Human Capital Calculator
The present value of your future earnings — your largest, bond-like asset, and what it implies for portfolio risk.
Formula
Young investors are massively overweight a 'bond' (steady future salary), which is why they can — and should — hold mostly equities: their human capital is the ballast. As human capital depletes with age, financial capital should de-risk to replace it. This reframes the whole glide-path debate.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need human capital calculator results fast? Analysts, founders, traders and finance professionals use the Human Capital Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Human Capital Calculator
The present value of your future earnings — your largest, bond-like asset, and what it implies for portfolio risk. Young investors are massively overweight a 'bond' (steady future salary), which is why they can — and should — hold mostly equities: their human capital is the ballast. As human capital depletes with age, financial capital should de-risk to replace it. This reframes the whole glide-path debate. The governing relationship is HC = Σ income_t / (1 + discount)^t. The Human Capital Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Human Capital Calculator
- 1Enter Annual income (currency), Income growth (%/yr), Years until retirement, Discount rate (%), Savings rate (%) into the Human Capital Calculator.
- 2The result is computed automatically using HC = Σ income_t / (1 + discount)^t — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Human Capital Calculator?
- ✓Computes human capital calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Human Capital Calculator?+
Human Capital Calculator uses HC = Σ income_t / (1 + discount)^t. Young investors are massively overweight a 'bond' (steady future salary), which is why they can — and should — hold mostly equities: their human capital is the ballast. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Human Capital Calculator need?+
Enter Annual income (currency), Income growth (%/yr), Years until retirement, Discount rate (%), Savings rate (%) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Human Capital Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Human Capital Calculator?+
As human capital depletes with age, financial capital should de-risk to replace it. This reframes the whole glide-path debate.
What is the Human Capital Calculator based on?+
The method follows authoritative sources: Ibbotson, Milevsky et al. — Lifetime Financial Advice; human capital. The formula and references are shown on the page so you can verify and cite the result.
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