Tax loss harvesting sells losing investments to offset taxable gains, reducing your annual tax bill.
What this calculator does
Harvesting
0,000 in losses with a 24% rate saves $2,400 in taxes that year.
When to use this calculator
Use this calculator before making any financial commitment that depends on this type of calculation. Running the numbers in advance lets you evaluate options without the pressure of a live negotiation or decision deadline.
Common mistakes
Many financial calculation errors stem from omitting ancillary costs: fees, taxes, insurance, or maintenance. The headline figure (interest rate, monthly payment) is rarely the complete cost of a financial product.
Real-world scenarios
A small business owner compares two financing options for new equipment: a 5-year bank loan at 5.2% versus a leasing arrangement with a monthly fee. The calculator translates both into a total cost figure, making the comparison straightforward.
Frequently asked questions
What is tax loss harvesting?
Selling investments at a loss to offset capital gains and reduce taxes, then reinvesting in similar assets.