Tax-Loss Harvesting Savings Estimator
Estimate how much automated tax-loss harvesting could save you, including the $3,000/year ordinary-income offset limit and loss carryforward.
Total estimated tax saved over 10 years
$4,800
Loss carryforward remaining at the end
$0
Unused losses carry forward indefinitely to offset future gains or income — they don't expire.
This calculator is informational only, not personalized tax or financial advice. It models the real IRS rule that harvested losses offset realized capital gains first, then up to $3,000/year of ordinary income, with the rest carried forward — but it assumes a constant harvest rate and ignores wash-sale timing details. Talk to a tax professional before acting on this.
Frequently Asked Questions
How much can tax-loss harvesting actually save me?
The savings depend on your tax bracket, how much unrealized loss is available to harvest, and how the $3,000/year ordinary-income offset limit applies. This estimator models those variables using your inputs so you can see a realistic dollar range rather than a marketing claim.
What is the $3,000 offset limit?
The IRS caps the amount of net capital losses you can deduct against ordinary income at $3,000 per year ($1,500 if married filing separately). Losses beyond that carry forward to future tax years indefinitely.
What is the wash-sale rule, and does it affect this estimate?
The wash-sale rule disallows a tax loss if you buy a "substantially identical" security within 30 days before or after the sale. Automated tax-loss harvesting is designed to swap into a similar-but-not-identical fund to stay compliant — this estimator assumes harvesting is executed correctly and does not model wash-sale violations.
Is tax-loss harvesting worth it for a small account?
The dollar benefit scales with your balance and the amount of market volatility available to harvest against, so it tends to matter less on very small accounts. Run your own numbers here rather than assuming a flat percentage benefit.