Savings and inflation
Profit rate comparison calculator
Compare two profit rates after tax over the same years.
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- The second deposit leaves you with more after tax.
Difference after tax
PKR 29,707.07
- First deposit after tax
- PKR 1,330,546.84
- Second deposit after tax
- PKR 1,360,253.91
- First deposit: profit after tax
- PKR 330,546.84
- Second deposit: profit after tax
- PKR 360,253.91
How it is calculated
For each deposit: value = amount x (1 + r / m)^(m x y), with r the yearly rate, m the times a year the profit is added back and y the years.
Profit = value - amount. Tax = profit x the tax rate. Value after tax = amount + profit - tax.
The difference is the gap between the two values after tax. Each figure is rounded to the paisa once.
Assumptions
- The first deposit earns 11% a year and the second 12.5% a year.
- Tax of 15% is taken from the profit once, at the end. In real life it may be taken each time profit is credited.
- Each rate stays the same for the whole time. Real rates change.
- Nothing is added or taken out, and no fees or charges apply.
Results are worked out from the figures you enter and are only estimates. They are not advice.
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