True Cost of a Purchase Calculator
The price tag is what you pay today. The true cost is what that money would have grown to.
What it really costs you by 65
$402,506
$40,000 spent, which invested would have grown 10.1x. About $165,827 in today’s dollars.
- Price you pay$40,000
- Growth you give up$362,506
- Each $1 spent today costs$10.06by age 65
If invested insteadPrice you pay
Not a reason to never spend
Some things are worth it. The point is to know the real price, then decide. A $40,000 car versus a $25,000 car isn’t a $15,000 choice; it’s the gap times everything that money would have become.
Why “affordable” is the wrong question: read the article
Important — please read
This calculator is an educational tool. It shows a simple, fixed-rate projection: it assumes your money grows at the same rate every year with no interruptions, and it ignores taxes, fees, inflation, market volatility, sequence-of-returns risk, and changes to your contributions or circumstances. Real investment returns vary widely year to year and can be negative. Past performance does not predict future results.
The numbers shown are hypothetical illustrations, not a forecast, a promise, or a recommendation, and nothing here is investment, tax, legal, or financial advice or an offer or solicitation to buy or sell any security. Paycheck Paradox is not a registered investment adviser, broker-dealer, or tax advisor.
Before making any financial decision, talk to a qualified professional — a licensed financial advisor, CPA, or attorney — who can account for your full situation. You are solely responsible for your own decisions.
Provided “as is”, with no warranty of accuracy or fitness for any purpose. To the fullest extent permitted by law, Paycheck Paradox accepts no liability for any loss arising from use of, or reliance on, this tool.