How the Calculator Works

Transparent methodology, documented assumptions and a deterministic calculation engine.

1

You enter your details

Age, salary, super balance, contributions, fees and future expectations. We validate your inputs and flag anything unusual.

2

The engine calculates your projection

A deterministic calculation engine runs month-by-month from your current age to retirement, applying contributions, taxes, returns, fees and life events.

3

You see your results

Your projected balance, retirement income, readiness indicator and year-by-year breakdown — all transparent and auditable.

4

You test scenarios

Change contributions, retirement age, fees or career plans and instantly see the impact recalculated by the same engine.

Calculation Methodology

Engine Version: 1.1.0

Contribution Frequency: Monthly. Employer and personal contributions are divided by 12 and applied each month.

Contribution Tax: Concessional contributions (employer SG, salary sacrifice, personal deductible) are taxed at 15% upon entry to super.

Investment Returns: Annual return rate is converted to a monthly rate using compound formula: monthly = (1 + annual)^(1/12) - 1. Investment earnings are tax-free for complying super funds.

Fees: Percentage-based investment fees are calculated on the current balance monthly. Fixed administration fees are divided by 12. Insurance premiums are deducted monthly.

Salary Growth: Salary is increased once per year by the specified growth rate.

Inflation: The inflation-adjusted value divides the nominal balance by (1 + inflation%)^years to express the result in today's purchasing power.

Retirement Income: Estimated as 4% of the projected balance per year (aligned with common drawdown guidance).

Career Breaks: During break periods, salary (and therefore employer contributions) are reduced by the specified percentage. Fees and investment returns continue to apply to the existing balance.

Default Assumptions

Superannuation Guarantee Rate12%
Concessional Cap$31,500/yr
Non-Concessional Cap$120,000/yr
Contribution Tax Rate15%
Default Investment Return6.7%/yr
Default Investment Fee0.7%/yr
Default Admin Fee$100/yr
Default Insurance Premium$100/yr
Default Inflation2.5%/yr
Default Salary Growth3.5%/yr
Div 293 Tax Rate30%
Low Rate Cap$50,000
Drawdown Rate4%/yr
Comfortable Retirement (Single)$595,000

Known Limitations

  • •Uses constant annual rates — does not model year-by-year market volatility.
  • •Simplified tax calculations — does not model Division 293 tax, tax offsets or individual tax circumstances.
  • •Government co-contributions are not modelled in this version.
  • •Age Pension entitlements are not estimated.
  • •Couple projections are simplified and do not model complex shared financial arrangements.
  • •Transfer balance cap is not modelled in the drawdown estimate.