How much purchasing power will your money retain?
Simulate wealth building, compound returns, advance tax and inflation. What matters is not only the future amount, but what it will still buy.
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CAPITAL BUILDERLAB / 02
Nominal final value
€270,688
Purchasing power in today's money
€164,993
Purchasing-power loss from inflation
€105,695
Total contributions
€100,000
Estimated total German advance tax
€10,538
Lost tax compounding
€7,961
Capital growth
Nominal portfolio value compared with its equivalent in today’s euros.
Nominal value with advance taxPurchasing power in today's moneyNominal value without advance tax
Understanding purchasing power
A high final amount does not automatically mean high real wealth.
Assumed inflation2.0 % p. a.
Real model return after inflation4.9 % p. a.
Purchasing power retained61.0%
Nominal return and compounding share63.1%
The bar shows the share of nominal final wealth not funded by personal contributions.
Over 25 years, one euro retains about 61.0% of its purchasing power in the model. The nominal final amount is therefore €105,695 above its equivalent in today’s euros.
Understanding the tax effect
Advance tax and purchasing-power loss are separate effects.
Hypothetical final wealth without advance deductions€289,187
Portfolio gap versus no advance deductions€18,499
Portfolio gap from advance deductions6.4%
Effective tax rate in the model26.4%
Advance tax during the period€10,538
Simulated advance payments total €10,538. The additional lost compounding is €7,961, or about 75.5% of the tax paid early.
Annual values
Transparent calculations instead of a black box.
| Year | Contributions | Annual return | German advance tax (Vorabpauschale) | Tax | Nominal portfolio value | Purchasing power today |
|---|---|---|---|---|---|---|
| Year 1 | €3,600 | €814 | €224.00 | €41.36 | €14,373 | €14,091 |
| Year 2 | €3,600 | €1,120 | €321.95 | €59.44 | €19,033 | €18,294 |
| Year 3 | €3,600 | €1,446 | €426.35 | €78.71 | €24,001 | €22,617 |
| Year 4 | €3,600 | €1,794 | €537.63 | €99.26 | €29,296 | €27,065 |
| Year 5 | €3,600 | €2,165 | €656.23 | €121.16 | €34,940 | €31,646 |
| Year 6 | €3,600 | €2,560 | €782.65 | €144.50 | €40,955 | €36,367 |
| Year 7 | €3,600 | €2,981 | €917.40 | €169.37 | €47,367 | €41,236 |
| Year 8 | €3,600 | €3,430 | €1,061.01 | €195.89 | €54,201 | €46,260 |
| Year 9 | €3,600 | €3,908 | €1,214.09 | €224.15 | €61,485 | €51,448 |
| Year 10 | €3,600 | €4,418 | €1,377.25 | €254.28 | €69,248 | €56,808 |
| Year 11 | €3,600 | €4,961 | €1,551.16 | €286.38 | €77,523 | €62,349 |
| Year 12 | €3,600 | €5,541 | €1,736.52 | €320.61 | €86,344 | €68,081 |
| Year 13 | €3,600 | €6,158 | €1,934.09 | €357.08 | €95,745 | €74,014 |
| Year 14 | €3,600 | €6,816 | €2,144.68 | €395.96 | €105,765 | €80,157 |
| Year 15 | €3,600 | €7,518 | €2,369.13 | €437.40 | €116,445 | €86,520 |
| Year 16 | €3,600 | €8,265 | €2,608.37 | €481.57 | €127,829 | €93,116 |
| Year 17 | €3,600 | €9,062 | €2,863.36 | €528.65 | €139,962 | €99,956 |
| Year 18 | €3,600 | €9,911 | €3,135.15 | €578.83 | €152,895 | €107,051 |
| Year 19 | €3,600 | €10,817 | €3,424.84 | €632.31 | €166,679 | €114,414 |
| Year 20 | €3,600 | €11,782 | €3,733.61 | €689.32 | €181,371 | €122,058 |
| Year 21 | €3,600 | €12,810 | €4,062.72 | €750.08 | €197,031 | €129,997 |
| Year 22 | €3,600 | €13,906 | €4,413.51 | €814.84 | €213,723 | €138,244 |
| Year 23 | €3,600 | €15,075 | €4,787.39 | €883.87 | €231,514 | €146,816 |
| Year 24 | €3,600 | €16,320 | €5,185.91 | €957.45 | €250,476 | €155,727 |
| Year 25 | €3,600 | €17,647 | €5,610.67 | €1,035.87 | €270,688 | €164,993 |