Superannuation (often called "super") is Australia's retirement savings system. It's designed to help individuals save for their retirement by requiring employers to contribute a percentage of an employee's salary into a super fund. The money in your super fund is invested, and over time, it can grow significantly due to investment returns and ongoing contributions.
This calculator helps you estimate your potential superannuation balance in the future based on several key factors:
Current Super Balance: The amount you already have in your super fund.
Annual Contributions: The total amount you expect to contribute each year. This includes employer contributions (Superannuation Guarantee) and any voluntary contributions you might make.
Assumed Annual Growth Rate: This is the average annual return you expect your investments to generate over the long term. It's crucial to use a realistic and conservative rate, as investment markets fluctuate. Historically, diversified growth funds have returned around 7-10% per annum over very long periods, but past performance is not a reliable indicator of future performance.
Annual Contribution Increase Rate: Many people increase their contributions over time as their salary grows. This input accounts for potential annual percentage increases in your contributions.
Number of Years to Invest: The period for which you want to project your superannuation balance.
How the Calculation Works
This calculator uses a compound interest formula, iteratively calculating the balance year by year. For each year, it considers:
The starting balance from the previous year.
The annual contributions made during the current year, considering potential increases.
The growth applied to the sum of the starting balance and contributions, based on the assumed annual growth rate.
The core of the calculation involves applying the growth rate to the balance and adding new contributions. A simplified iterative formula looks like this:
The calculator performs this calculation for the specified number of investment years to project your final superannuation balance.
Disclaimer: This calculator provides an estimate only and should not be considered financial advice. Investment returns are not guaranteed, and actual results may vary significantly. Consult with a qualified financial advisor for personalised advice.
function calculateSuperannuation() {
var currentBalance = parseFloat(document.getElementById("currentBalance").value);
var annualContributions = parseFloat(document.getElementById("annualContributions").value);
var annualGrowthRate = parseFloat(document.getElementById("annualGrowthRate").value) / 100; // Convert percentage to decimal
var contributionIncreaseRate = parseFloat(document.getElementById("contributionIncreaseRate").value) / 100; // Convert percentage to decimal
var investmentYears = parseInt(document.getElementById("investmentYears").value);
var resultElement = document.getElementById("superannuationResult");
if (isNaN(currentBalance) || isNaN(annualContributions) || isNaN(annualGrowthRate) || isNaN(contributionIncreaseRate) || isNaN(investmentYears) ||
currentBalance < 0 || annualContributions < 0 || annualGrowthRate < 0 || contributionIncreaseRate < 0 || investmentYears <= 0) {
resultElement.textContent = "Invalid input. Please enter valid positive numbers.";
return;
}
var projectedBalance = currentBalance;
var currentContributions = annualContributions;
for (var i = 0; i < investmentYears; i++) {
// Calculate growth on existing balance + new contributions
projectedBalance = (projectedBalance + currentContributions) * (1 + annualGrowthRate);
// Increase contributions for the next year
currentContributions = currentContributions * (1 + contributionIncreaseRate);
}
// Format the result as currency
resultElement.textContent = "$" + projectedBalance.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}