The Withdrawal Calculator is a simple yet essential tool for managing your finances. It helps you understand the net amount you'll receive after a withdrawal, considering any associated fees. This is particularly useful when making large withdrawals from savings accounts, investment portfolios, or even when dealing with specific digital platforms that might have transaction charges.
How it Works
The calculator performs a straightforward calculation:
Withdrawal Fee Calculation: It first determines the fee amount by multiplying the withdrawal amount by the withdrawal fee percentage. The formula is:
Withdrawal Fee = Withdrawal Amount * (Withdrawal Fee Percentage / 100)
Net Withdrawal Amount: Next, it subtracts the calculated withdrawal fee from the amount you intend to withdraw to find out the actual amount that will be credited to you. The formula is:
Net Withdrawal Amount = Withdrawal Amount - Withdrawal Fee
Remaining Balance: Finally, it subtracts the original withdrawal amount (before fees) from your current account balance to show how much will be left. The formula is:
Remaining Balance = Current Account Balance - Withdrawal Amount
Key Inputs Explained
Current Account Balance: This is the total amount of funds currently available in your account before you initiate the withdrawal.
Amount to Withdraw: This is the gross amount you wish to take out of your account. This is the amount before any fees are deducted.
Withdrawal Fee (%): This is the percentage charged by the institution or platform for processing your withdrawal. A 1.5% fee, for instance, means you'll pay 1.5 units of currency for every 100 units you withdraw.
Why Use a Withdrawal Calculator?
Using this calculator offers several benefits:
Transparency: It provides a clear understanding of how much of your money will be deducted as fees.
Informed Decisions: Knowing the net amount helps you make better decisions about whether a withdrawal is feasible and if the fee is justifiable.
Financial Planning: It aids in accurate financial planning by showing the exact impact of a withdrawal on your account balance.
Avoiding Surprises: It helps prevent unexpected shortfalls in your account balance due to unconsidered withdrawal charges.
Example Scenario
Let's say you have a Current Account Balance of $10,000.00. You decide to withdraw $2,000.00, and there's a Withdrawal Fee of 2%.
The withdrawal fee would be: $2,000.00 * (2 / 100) = $40.00
The net amount you would receive is: $2,000.00 - $40.00 = $1,960.00
Your remaining account balance would be: $10,000.00 - $2,000.00 = $8,000.00
The calculator simplifies these calculations, giving you immediate insights into your transaction.
function calculateWithdrawal() {
var currentBalance = parseFloat(document.getElementById("currentBalance").value);
var withdrawalAmount = parseFloat(document.getElementById("withdrawalAmount").value);
var withdrawalFeePercentage = parseFloat(document.getElementById("withdrawalFeePercentage").value);
var resultDiv = document.getElementById("result");
if (isNaN(currentBalance) || isNaN(withdrawalAmount) || isNaN(withdrawalFeePercentage)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (currentBalance < 0 || withdrawalAmount < 0 || withdrawalFeePercentage currentBalance) {
resultDiv.innerHTML = "Withdrawal amount cannot exceed current balance.";
return;
}
var withdrawalFee = withdrawalAmount * (withdrawalFeePercentage / 100);
var netWithdrawalAmount = withdrawalAmount – withdrawalFee;
var remainingBalance = currentBalance – withdrawalAmount;
// Display results with currency formatting where appropriate
// Assuming currency is USD for display purposes, adjust if needed.
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
});
resultDiv.innerHTML = "Net Withdrawal Amount: " + formatter.format(netWithdrawalAmount) + "" +
"Withdrawal Fee: " + formatter.format(withdrawalFee) + "" +
"Remaining Balance: " + formatter.format(remainingBalance) + "";
}