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Gateway to an Early Retirement

Below is a calculator that works out the benefits of a margin loan, dividends and compounding returns. 

You will want to enter your own figures into the following sections: 

Starting Balance – How much you intend to start with

Monthly Investment – How much you intend to invest each month

Margin Interest Cost – The cost of interest in % for the margin loan. 

Age – The age you will be starting out.

*Over to the right, Desired Income – How much you want to be earning each year. This will effect the Total Income column below, making it green once the income would be reached.

Full information below the calculator on this page. 

Age: The age from starting, increasing year by year

Investment: The total amount of money added each year (including growth from the previous year)

Margin Loan: The amount of margin (loan) on your portfolio, which interest is calculated on.

Growth: The capital return on the shares held for the year. 

Dividend Income: The income from dividends for the year. *Does not include Franking calculations

Margin Cost: The cost of the loan (Margin Loan column) based on the Margin interest rate/cost.

Total Income: Dividend income less the Margin Cost. 

As the years go on, a small investment can build up and scale, creating a level of certainty for you long term. It helps to create a potential early retirement without being wealthy, without having a lot of money coming in each week. Yes, it does take time, however that time allows for a level of certainty and an incredible fallback should you ever need it.

Have a question about this calculator or want some help? Contact Us