Tax-Efficient Fund Placement Calculator

Optimize which funds go in taxable vs tax-advantaged accounts to minimize tax drag.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Taxable account (%)

Tax-advantaged (%)

Total portfolio ($)

Marginal tax rate (%)

Years invested

Tab to move between fields

Results

Stocks in taxable ($)

$40,000.00

≈ 4 years of state college

Bonds in tax-advantaged ($)$60,000.00

Annual tax savings ($)$0.00

Total tax savings ($)$0.00

Tax efficiency score (0-100)0

Inefficient annual tax ($)$396.00

Tax Adv Amount$60,000.00

How to Use This Calculator

Enter the percentage of your portfolio in taxable accounts versus tax-advantaged accounts (401k, IRA).
Input your total portfolio value and marginal tax rate.
Set the number of years you plan to invest.
Review Annual Tax Savings and Total Tax Savings to see the benefit of placing bonds in tax-advantaged accounts and stocks in taxable accounts.
Check Tax Efficiency Score (0–100) — scores above 70 indicate a well-optimized placement strategy.

How the result changes with Taxable account (%)

Taxable account (%)	Stocks in taxable ($)
10	$10,000.00
35	$35,000.00
65	$60,000.00
90	$60,000.00

What each input means

Taxable account (%): Percentage of portfolio in taxable brokerage account.
Tax-advantaged (%): Percentage in 401k, IRA, Roth, etc.
Total portfolio ($): Total investment portfolio value.
Marginal tax rate (%): Your marginal income tax bracket.
Years invested: Investment time horizon.

What each result means

Stocks in taxable ($): Optimal stock allocation in taxable account.
Bonds in tax-advantaged ($): Optimal bond allocation in tax-advantaged account.
Annual tax savings ($): Yearly tax savings from efficient placement.
Total tax savings ($): Compound savings over investment period.
Tax efficiency score (0-100): Higher = more tax-efficient placement.
Inefficient annual tax ($): Tax cost if bonds placed in taxable.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Taxable account (%) = 40, Tax-advantaged (%) = 60, Total portfolio ($) = 100000, Marginal tax rate (%) = 22 = 5 input(s) provided
Calculate Stocks in taxable
Stocks in taxable = min(taxableAmount, totalPortfolio * 0.60)
40000 = $40,000
Calculate Bonds in tax-advantaged
Bonds in tax-advantaged = totalPortfolio - efficientTaxable
60000 = $60,000
Calculate Annual tax savings
Annual tax savings
0 = $0