Direct Indexing Tax Alpha Calculator
Free direct indexing tax alpha calculator estimates annual loss harvesting alpha and cumulative tax savings from direct indexing versus ETF buy and hold.
How It Works
Enter the inputs described in each field label for Direct Indexing Tax Alpha Calculator. Adjust the inputs above to see how changes affect the projection.
Direct indexing tax alpha estimates incremental after tax return from systematic loss harvesting in a separately managed account. Combine with Tax Harvest Planner and Wash Sale Alert on portfolios.tools for tax aware portfolio management. Numbers update instantly so you can pressure test assumptions quickly.
Combine with Tax Harvest Planner and Wash Sale Alert on portfolios.tools for tax aware portfolio management.
Bookmark the page for quick reruns without installing software.
Step by step
- Open Direct Indexing Tax Alpha Calculator and enter your current inputs.
- Review calculated outputs and summary tables.
- Adjust assumptions and compare scenarios side by side.
Worked example
Adjust one input at a time to see sensitivity.
Common mistakes
Confirm tickers, percentages, and dates before acting.
Running a single baseline scenario ignores tail risks.
The Formula
Harvestable Losses ≈ Portfolio × min(5%, Volatility × 0.3)
Tax Savings = Harvestable Losses × Tax Bracket
After Tax Boost = Tax Savings ÷ Portfolio
Model uses simplified harvest rate. Actual results depend on wash sale rules, tracking error budget, and market path.
Limitations and assumptions
Model uses simplified harvest rate. Actual results depend on wash sale rules, tracking error budget, and market path. Direct Indexing Tax Alpha Calculator does not replace personalized advice.
Key terms
- What does Direct Indexing Tax Alpha Calculator measure
- Direct indexing tax alpha estimates incremental after tax return from systematic loss harvesting in a separately managed account.
- How is the formula applied
- The formula block on this page shows every intermediate step so you can audit the math against textbook definitions.
- Model assumption
- Interpret results in context rather than as automatic buy, sell, or accept signals.
Compare alternatives
Combine with Tax Harvest Planner and Wash Sale Alert on portfolios.
FAQ
What does Direct Indexing Tax Alpha Calculator measure?
Direct indexing tax alpha estimates incremental after tax return from systematic loss harvesting in a separately managed account. This calculator runs entirely in your browser on portfolios.tools. The formulas and any bundled reference data are documented below.
How is the formula applied in Direct Indexing Tax Alpha Calculator?
Model uses simplified harvest rate. Actual results depend on wash sale rules, tracking error budget, and market path.
How should I interpret Direct Indexing Tax Alpha Calculator results?
Direct indexing tax alpha estimates incremental after tax return from systematic loss harvesting in a separately managed account.
What are common input mistakes with Direct Indexing Tax Alpha Calculator?
Stress test with conservative and optimistic inputs before acting. Document assumptions when sharing outputs with colleagues or clients.
What are the limitations of Direct Indexing Tax Alpha Calculator?
Model uses simplified harvest rate. Actual results depend on wash sale rules, tracking error budget, and market path.
Related Tools
Combine with Tax Harvest Planner and Wash Sale Alert on portfolios.tools for tax aware portfolio management.