The Investment Calculator creates a number of great reports that provide a lot of detail about an investment and your overall situation. This area provides help with reading and understanding what these reports mean.
The three different report sections
There are different sections available in the reports page depending on the calculator you are using. For the Investment Calculator you will see the following reporting sections;
- Entire situation
- Individual Investments
Your entire situation will give the full overview of all your investments combined with your salary, bonuses, living expenses etc. It shows you everything you have put into the calculator. Only totals for each investment is shown.
The individual investments section is for viewing each investment in-depth. You can see how all the totals for the entire situation reports are calculated. Click on a heading to be taken to that report then simply choose the investment you wouldlike to see in the drop down list under which ‘investment would you like to see?’
Entire Situation Reports
Cash from salary and investments
These are the ongoing cash in and ongoing cash out income and expenses relating to your investments and job.
The net cash flow from salary & Investments figure here will give you the best estimate of your regular cash left over each year from all your investments and salary.
Note that the net cash flow from salary and investments does not include lifestyle expenses and other one-time expenses in order to give a full idea of how much you have left to spend on your lifestyle.
The Total Cash Surplus (+) or Cash Deficit (-) includes the lifestyle expenses and one-time expenses as well as 2 more amounts:
- Net Loan Drawdowns (+) / Repayments (-)
- Any loans you have created or repaid (includes principal payments on your home or investments
- Sale of Assets (+) / Purchases of Assets (-)
- Money coming in from selling an investment or money being used to purchase an asset. These 2 items come from the Cash Flow From Buying, Selling, & Loans Section.
The Where does the money go? Section shows where the Total Cash Surplus / Deficit will be paid to or taken from. If the Total Cash Surplus / Deficit is positive it represents a cash surplus and will be paid to one of the accounts listed. If it is negative it is a deficit and must be taken from one of the accounts.
Cash flow from Buying, Selling & Loans
These items relate to money coming in and going out from any purchases, sales, or principal repayments. A full breakdown is below
Example: you purchase a $500,000 investment property using $400,000 borrowed from the bank and $100,000 of your own money.
You receive the $400,000 from the bank (+).
You pay out $500,000 for the investment property (-)
The -$100,000 shortfall will appear as the Net Cash Flow From Buying, Selling & Loans.
Where does this figure go?
The net cash flow from financing feeds is combined with the cash flow from salary and investments to produce the total cash flow figure.
If the total cash flow is positive and you have no line of credit drawn down it is paid to either your savings account or home loan depending on what which you have chosen in the personal details section. If you have a line of credit drawn down the cash will first be used to pay down the line of credit. If the total cash flow is negative the amount will instead be taken from one of the above accounts.
Using the example above:
You have $80,000 left over from your salary and expenses and $20,000 in the bank from last year. The $100,000 shortfall will be covered by the $80,000 left over and $20,000 will be taken from your bank account.
Assets, Loans, Net Worth
Year 0 shows today or now. Year 1 shows balances at the end of year 1. For a break-down of individual investment loan repayments or the equity in individual loans please see the Individual investments reports or Cash flow from financing report.
To see a full breakdown of how the Net Taxable Profit or Loss is calculated for each investment see the Profit / Loss page in the Individual Investments section.
For all the assumptions relating to tax click here.
Individual Investments Reports
Profit / Loss
Total Taxable Expenses and Total Cash Expenses will differ by the amount of the non-cash elements.
Borrowing Costs and Depreciation are tax deductible but are not actual ongoing cash payments. Borrowing costs are paid at the outset of the loan.
If you want to see a graph of cash or tax profit and loss see the Investment Summary Report.
How much your investment will cost you
Tax savings from losses in previous years are not included in this page.
If the out of pocket profit / cost is positive the ‘how the costs will be paid’ pie graph will be somewhat irrelevant.
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