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Calcimator

Windfall Allocation Calculator

Optimally split an inheritance, bonus, or settlement across taxes, debt, savings, retirement, and investments.

Inputs

%

Results

To investments ($)

$0.00

Tax reserve ($)$12,000.00
To emergency fund ($)$10,000.00
To debt payoff ($)$20,000.00
To retirement ($)$8,000.00
To enjoyment ($)$0.00
Invested In10Years0
How to Use This Calculator
  1. Enter the total windfall amount (inheritance, bonus, lawsuit settlement, etc.).
  2. Enter your total outstanding debt and emergency fund gap.
  3. Set your expected tax rate on the windfall if it is taxable income.
  4. Select whether you are behind on retirement savings.
  5. Review the recommended allocation: taxes, emergency fund, debt payoff, retirement, investments, and 10% for enjoyment.

What each input means

Windfall amount ($)
Total windfall received.
Total outstanding debt ($)
All outstanding debt balances.
Emergency fund gap ($)
Amount needed to reach 6-month emergency fund.
Expected tax rate (%)
Tax rate on the windfall income.
Retirement savings status
Whether you are behind on retirement savings goals.

What each result means

Tax reserve ($)
Set aside for taxes on windfall.
To emergency fund ($)
Fill emergency fund gap.
To debt payoff ($)
Pay off outstanding debts.
To retirement ($)
Max out retirement contributions.
To investments ($)
Invest for long-term growth.
To enjoyment ($)
10% guilt-free spending.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Windfall amount ($) = 50000, Total outstanding debt ($) = 20000, Emergency fund gap ($) = 10000, Expected tax rate (%) = 24 = 5 input(s) provided
  2. Calculate To investments
    0 = $0
  3. Calculate Tax reserve
    Tax reserve
    12000 = $12,000
  4. Calculate To emergency fund
    To emergency fund = min(remaining, emergencyFundGap)
    10000 = $10,000

Engine last updated . Checked against 1 independently-derived test — how we verify calculators.

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