reassurance. On the worked example three months costs $225.25 and 24 months costs $2,841.92, for the same eventual position.

What if I am sure the market is about to fall?

Then you are making a market timing call, not choosing a contribution method, and it should be judged as one. The drip is a reasonable way to act on genuine uncertainty about your own reaction. It is a poor way to act on a conviction that markets are overvalued, because it only partly expresses that view and does so on an arbitrary schedule.

Is the money waiting to be invested earning anything?

It should be, and this calculation assumes it is. Money queued for a future tranche belongs in a savings or on-call account earning interest, not in a transaction account. That interest is exactly why the break-even lands on the cash rate rather than on zero.

Savings To Investment Switch Calculator NZ 2026/27

How long do I need to invest for?

Long enough to absorb a bad start. On the worked example, if a 20% fall happens immediately after investing $30,000.00, it takes until year 8 for the invested path to get back ahead of the money having stayed in cash. If your horizon is comfortably beyond that, timing is not the deciding factor. If it is not, the horizon is too short for those assets rather than the moment being wrong.

How big a fall can my horizon absorb?

On the worked example, a 10-year horizon absorbs a fall of up to 25.82% immediately after investing and still matches what cash would have done. A 5-year horizon absorbs 11.62% and a 3-year horizon only 5.20%. That collapse at the short end is the honest argument for leaving near-term money in savings, and it does not depend on any view about markets.

Is three years long enough to invest?

On these assumptions, no, for money in growth assets. A 3-year horizon can only absorb a 5.20% fall before it would have been better off in savings, and falls larger than that are common. Three years is a horizon for cash or a term deposit. The calculator will show this for your own numbers rather than asking you to take it on trust.

Should I wait for a better time to invest?

The calculation argues against it in most cases, because it shows that a bad entry is survivable at a long horizon while lost years are not recoverable at any horizon. On the worked example a 20% fall costs eight years of catching up, but the smooth path is already $14,859.94 ahead of cash by year ten. The cost of waiting compounds every year; the cost of a bad entry happens once.

What if the fall is larger than 20%?

The recovery lengthens quickly. On the worked example a 10% fall recovers past cash in year 5, a 20% fall in year 8, a 30% fall in year 12 and a 50% fall not until year 22. The relationship is not proportional, because the money has to make up both the fall and everything the cash path earned in the meantime, so testing more than one fall size is worthwhile.

Does this predict what markets will do?

No, and it is not trying to. It applies one fall at the start and a steady return afterwards, which is not how markets behave. The output is a stress test of your horizon, not a projection of your balance. Real sequences are messier in both directions, and a fund that averages the return used here will spend individual years well above and well below it.

Does the tax basis change the horizon?

Yes, because it changes the net return that has to close the gap. A foreign shares PIE is taxed on 5% of its value each year under the fair dividend rate regardless of the actual return. A New Zealand and Australian shares PIE is taxed on dividends only. An income PIE is taxed on the whole return. A lower net return means a longer recovery, so pick the basis that matches what the fund holds.

Should I move the money gradually instead?

Moving in instalments reduces the impact of any single entry point and lengthens the exposure to cash drag at the same time, so it trades one cost for another. It is often the right answer for behavioural reasons rather than mathematical ones, because a plan you will actually follow beats an optimal one you abandon after a bad month. This page models a single move, which is the harder case.

Total Cost Of Owning A US ETF Calculator NZ 2026/27

What does a US ETF actually cost a New Zealander?

Far more than the expense ratio. On the worked example a $60,000.00 holding in a fund charging 0.09% costs $1,197.00 a year in total, which is 1.995% of the holding and 22.2 times the expense ratio. The fund fee is $54.00 of that, or 4.51%. The largest component by a wide margin is New Zealand's foreign investment fund tax at $990.00.

Why is the expense ratio so misleading?

Because it is the only cost the fund itself charges, and four of the five costs come from elsewhere. Foreign exchange is charged by the platform, brokerage by the broker, withholding tax by the United States and foreign investment fund tax by Inland Revenue. On the worked example those four together are $1,143.00 against $54.00 of fund fee, so shopping on the expense ratio alone compares 4.51% of the cost.

What is the FIF de minimis threshold?

If the total cost of all your offshore shares is NZ$50,000 or less, the foreign investment fund rules do not apply and you are taxed on the actual dividends instead. Above that they apply to everything you hold, not just the excess. It is measured on original cost, not current value, which means a holding that has grown a long way can still be under the threshold.

How much does crossing the FIF threshold cost?

On the worked example, $849.60 a year on a $60,000.00 holding: $347.40 under the threshold against $1,197.00 above it. It is a cliff rather than a slope, so a portfolio costing $50,001.00 pays $997.52 a year while one costing $50,000.00 pays $289.50. One extra dollar of cost changes the annual bill by $708.02.

How is FIF tax calculated?

Under the fair dividend rate method, you are treated as earning 5% of the opening market value each year and taxed on that at your marginal rate, whatever the fund actually returned. At a 33% rate that is 1.65% of the holding a year. Importantly, the actual dividends are not separately taxable on top of it, because the deemed 5% replaces them.

Do I still pay US withholding tax under the FIF rules?

Yes. It is deducted at source by the United States before the dividend reaches you, regardless of how New Zealand taxes you afterwards. On the worked example that is $117.00 a year, being 15% of $780.00 of dividends. Whether a credit for it can be claimed against your New Zealand tax when the FIF rules apply is a complex question, so this page counts it as a cost rather than assuming relief.

Does the holding period change the cost?

Yes, on the foreign exchange component. Converting into US dollars is a one-off charge, so the calculator spreads it across the years you intend to hold. On the worked example a 0.60% fee over ten years is $36.00 a year. Hold for two years instead and the same fee costs $180.00 a year, which is why short holding periods make foreign exchange charges matter far more.

Is a New Zealand domiciled fund cheaper?

Often, once everything is counted, and it depends on the fund. A New Zealand PIE holding foreign shares is taxed under the same fair dividend rate rules but at your prescribed investor rate, capped at 28%, rather than your marginal rate which can reach 39%. It also removes the foreign exchange conversion and the brokerage. Compare on total cost of ownership rather than on the expense ratio, which is the entire point of this page.

US Share FX Cost Calculator NZ 2026/27

How much does it cost to convert NZD to USD to buy US shares?

It depends entirely on your platform's FX fee, which commonly ranges from about 0.3% to 1.5%. On the worked example, converting $10,000.00 at a 1.50% fee costs $150.00, so you receive US$5,762.25 instead of the US$5,850.00 you would get at the spot rate of 0.5850. That is US$87.75 of purchasing power gone before you have bought a single share.

Is the FX fee bigger than the brokerage on US shares?

For New Zealand investors, usually yes, and often by a wide margin. Several platforms now charge no brokerage at all on US shares while still charging one to one and a half percent on the currency conversion. On a $10,000.00 purchase, a 1.50% FX fee is $150.00 against brokerage that may be zero. Comparing platforms on brokerage alone is the most common and most expensive mistake New Zealand investors make when buying offshore.

What gain do I need just to break even after the FX fee?

Slightly more than the fee itself. On the worked example a 1.50% fee requires a 1.52% gain to return to your starting position, because the gain has to be earned on the smaller amount that survived the conversion. The gap widens as the fee rises: a 3% fee needs a 3.09% gain. This is also before any cost of converting back, which is a separate charge on the way out.

What difference does the FX fee rate actually make?

On a $10,000.00 conversion, a 1.50% fee costs $150.00, a 0.60% fee costs $60.00 and a 0.40% fee costs $40.00. The difference between the highest and lowest is $110.00 on a single transaction. For an investor converting $2,000 a month, that same rate difference is $264.00 a year, every year, on money that has not been invested yet.

What is the spot rate and why does it matter?

The spot or mid-market rate is the genuine market rate at that moment, sitting midway between what buyers and sellers are quoting. It matters because a platform can charge a low headline FX fee and still make money by offering you a rate that is not the spot rate. If you compare the rate you were given against the spot rate at the same moment, any gap is an additional cost that no fee schedule discloses.

Should I convert a large amount at once or in smaller amounts?

Where the fee is a flat percentage, the cost is the same either way: ten conversions of $1,000 at 1.50% cost the same as one conversion of $10,000. Where a platform charges a fixed dollar fee per conversion, or where a percentage fee has a minimum, fewer and larger conversions are cheaper. The separate question of whether to convert all at once or spread it to reduce exchange rate risk is a different decision and depends on the rate rather than the fee.

Do I pay the FX fee again when I sell?

Yes, if you convert the proceeds back to New Zealand dollars. The conversion is charged in both directions, so the round trip at a 1.50% fee costs close to 3% in total. That is worth knowing before you buy, because it raises the return you need for the investment to have been worthwhile, and it is a strong argument for holding US assets for long periods rather than trading them frequently.

Does the FX fee apply to dividends too?

It depends on the platform and on whether you leave dividends in US dollars. Dividends are paid in USD, so if they are automatically converted to NZD each time, you are paying the FX fee on every distribution, which on a small dividend is a meaningful percentage. Where a platform lets you hold a USD balance and reinvest without converting, that cost disappears. It is worth checking which your platform does.

Co-Ownership Equity Share Calculator NZ

What is the difference between joint tenants and tenants in common?

Joint tenants own the whole property together in undivided shares, and if one dies their interest passes automatically to the survivor regardless of any will. Tenants in common own defined shares which can be unequal, and each share passes under that person's will. Unequal deposits almost always point to tenants in common, because it is the only structure that can record the difference on the title.

Do ownership shares have to match the deposits?

No. The shares can be whatever the co-owners agree, and they are recorded on the title. What matters is that the shares reflect a decision rather than an accident. If the deposits are unequal but the loan is shared equally, then equal shares would quietly transfer value from the larger depositor to the smaller one, which is fine if both understand it and a problem if they do not.

Should deposits be returned before the gain is split?

There is no rule, and both methods are used. Returning each deposit first and then splitting only the growth treats the deposits as loans to the arrangement, which usually suits the person who put in more. Splitting everything by ownership share treats the deposits as having bought a share outright, which usually suits the person who put in less. Whichever is chosen, write it into a property sharing agreement before settlement rather than arguing about it at sale.

It is a written agreement between co-owners covering the things the title cannot record: how the mortgage and outgoings are shared, what happens if one person wants out, how the property is valued in that case, who has first right to buy the other out, and how proceeds are divided on sale. It has no standard form and is prepared by a lawyer. Buying together without one is the single most common cause of co-ownership disputes.

Are both co-owners liable for the whole mortgage?

Usually yes. A joint mortgage normally makes each borrower liable for the entire debt rather than for their own share of it, so if one person stops paying the lender can pursue the other for all of it. That liability is separate from the ownership shares on the title and is not changed by any agreement between the co-owners, which is a point worth being clear about before signing.

Settlement Funds Shortfall Calculator NZ

What costs come out of settlement rather than being billed later?

More than most buyers expect. The balance of the purchase price is the obvious one, but your solicitor's fees, the registration and search fees, and the outgoings apportionment owed to the vendor for rates and levies they have paid in advance are all settled on the day. That means the money has to be in the trust account beforehand, not paid out of your next pay.

When do the funds have to be with my solicitor?

In cleared funds before settlement, and your solicitor will tell you the deadline, which is normally the working day before at the latest. Bank transfers between institutions can take longer than people assume and daily transfer limits catch buyers out regularly, so moving money in one large payment on the morning of settlement is a bad plan. Ask your solicitor for the figure and the deadline as soon as the agreement goes unconditional.

Can my KiwiSaver be used for settlement?

Yes. A KiwiSaver first home withdrawal is paid by the provider directly to your solicitor's trust account and applied at settlement, which is exactly what it is designed for. The application has to be made in advance and providers need notice, so start it as soon as the purchase is unconditional. It is only at auction, where a deposit is payable on the day, that KiwiSaver cannot help.

What if the valuation came in below the purchase price?

Then the lender advances against the valuation rather than the price, and the drawdown is smaller than the approval suggested. The difference is a shortfall you have to cover in cash. Enter the actual drawdown your lender has confirmed rather than the approved amount, because the approval is the ceiling and the drawdown is what will arrive.

What happens if I cannot settle on time?

You are in default under the agreement. Interest normally runs at the default rate specified in the contract from the settlement date until you do settle, and if the delay continues the vendor can eventually cancel and pursue you for their loss. A short delay is usually survivable and expensive. The way to avoid it is to check the arithmetic weeks out rather than days out.

Compound Interest Calculator NZ 2026

What is the PIR rate for most KiwiSaver members in New Zealand?

Most employed New Zealanders earning more than $53,500 per year have a PIR of 28%. This is the most common PIR for working-age KiwiSaver members. The 28% cap means even high earners benefit from a reduced rate compared to their marginal rate of 33% or 39%. New Zealand residents on lower incomes may qualify for 17.5% or 10.5% PIR, which provides an even larger tax saving relative to the non-PIE treatment.

Is PIE tax paid upfront or at the end of the year?

PIE tax is generally deducted by the fund manager from your returns on a regular basis, often quarterly or at the time of withdrawal. For most managed PIE funds, tax is accounted for within the unit price of the fund. This means your stated balance already reflects the after-tax position - unlike non-PIE investments where returns are gross and you pay the tax later through your tax return or end-of-year assessment.

Can I have both PIE and non-PIE investments?

Yes. Many investors hold KiwiSaver as their primary PIE investment alongside term deposits, shares, or other non-PIE assets. The tax treatment applies per investment type. Calculating the after-tax return for each allows you to compare like for like and allocate savings to the most tax-efficient structure first.

What happens if I set my PIR too low?

If you use a PIR that is lower than your correct rate, IRD will require you to pay the additional tax owed, along with possible use-of-money interest. Your provider is required to use the PIR you provide, and they are not responsible for checking it is correct. You should review your PIR whenever your income changes significantly - for example, after a promotion, starting a second job, or moving into self-employment.

Dollar-Cost Averaging

What is dollar-cost averaging?

Investing a fixed amount at regular intervals regardless of price, so you buy more units when prices are low and fewer when high, smoothing your average cost.

Does dollar-cost averaging reduce risk?

It reduces the risk of investing everything at a bad time and removes the need to time the market, though it does not guarantee a profit.

Is KiwiSaver a form of dollar-cost averaging?

Yes. Regular contributions from your pay buy into your fund at varying prices, which is dollar-cost averaging in action.

Is lump-sum investing better than dollar-cost averaging?

Historically lump sums often come out ahead because markets tend to rise, but dollar-cost averaging is easier to stick to and less stressful.

Emergency Fund Guide

How much should an emergency fund be?

A common guide is three to six months of essential expenses, though the right amount depends on your job security and commitments.

Where should I keep an emergency fund?

In a separate, easily accessible savings account, so it is available quickly but not mixed in with everyday spending.

Why do I need an emergency fund?

It covers unexpected costs like car repairs, job loss or illness without forcing you into high-interest debt.

Should I build an emergency fund before investing?

Generally yes. A buffer stops you having to sell investments at a bad time when an unexpected cost arises.

Understanding PIE Funds and Tax Treatment - NZ

What is a PIE fund?

A Portfolio Investment Entity, the tax structure used by most KiwiSaver schemes and managed funds, taxing your share of income at your prescribed investor rate (PIR).

What is the maximum PIR?

The maximum PIR is 28%, so PIE income is never taxed above 28%, even for people on higher personal tax rates.

How do I work out my PIR?

It is based on your income over the last two years. The three rates are 10.5%, 17.5% and 28%.

Why are PIE funds tax-efficient?

Because the top PIR is capped at 28%, higher earners pay less tax on PIE income than they would holding the investment directly.

Shares vs Managed Funds

What is the difference between shares and managed funds?

Buying shares means owning individual companies directly; a managed fund pools your money with others to buy a diversified basket, managed for you.

Are managed funds safer than shares?

They are usually more diversified, which spreads risk, but they still rise and fall with markets and charge fees for the management.

Do managed funds have fees?

Yes, an annual management fee and sometimes others. Lower-cost index funds charge less than active funds.

Which is better for beginners?

Many beginners prefer diversified low-cost funds for simplicity and built-in diversification, rather than picking individual shares.

Savings Calculator NZ

How is savings growth calculated?

The calculator compounds your starting balance and adds each regular deposit, applying the interest rate each period. The final balance is the future value of the starting amount plus the future value of the stream of deposits. Interest earned is the final balance minus everything you put in.

Does this account for tax on interest?

No. The result is before Resident Withholding Tax (RWT). In New Zealand, interest is taxed at your RWT rate, so your real after-tax balance will be a little lower. For a conservative estimate, use a slightly lower interest rate.

What interest rate should I use?

Use the rate your savings account or term deposit pays. Everyday savings accounts pay less than term deposits. If you are unsure, a conservative figure gives a safer estimate, and you can compare current rates on our NZ Interest Rates reference page.

Why do small regular deposits add up so much?

Because of compounding. Each deposit earns interest, and that interest then earns interest. The longer the time frame, the larger the share of your final balance that comes from interest rather than your own contributions.

Car Replacement Fund Calculator NZ

How much should I save each month for a new car?

Take the price of the car you will buy, subtract what you expect from your trade-in and any savings already set aside, then divide by the months until you need it. Saving that monthly amount means you can pay cash and skip car finance.

Why save for a car instead of financing it?

Car finance adds interest, often at high rates, to a vehicle that is losing value. Saving ahead lets you pay cash, avoid that interest, and negotiate harder as a cash buyer. A regular car replacement fund makes it routine.

What should the fund target be?

Base it on the realistic price of the replacement you want, not the cheapest option, and allow for on-road costs. Once you own the car, keep the habit going so the next replacement is funded too.

Carpooling Savings Calculator NZ

How much does carpooling save?

Sharing a ride splits the fuel and running costs across the people in the car, so each person pays a fraction of driving alone. The more riders, the bigger the saving per person.

What costs does carpooling split?

Mainly fuel, and you can include a share of running costs like wear and depreciation. Parking, if shared, can be split too. This calculator splits the commute cost across riders.

Is carpooling worth it?

Financially it can save a lot over a year, especially on longer commutes, and it reduces wear on each car if you rotate drivers. The saving shown here is the financial side.

Christmas Savings Calculator NZ

How much should I save each week for Christmas?

Take your total Christmas budget for gifts, food and travel, then divide by the number of weeks until Christmas. Saving that small amount each week means you arrive at December with the money ready, instead of reaching for credit.

When should I start saving for Christmas?

The earlier the better, because more weeks means a smaller weekly amount. Starting at the beginning of the year makes Christmas almost painless to fund; starting in November means a much larger weekly saving.

How do I avoid Christmas debt?

Set a realistic budget, save toward it steadily through the year, and keep the money separate so it is not spent. This calculator shows the weekly amount, which is the key to spreading the cost rather than borrowing for it.

Compound Growth with Withdrawals Calculator NZ

What does this calculator show?

It models a lump sum that earns a return each year while you withdraw a fixed amount, showing the ending balance after your chosen period and whether the money lasts or runs out, and in which year.

What withdrawal is sustainable?

If your withdrawal is less than the return earned, the balance keeps growing. If it is more, the balance shrinks and may run out. Many drawdown plans aim to withdraw around the return rate to preserve the capital.

Does it account for inflation?

It uses a flat withdrawal and return. For a real-terms view, enter an after-inflation return, sometimes called a real return, so the figures reflect today's buying power.

Compound Interest Calculator NZ 2026

What is the Compound Interest Calculator NZ 2026?

Calculate compound interest on investments, savings, or debts. Enter your principal, interest rate, compounding frequency, and term to see total growth and ROI over time.

Is the Compound Interest Calculator NZ 2026 free to use?

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

Is the Compound Interest 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.

Compounding Frequency Calculator NZ

Does compounding frequency really matter?

Yes, though less than people expect at typical rates. The more often interest compounds, daily rather than annually, the more you earn on the same headline rate, because interest starts earning interest sooner. The gap widens at higher rates and over longer periods.

What is the difference between nominal rate and effective rate?

The nominal rate is the headline annual rate; the effective annual rate is what you actually earn once compounding is applied. Daily compounding gives a slightly higher effective rate than annual compounding on the same nominal rate.

Which compounding should I assume?

Check how your account or investment compounds; many savings accounts compound daily and pay monthly, while some investments are quoted annually. This calculator lets you compare so you can see the real difference for your situation.

Quit Smoking Savings Calculator NZ 2026

How much does smoking cost per year in NZ?

With cigarettes among the most heavily taxed products in the country, a pack-a-day habit can cost well over $10,000 a year. Vaping is cheaper but still adds up. This calculator works out your weekly, yearly and long-term cost from what you actually spend.

What could I save by quitting?

Over a decade, a daily habit commonly adds up to more than $100,000, and invested instead, considerably more. Seeing the total, and what it could grow to, is a strong financial motivator on top of the major health benefits of quitting.

Where can I get help to quit in NZ?

Free support is available through Quitline on 0800 778 778, and from your doctor or pharmacist, who can advise on patches, gum and other aids. The health benefits of quitting begin within days and far outweigh the money saved.

Debt Payoff vs Emergency Fund Calculator NZ

Should I pay off debt or build an emergency fund first?

A common approach is to build a small starter emergency fund first for security, then throw everything at high-interest debt, because the interest saved usually beats the low return on savings. This tool shows the cost of building the full fund before tackling the debt.

Why does building the fund first cost money?

While you direct cash to savings rather than debt, the debt keeps charging interest at a high rate, far above what the savings earn. The gap between the two rates is the cost of putting the fund first, which this calculator estimates.

How big should an emergency fund be?

Three to six months of essential expenses is a common target, but when you carry expensive debt a smaller starter fund of around 1,000 dollars often strikes the best balance between security and saving on interest.

Debt vs Invest Calculator NZ

Should I pay off debt or invest?

Compare your debt's interest rate with the after-tax return you could earn investing. Repaying debt gives a guaranteed return equal to the interest rate saved; investing offers a higher but uncertain return. Clearing high-interest debt, like credit cards, almost always wins.

Why is repaying debt a guaranteed return?

Every dollar of debt you repay saves you that debt's interest rate for certain, with no risk. So paying off a 20% credit card is like earning a risk-free 20%, which beats almost any investment.

When does investing win?

When your expected after-tax investment return is comfortably above your debt rate, and you can tolerate the risk. For low-rate debt like a cheap mortgage, investing the difference may come out ahead over the long run, though not guaranteed.

House Deposit Savings Calculator NZ 2026

What is the House Deposit Savings Calculator NZ 2026?

Calculate how long it takes to save a house deposit in NZ. Enter property price, current savings, KiwiSaver balance, and monthly savings to see your 10%, 20%, 25% deposit timelines. Includes KiwiSaver first home withdrawal.

Is the House Deposit Savings Calculator NZ 2026 free to use?

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

Is the House Deposit Savings 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.

Dividend Calculator NZ

What are imputation credits?

Imputation credits represent the company tax already paid on the profit before it was paid to you as a dividend. New Zealand company tax is 28%, so a fully imputed dividend carries a credit for that tax. You can use the credit to offset your own tax on the dividend, which avoids the profit being taxed twice.

How is tax on dividends calculated in NZ?

The gross dividend is the cash dividend plus its imputation credits. Tax is charged on the gross amount at your rate, usually 33% for dividends. The imputation credit covers most of that, and the payer withholds a further 5% as resident withholding tax so the total reaches 33%.

What is the dividend yield?

Dividend yield is the annual dividend per share divided by the share price, shown as a percentage. A $1.00 share paying 6 cents a year has a 6% yield. It lets you compare the income from shares of different prices.

Dividend Imputation Gross-Up Calculator NZ

What is dividend gross-up?

Grossing up means adding the imputation credit back onto the cash dividend to find the pre-tax, or gross, dividend. You are taxed on the gross figure at your marginal rate, then the imputation credit is deducted, so you only top up to your own rate.

How big is the imputation credit?

On a fully imputed dividend the credit is the cash dividend times 28 divided by 72, reflecting the 28 percent company tax already paid. So a 720 dollar dividend carries a 280 dollar credit and grosses up to 1,000 dollars.

Will I owe more tax on a dividend?

If your marginal rate is above 28 percent you top up the difference, often collected as resident withholding tax. If your rate is below 28 percent you may have excess credits, which are not refunded to individuals but can offset other income.

Dividend Reinvestment Calculator NZ

Should I reinvest dividends?

Reinvesting dividends buys more shares, which then earn their own dividends and growth, compounding your returns. Over long periods this can add substantially to your total value compared with taking dividends as cash.

What is total return?

Total return combines share price growth and dividends. Looking only at the price misses the dividend contribution, which is large over time, especially when reinvested.

Are dividends taxed in New Zealand?

Yes, dividends are generally taxable, often with imputation credits attached. This calculator shows pre-tax growth, so allow for tax on dividend income.

Dividend Reinvestment Plan Calculator NZ

What is a dividend reinvestment plan?

A DRP automatically uses your dividends to buy more shares instead of paying cash, often without brokerage. Over time the extra shares earn their own dividends, so your holding compounds faster than relying on share price growth alone.

Are reinvested dividends still taxed?

Yes. Even though you receive shares rather than cash, the dividend is still taxable income in New Zealand, usually with imputation credits attached. You need to account for the tax even though no cash arrives in your account.

Is reinvesting always better?

For long-term growth, reinvesting usually builds more wealth thanks to compounding. But if you rely on the income, taking dividends as cash makes sense. This tool shows the difference so you can decide based on your goals.

Dollar-Cost Averaging Calculator NZ

What is dollar-cost averaging?

Dollar-cost averaging is investing a fixed amount at regular intervals, regardless of the price. It smooths out the price you pay, buying more units when prices are low and fewer when high, and removes the stress of trying to time the market.

Does dollar-cost averaging work?

It is a simple, disciplined approach that suits most everyday investors. It does not guarantee a profit, but it keeps you investing consistently through ups and downs, which is often better than waiting for the perfect moment.

How much should I invest regularly?

Choose an amount you can sustain through both good and bad markets, since consistency is the point. This calculator shows how different regular amounts build over time.

Emergency Fund Calculator NZ 2026

What is the Emergency Fund Calculator NZ 2026?

Calculate how large your emergency fund should be for New Zealand. Based on your monthly expenses and recommended 3 to 6 month coverage, see your target savings amount and a monthly plan to reach it.

Is the Emergency Fund Calculator NZ 2026 free to use?

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

Is the Emergency Fund 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.

Emergency Fund Months Calculator NZ

How many months should an emergency fund cover?

A common guide is three to six months of essential expenses, more if your income is variable or you are a single earner. The right size depends on your job security, dependants and other safety nets.

How do I work out my emergency fund in months?

Divide your current savings by your monthly essential expenses. That gives the months of runway your fund provides if your income stopped, which is the figure that really matters in an emergency.

Should I count all my spending or just essentials?

Use essential expenses, the costs you could not avoid such as rent or mortgage, food, power and transport, since in a real emergency you would cut back on discretionary spending. This gives a longer, more realistic runway.

ETF Return Calculator NZ

How do I work out ETF returns?

Combine the expected total return, which is price growth plus dividends, then subtract the fund fee. This calculator grows your investment and regular contributions at the net return over your timeframe.

Do ETF fees matter?

Yes, even a small annual fee compounds over time. ETFs are often low-fee, which is part of their appeal, but the calculator shows the drag so you can compare.

Are ETF returns guaranteed?

No. The projection assumes a steady return, while real markets rise and fall. It is a planning estimate, not a promise, and tax may apply, including the FIF rules on overseas ETFs.

ETF vs Managed Fund After-Fee Calculator NZ

Do fund fees really matter?

Hugely, over time. A fee difference of even one percent a year compounds into tens of thousands of dollars over decades, because the fee is charged every year on your whole balance and the money it takes can no longer grow.

Are ETFs always cheaper than managed funds?

Passive ETFs usually have lower fees than actively managed funds, but ETFs can carry brokerage and foreign exchange costs, and some managed funds are low-fee index funds. Compare the actual total fees rather than assuming.

Does a higher fee mean better returns?

Not reliably. On average, higher fees reduce net returns, and many active funds do not beat a low-cost index fund after fees over the long run. This tool assumes the same gross return so you can isolate the effect of the fees.

Gold Investment Calculator NZ

How do I value a gold holding?

Multiply the weight you hold by the current gold price per unit (per ounce or gram). Gold is usually priced in US dollars, so for an NZ value you also need the exchange rate, or use an NZD gold price.

Does gold earn income?

No. Gold pays no dividend or interest; your return is only the change in its price. That makes it different from shares or term deposits, and is why it is often held as a hedge or diversifier rather than for income.

Is gold taxed in NZ?

Gains on gold bought with the intention of resale can be taxable. The rules depend on your circumstances, so get tax advice for a significant holding. This calculator shows the pre-tax gain only.

Heat Pump Savings Calculator NZ

How much does a heat pump save?

A heat pump delivers several units of heat per unit of electricity, so it usually costs much less to run than plug-in electric heaters. The saving depends on what you are replacing and how much you heat.

How long until a heat pump pays for itself?

Divide the install cost by the annual running-cost saving. Replacing expensive heating with a heat pump pays back faster; replacing already-cheap heating takes longer.

Is a heat pump cheaper than my current heating?

Usually yes if you are replacing plug-in electric heaters, because of the heat pump efficiency. Compare the running costs to see the saving for your situation.

Index Fund Projection Calculator NZ

What return should I assume for an index fund?

A broad share index fund has historically returned somewhere around 7 to 10 percent a year before fees over the long run, though with big ups and downs. A conservative long-term assumption is sensible, and you should subtract the fund's fees.

Why do fees matter so much?

Fees compound against you. Even a 1 percent annual fee can cost a large share of your final balance over decades, which is why low-fee index funds are popular. The calculator subtracts the fee from the return.

Does this guarantee a return?

No. Markets are volatile and returns are never guaranteed. This is a projection based on a steady assumed return, useful for planning, not a promise of any particular outcome.

Inflation-Adjusted Savings Calculator NZ

What does inflation do to savings?

Inflation erodes the buying power of money over time. If your savings earn less than the inflation rate, they grow in dollars but shrink in what they can actually buy. This calculator shows the future balance in today's dollars so you can see the real change.

How do I keep ahead of inflation?

Your savings need to earn at least the inflation rate after tax just to hold their value. Beating it usually means accepting some investment risk; cash and low-rate accounts often lose value in real terms once tax and inflation are counted.

What is a real return?

The real return is your interest rate minus inflation, roughly. If you earn 4% and inflation is 3%, your real return is about 1%. A negative real return means your money is losing buying power even as the balance grows.

Insulation Savings Calculator NZ

How much does insulation save on heating?

Ceiling and underfloor insulation can cut heating energy noticeably, often 10% to 30% in a previously uninsulated home, because most heat is lost through the roof and floor. The saving depends on your climate, heating habits and how much insulation you add.

Does insulation pay for itself?

Ceiling and underfloor insulation is one of the cheapest efficiency upgrades, so it often pays back faster than glazing or a new heat pump, while also making the home warmer, drier and healthier.

Is insulation required for rentals?

Yes. Ceiling and underfloor insulation, where practical, has been required in rentals, and the Healthy Homes Standards set minimum requirements. Owner-occupiers are not required to insulate but benefit from doing so.

Investment Boost Calculator NZ

What is the Investment Boost in New Zealand?

Investment Boost is a tax incentive announced in Budget 2025 and in force for eligible assets first used or available for use from 22 May 2025. It lets a business deduct 20% of the cost of a new (or new-to-New Zealand) depreciable asset in the year the asset is first used, on top of normal depreciation calculated on the remaining 80% of the cost. The 20% upfront deduction reduces the asset's tax book value, so it is recoverable as income if the asset is later sold for more than its adjusted tax value. There is no cap on the value of the asset and no limit on how many assets can qualify.

What assets qualify for Investment Boost?

Investment Boost applies to most new depreciable business assets that are first used or available for use on or after 22 May 2025. This includes new plant, machinery, equipment, tools, work vehicles, and commercial or industrial buildings. Assets new to New Zealand (for example imported second-hand machinery not previously used here) can also qualify. Land does not qualify, and residential buildings are excluded. Assets that have already been used in New Zealand, trading stock, and most intangibles are also excluded. The deduction is claimed in the income year the asset is first used in the business.

How much tax does Investment Boost save?

The first-year tax saving equals your total first-year deduction multiplied by your tax rate. The total first-year deduction is the 20% upfront deduction plus normal depreciation on the remaining 80% of the cost. For example, a company buying a $100,000 asset with a 10% depreciation rate gets a $20,000 upfront deduction plus $8,000 of depreciation (10% of $80,000), a total deduction of $28,000. At the 28% company tax rate, that saves $7,840 of tax in year one, compared with $2,800 of tax saved on the $10,000 deduction available without the boost: an extra $5,040 brought forward.

Investment Boost Deduction Calculator NZ

How much can I deduct with Investment Boost?

You deduct 20 percent of the asset cost immediately, plus normal depreciation on the remaining 80 percent in the first year. This calculator shows that total and, more usefully, how much extra it is compared with normal depreciation alone.

What is the extra deduction worth?

The extra first-year deduction is 20 percent of the cost less the depreciation you would have claimed on that 20 percent anyway. Multiplied by your tax rate, that is the extra tax you save in the year you buy the asset, improving cash flow.

Is it a permanent saving?

No, it is mainly a timing benefit. Because the asset's total cost can only be deducted once, claiming more now means less depreciation in later years. The value is in bringing the deduction forward, which helps when you have just spent on the asset.

Investment Boost 20% Deduction Explained NZ

What is Investment Boost?

Investment Boost lets a business deduct 20 percent of the cost of a new eligible asset immediately, in the year it is first used, on top of normal depreciation on the remaining 80 percent. It was introduced to encourage business investment.

What assets qualify?

Generally new depreciable business assets first used on or after the start date, such as machinery, equipment and commercial vehicles. Land, residential buildings and previously-used assets are typically excluded. Check current eligibility with IRD or your accountant.

How does it save tax?

Bringing forward 20 percent of the cost as an immediate deduction reduces taxable profit in year one, so you pay less tax that year. It is a timing benefit that improves cash flow when you invest, rather than a permanent extra deduction.

Investment Calculator NZ 2026

What is the Investment Calculator NZ 2026?

Calculate how your NZ investments will grow over time. Enter a lump sum and regular contributions, choose your return rate and see total growth with NZ PIE tax applied. Compare conservative, balanced and growth scenarios with interactive charts.

Is the Investment Calculator NZ 2026 free to use?

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

Is the Investment 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.

Investment Return Calculator NZ

How do I calculate investment return with regular contributions?

Compound the starting amount forward, then add the future value of the contributions as an annuity, and add the two together. The contributions cannot simply be multiplied by the years, because each one has a different length of time left to grow.

How much of a balance is growth rather than contributions?

Less than most people expect over short periods. Over ten years at ordinary returns, contributions usually still make up most of the balance. Growth tends to overtake contributions somewhere in the second or third decade, which is the argument for starting early rather than contributing more.

Why does the inflation-adjusted figure matter?

Because it is what the money will actually buy. A projected balance in thirty years is denominated in future dollars, which purchase less than today's. Dividing by inflation over the period converts it into today's money, which is the only figure you can sensibly compare to what you spend now.

Investor Risk Tolerance Calculator NZ

What is risk tolerance?

Risk tolerance is how much ups and downs you can handle, financially and emotionally, in pursuit of higher returns. It shapes the mix of growth assets like shares and defensive assets like cash and bonds that suits you.

What do the profiles mean?

From conservative to aggressive, profiles hold progressively more in growth assets. Conservative leans on cash and bonds for stability, while growth and aggressive hold mostly shares for higher long-term returns and bigger swings.

Does my time horizon matter?

Yes, hugely. A long horizon lets you ride out market falls, so it supports more growth assets. Money you need within a few years should sit in safer assets regardless of how bold you feel.

PIR Optimisation Calculator NZ

What is a PIR?

The Prescribed Investor Rate is the tax rate applied to income from a Portfolio Investment Entity, which includes most KiwiSaver and managed funds. The rates are 10.5, 17.5 and 28 percent, set by your income.

How is my PIR worked out?

It uses the lower of your last two years' income. If that income is 15,600 dollars or less and combined with PIE income is 53,500 or less, your PIR is 10.5 percent. Up to 53,500 income and 78,100 combined gives 17.5 percent. Above that it is 28 percent.

What if my PIR is wrong?

Too high and you have overpaid tax, which since 2020 Inland Revenue may refund at year end. Too low and you will owe tax. Giving your provider the correct PIR avoids both, and is one of the easiest tax wins available.

Managed Fund Return Calculator NZ

How do fees affect a managed fund?

The management fee is charged each year on your whole balance, so it compounds against you. Even a difference of half a percent can cost tens of thousands of dollars over decades, which is why low fees matter as much as returns.

How is a managed fund taxed in NZ?

Most NZ managed funds are PIEs, taxed at your Prescribed Investor Rate (PIR), capped at 28%. The fund pays the tax on your behalf, so your published return is usually after fees but before your PIR; this calculator lets you allow for both.

Do regular contributions help?

Yes. Adding a regular amount harnesses dollar-cost averaging and compounding, and usually contributes most of the final balance over a long period, more than the starting lump sum.

Multi-Policy Bundle Saving Calculator NZ

How much do insurance bundles save?

Multi-policy discounts in New Zealand are often around 5 to 15 percent off the combined premium when you hold several policies, such as house, contents and car, with one insurer. Enter your discount to see the dollar saving.

Is bundling always cheaper?

Not always. A discount on a higher base premium can still cost more than separate policies from cheaper insurers. Compare the bundled price against the best individual quotes, not just the headline discount.

What can I bundle?

Commonly house, contents, car and sometimes boat or landlord cover. The more policies you hold with one provider, the larger the discount usually is.

Pet Insurance vs Savings Calculator NZ

Is pet insurance worth it?

It depends on the premium versus the risk. Insurance covers a large unexpected vet bill, including early on before you have saved much. Self-insuring keeps the premiums but leaves you exposed to a big bill before your fund grows.

What is self-insuring a pet?

Self-insuring means saving the amount you would have paid in premiums into your own fund for vet bills. Over time it can build a useful buffer, but a major bill early on could exceed it.

Which is better, insurance or savings?

Insurance suits those who could not absorb a large vet bill and want certainty. Self-insuring can suit disciplined savers who can cover a big bill from other means while the fund grows. The calculator compares the totals.

Portfolio Allocation by Age Calculator NZ

How should my portfolio change with age?

A common rule of thumb is to hold a growth percentage equal to about 110 minus your age in shares and other growth assets, with the rest in defensive assets like bonds and cash. Younger investors hold more growth because they have time to ride out volatility.

What are growth and defensive assets?

Growth assets are shares and property that aim for higher long-term returns with more ups and downs. Defensive assets are bonds, term deposits and cash that are steadier but return less. The mix sets your expected return and how bumpy the ride is.

Is the rule of thumb right for everyone?

No. It is a starting point, not advice. Your goals, when you need the money, and how comfortable you are with ups and downs matter just as much as age. Adjust for your own risk appetite and seek advice for big decisions.

Portfolio Rebalancing Calculator NZ

What is portfolio rebalancing?

Rebalancing brings your portfolio back to its target mix of asset types after market movements have shifted it. It keeps your risk level in line with your plan rather than letting a strong run push you into more risk than intended.

How often should I rebalance?

Common approaches are once a year or when an allocation drifts beyond a set band. Rebalancing with new contributions, by directing them to the underweight asset, can avoid selling and any tax on gains.

Should I sell to rebalance?

You can rebalance by selling the overweight asset and buying the underweight one, or more gently by directing new contributions to the underweight asset until the mix is restored.

Postgrad Study vs Work & Invest Calculator NZ 2026

Is postgraduate study worth it financially?

It depends on the cost, the salary uplift and what you could earn investing instead. If the net benefit here is positive and the payback is within a reasonable time, study stacks up. Employer-funded study, which removes the tuition cost, changes the maths dramatically in study's favour.

Why compare against investing?

The money and time spent studying could instead be kept earning and invested. Comparing the postgrad's net benefit against what the tuition would grow to if invested shows whether study beats the simple alternative of working and growing your money.

What is the biggest cost of full-time postgrad study?

Usually the income you give up while studying, not the tuition. A one-year full-time course can mean forgoing a full salary, which often exceeds the fees. Studying part-time while working reduces this cost sharply.

Private Health Insurance vs Self-Fund Calculator NZ

Is private health insurance worth it in New Zealand?

It buys faster access to elective surgery and specialist care than the public system, and certainty. Whether it is worth the premiums depends on your health, age and how much you value avoiding public waiting lists. Premiums rise steeply with age.

What does self-funding mean?

Instead of paying premiums, you set aside and invest the same money, building a pot to pay for private treatment yourself if you need it. If you stay healthy you keep the pot; if you have a large or early claim, insurance would have paid more than you saved.

What is the catch with self-funding?

A major health event early on could cost far more than your pot has grown to, which is exactly the risk insurance covers. Self-funding works best as a backup to the public system for those who can absorb the risk.

Property Investment Calculator NZ 2026

What is the Property Investment Calculator NZ 2026?

Calculate the full return on a NZ investment property. Enter purchase price, rent, expenses, mortgage, and tax settings to see rental yield, annual cash flow, total ROI including capital gain, and after-tax return. Includes interest deductibility and bright-line rules.

Is the Property Investment Calculator NZ 2026 free to use?

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

Is the Property Investment 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.

Property Portfolio Equity Calculator NZ

How do I work out equity across several properties?

Add up the value of every property, then subtract the total of all loans against them. The difference is your portfolio equity. The loan-to-value ratio is total loans divided by total value, expressed as a percentage.

What is usable equity in a portfolio?

Lenders usually let you borrow up to a share of your properties' value, often around 80%. Usable equity is that limit less your current loans; it is the equity you could draw on for another purchase, subject to lending rules.

Why track portfolio LVR?

Your overall loan-to-value ratio affects what you can borrow and your risk if values fall. Seeing it across the whole portfolio, rather than property by property, gives the true picture lenders look at.

Regular vs Lump Sum Calculator NZ

Is it better to invest a lump sum or spread it out?

On average, investing a lump sum sooner gives a higher expected return because the money is in the market longer. Spreading it out reduces the risk of buying right before a fall, at the cost of some expected return.

What is drip-feeding?

Drip-feeding means investing the lump sum in equal instalments over a period rather than all at once, which smooths the entry price and the emotional risk of bad timing.

Which should I choose?

If you can tolerate the risk, investing sooner usually wins on average. If a sharp fall soon after would worry you out of the market, drip-feeding can be the more comfortable choice.

Savings Account Interest Calculator NZ

How is savings account interest calculated?

Most NZ savings accounts calculate interest daily on your balance and pay it monthly. The annual rate is divided across the days, so a higher balance and a higher rate both earn more. Bonus-rate accounts pay extra if you meet conditions like no withdrawals.

Is savings interest taxed?

Yes. Resident Withholding Tax (RWT) is deducted at your chosen rate (matching your income tax rate). This calculator shows interest before and after RWT so you see what actually lands in your account.

How do regular deposits help?

Adding money regularly grows the balance that earns interest, so your interest compounds over time. Even small, consistent deposits make a meaningful difference over a year or more.

Savings Goal Calculator

How much should I save each month?

It depends on your goal, your timeframe, and the interest you earn. This calculator works backwards from your target to the monthly amount needed, taking into account any savings you already have and the return on your balance.

Does the interest rate make a big difference?

Over short periods the rate has only a small effect, but over many years it can noticeably reduce the amount you need to save, because the interest does some of the work. Try changing the rate to see the impact for your timeframe.

Is the interest taxed?

In New Zealand interest is taxable and resident withholding tax is usually deducted at your rate. This calculator shows the gross return, so your real after tax result will be slightly lower. Use a conservative rate to allow for that.

Savings Rate Calculator NZ

What is a savings rate?

Your savings rate is the share of your take-home income that you save or invest, as a percentage. It is one of the most powerful numbers in personal finance, because a higher rate both grows your savings faster and lowers the spending you need to fund.

What is a good savings rate?

There is no single right number, but lifting your rate even a few percentage points makes a big difference over time. Many people aim for 10% to 20%, and those pursuing financial independence aim much higher.

Why does the savings rate matter so much?

It works on both sides at once: saving more builds your fund faster and means you live on less, so you need a smaller fund. That double effect is why it matters more than almost any other number.

Share Investor vs Trader Tax Calculator NZ

There is no general capital gains tax, so a long-term investor often is not taxed on gains from New Zealand and Australian shares. But if you are trading, or bought intending to resell, gains can be taxable as income.

What are the FIF rules?

If your overseas shares, outside Australia, cost more than a threshold, the foreign investment fund rules generally apply, taxing a deemed return rather than just dividends. The threshold is set by Inland Revenue.

Am I an investor or a trader?

It depends on your intention and activity. Holding for the long term and for dividends points to investing; frequent buying and selling for profit points to trading, where gains are taxable. The line can be unclear, so get advice.

Sinking Fund Calculator NZ

What is a sinking fund?

A sinking fund is money you set aside regularly to cover a known future cost, such as annual rates, insurance or car registration. Instead of a big bill landing all at once, you build the money up steadily so it is ready when the bill arrives.

How do I work out my sinking fund amount?

Add up your known yearly costs, then divide by how often you want to set money aside, weekly, fortnightly or monthly. This calculator does that across several costs so you know the single regular amount to put away.

Why use a sinking fund?

It turns lumpy, predictable bills into a smooth, manageable habit, so the big ones never blow your budget or push you into debt. It is one of the simplest ways to take the stress out of irregular expenses.

Term Deposit Break Cost Calculator

Why do banks reduce the interest rate when you break a term deposit?

The agreed rate rewards you for leaving the money untouched for the full term. If you break early the bank recalculates your interest at a lower rate for the period the funds were actually held. The difference is the cost of early access.

How is the break cost calculated?

You work out interest at the agreed rate for the days elapsed, then interest at the reduced rate for the same days. The penalty is the difference between the two. Some banks also charge a separate administration fee.

Can I avoid the break cost?

Sometimes. A few banks allow a partial withdrawal or a notice period at less cost. Check your specific terms, since the reduction and any fees vary between providers and products.

Term Deposit Ladder Calculator NZ

What is a term deposit ladder?

A ladder splits your money across several term deposits that mature at different times, such as in 3, 6, 9 and 12 months. As each matures you can access that portion or reinvest it, balancing access with the higher rates of longer terms.

Why ladder term deposits?

Laddering means you are never locked out of all your money at once and you smooth out interest rate changes, since you reinvest a portion at the prevailing rate each time a rung matures.

Is term deposit interest taxed?

Yes, interest is taxable and resident withholding tax is usually deducted at your rate. This calculator shows interest before tax, so allow for tax on the returns.

Term Deposit Calculator NZ 2026

What is the Term Deposit Savings Calculator NZ 2026?

Calculate the maturity value and interest earned on any NZ term deposit. Enter principal, interest rate, and term length to see gross interest, tax at your PIR rate, and net return.

Is the Term Deposit Savings Calculator NZ 2026 free to use?

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

Is the Term Deposit Savings 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.

Term Deposit vs PIE Fund After-Tax Calculator NZ

Why might a PIE term fund beat an ordinary term deposit?

A PIE is taxed at your prescribed investor rate, capped at 28 percent, while an ordinary term deposit's interest is taxed at your marginal rate, up to 39 percent. At the same gross rate, a higher earner keeps more in a PIE after tax.

Are the gross rates the same?

Not always. Banks offer both ordinary term deposits and PIE term funds, and the gross rates can differ slightly. This tool lets you enter each rate, so you can compare the true after-tax outcome rather than assuming the rates match.

Who benefits from a PIE?

Those on a 30, 33 or 39 percent marginal rate benefit most from the 28 percent PIE cap. If your marginal rate is 17.5 percent or below, a PIE offers little or no tax advantage over an ordinary term deposit.

Wholesale Investor Eligibility Calculator NZ

What is a wholesale investor?

Under New Zealand's Financial Markets Conduct Act, a wholesale investor can access certain investments without the disclosure protections offered to retail investors, on the basis that they are wealthy or experienced enough to look after themselves.

What are the wealth tests?

One common route is the large or wealthy person test: net assets of at least 1 million dollars, or annual gross income of at least 200,000 dollars in each of the last two years. Other categories exist, including certification by a financial adviser, lawyer or accountant.

Does meeting the test mean I should invest?

No. Wholesale offers come with fewer protections and are often higher risk and less liquid. Eligibility is not advice. Get independent professional advice before accepting wholesale investor status or any wholesale offer.

Saving and investing questions, answered

What does a career break cost my investments?

Why is the cost so much larger than the contributions missed?

Does the timing of a break matter more than the length?

Does a longer break cost proportionally more?

Should I avoid taking a career break?

How much extra do I need to contribute to catch up?

Does this apply to KiwiSaver?

Is contributing a smaller amount better than stopping?

Should a child's investment be in their name or a parent's?

What PIR does a child have?

Does a child's investment affect Working for Families?

What happens to the money when they turn 18?

How does this differ from KiwiSaver for a child?

What is the minor beneficiary rule?

Is it better to start early with a small amount?

Do I need to file a tax return for my child?

Why does a projection need a range?

Why is the average outcome higher than the median?

Does volatility change the expected outcome?

What do the poor and good cases mean?

Should projections be in today's money?

How are contributions handled in the maths?

Can I use this with clients?

What does this model get wrong?

Where should I keep my emergency fund in New Zealand?

Why does a mortgage offset beat a savings account?

Should I put my emergency fund in a term deposit?

How much does leaving it in my transaction account cost?

Why is a PIE cash fund ahead of a bank savings account?

Does the offset advantage depend on my tax rate?

Should I use my credit card as an emergency fund instead?

Should any of an emergency fund be invested?

How much do fund fees cost over a lifetime?

Why is the cost more than the fees charged?

How much would switching to a cheaper fund be worth?

Does a small fee difference really matter?

Should I compare against a zero-fee fund?

Should I use a gross or a net return?

Does the stated fee capture everything?

Is the cheapest fund always the right choice?

How do I know if my funds overlap?

Is holding three funds more diversified than one?

What does it mean if a fund is 100% duplicated?

Does this compare individual shares?

How much United States exposure is too much?

Where do I find my fund's market allocation?

Should I just hold one global fund instead?

Do my weights have to add to 100 percent?

Should I convert a large sum all at once or spread it out?

Does spreading a conversion reduce the fee?

What does a fixed fee per conversion do to the comparison?

Is dollar cost averaging into a currency a good idea?

How is this different from dollar cost averaging into shares?

What average rate did spreading achieve?

How many instalments should I use if I decide to spread?

Can this calculator tell me what rates will do?

Does investing through a company save tax in New Zealand?

Is a company better than a PIE for investing?

Can my company just invest in a PIE?

How do imputation credits work on a dividend?

What does the shareholder actually receive?

Is the deferral worth anything?

What about the cost of running the company?

When does a company make sense for investments?

Is it better to invest personally or through a trust?

Why does a trust lose money on PIE investments?

Does retaining income in a trust help?

How much of my return is actually taxed?

How does the $10,000 trustee de minimis work?

Does the gap keep growing over time?

Should I set up a trust to save tax on investments?

What does this calculation leave out?

What is the chance of losing money in the share market?

Does investing get safer the longer I hold?

Which matters more, the return or the volatility?

Is twenty years long enough to be safe?

What model does this use?

How accurate is this?

Does this account for inflation?