Capital-Forming Benefits – Mega Calculator
Calculate in seconds what your VL can become – including yield, fee effects, and a visual progression.
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Explanation & FAQ
Capital-forming benefits (VL) are additional payments from an employer that – depending on the contract – flow into a savings plan. Many employers pay a fixed amount per month, often up to $40 (sometimes more). You can often top up VL with a personal contribution if you want to reach a specific savings amount. Crucially: VL is not a "special account," but a deposit into a product (e.g., fund/ETF savings plan, bank savings plan, or building society savings). This calculator shows you how regular contributions develop over time – including the compound interest effect, fee deductions, and optional inflation considerations.
How the calculator works: A monthly growth rate is derived from your assumed yield p.a. Annual costs (e.g., TER, management, or product fees) are subtracted from the yield in a simplified manner to obtain a net yield. Then, month by month, the portfolio value is simulated depending on whether the payment occurs at the beginning or end of the month. In the end, you receive the final value, the sum of your contributions (employer + personal + one-time), and the earnings (difference between final value and contributions). If you activate inflation, the final value also shows a purchasing power-adjusted approximation: this is particularly helpful for setting realistic expectations for the future.
Important: In the real world, taxes, government subsidies, account fees, initial sales charges, or market fluctuations can change the results. Use the calculator as a decision-making aid to compare scenarios: What term yields how much? How strongly do fees weigh down the result? What happens if you add a $10 personal contribution? The calculator is designed for exactly these "what-if" checks.
What yield should I enter?
Use a plausible, long-term expected value. For funds/ETFs, average values between conservative (e.g., 2–4%) and dynamic (e.g., 6–8%) are often used. For bank savings, it is usually significantly less. It's best to compare several scenarios.
What does "Costs p.a." mean?
These are ongoing product costs (e.g., TER for ETFs/funds) or management fees. Small differences have a strong impact over many years. Test different values – you will immediately see how the final value and earnings change.
Why payment at the beginning or end of the month?
With payment at the beginning of the month, your money works slightly longer. At the end of the month is more conservative. Choose what is closer to your contract – or use both options to see the range.
Does the calculator consider the employee savings bonus?
No, not automatically, because it depends on income, the form of the savings plan, and specific conditions. However, you can roughly simulate the bonus as a "one-time payment" or as an additional personal contribution to get a feel for the scale.
Is inflation really important?
For longer terms, yes. Inflation means that $1,000 in 7 years will likely have less purchasing power. The purchasing-power-adjusted value helps to compare realistically – especially with low yields.
Can I share or save the result?
With "Copy Result," you can copy the most important figures to your clipboard and paste them into notes, emails, or messages. For a PDF output, an additional extension would be required.
Is there a "best" VL system?
It depends on your goal, risk tolerance, and contract. The calculator helps you compare products based on final value and fee impact – but the decision depends on your individual framework.
Capital-Forming Benefits (Vermögenswirksame Leistungen)
Capital-forming benefits (VL, German: Vermögenswirksame Leistungen) are employer top-up payments that must be invested into a qualifying savings product. They are separate from your salary and defined by your employment contract or collective agreement (Tarifvertrag). Here is what matters:
Employer Maximum
The legal maximum employer VL is 40 €/month for fund/ETF savings plans. Many employers pay less (15–40 €). Check your contract or HR.
Your Personal Top-Up
You can add your own contributions on top of the employer share, up to the product's maximum. ETF plans often allow up to 100–200 €/month total.
Lock-Up Period
Fund/ETF savings plans require a 7-year term: 6 years of saving + 1 year "rest year." Building society (Bauspar) accounts have different terms. Early access is not possible without penalty.
State Savings Bonus
Arbeitnehmer-Sparzulage: 20% bonus on up to 400 €/year in equity fund VL if income < 40,000 € (single) or 80,000 € (married). Max bonus = 80 €/year. Claimed via tax return.
Which VL Product Makes Sense When?
| Product Type | Typical Return | Lock-Up | State Bonus | Best For |
|---|---|---|---|---|
| ETF / Fund Savings Plan | 4–8% p.a. (market) | 7 years | Yes (equity bonus) | Long-term wealth building; best risk/return with time horizon |
| Bank Savings Plan (VL) | 2–4% p.a. (fixed) | 6 years | No | Capital preservation; suitable if you dislike equity risk |
| Building Society (Bauspar) | 0.5–2% + bonus | 7–10 years | Yes (Wohnungsbau-Prämie) | Earmarked for future property purchase or renovation |
| Company Pension (bAV) | 1–5% (employer-specific) | Retirement | Via tax savings | Tax optimization; not accessible until age 62+ |
For most employees with a 7+ year horizon and no near-term home purchase plan, a broad ETF savings plan (e.g., MSCI World) maximizes the long-term return. The state bonus also applies exclusively to equity products, adding a free 20% return layer on the first 400 €/year.
How Fees Destroy Returns Over Time
The calculator's "Fee Check" is one of its most valuable features. A 1% difference in annual costs (TER) has a dramatic cumulative effect:
| Annual Fee (TER) | Gross Yield | Net Yield | Value after 7y (40€/mo) | Loss vs. Low-Cost |
|---|---|---|---|---|
| 0.20% (ETF) | 6.0% | 5.80% | ≈ 4,020 € | Reference |
| 0.50% (ETF) | 6.0% | 5.50% | ≈ 3,960 € | −60 € |
| 1.20% (Active Fund) | 6.0% | 4.80% | ≈ 3,800 € | −220 € |
| 2.00% (Insurance-wrapped) | 6.0% | 4.00% | ≈ 3,600 € | −420 € |
At 40 €/month over 7 years, the difference between a 0.2% and 2.0% fee product is over 400 € — that is more than two months of employer contributions lost entirely to fees. Use the fee field in the calculator to test your specific product before signing up.
Frequently Asked Questions
What does "Payment Timing" (beginning vs. end of month) change?
If you select "Beginning of Month," each contribution earns one extra month of compound interest compared to "End of Month." Over 7 years with monthly payments, this difference adds up to roughly one additional month of return. The official calculation standard varies by product provider. "Beginning of Month" is the more favorable assumption and is a reasonable default for planning purposes.
Should I include inflation in my calculation?
For long-term planning, yes. Activating inflation (default 2%) shows you the purchasing-power-adjusted final value — what your money will actually be worth in today's terms. This is particularly useful for VL with 7-year lock-ups. A nominal result of 4,000 € might only represent ~3,450 € in today's purchasing power at 2% annual inflation over 7 years. The real-value figure helps set honest expectations.
My employer offers 20 € VL. Can I top up to 40 €?
Yes. Enter 20 in the "VL from Employer" field and the difference (20 €) in "Personal Contribution." The calculator treats both as monthly contributions and applies the same compound interest. Personal contributions to equity fund VL up to 400 €/year are eligible for the 20% state savings bonus if your income is below the threshold — so even topping up yourself is financially attractive.
Does the calculator include taxes?
No. The calculator shows gross returns before capital gains tax (Abgeltungssteuer, 25% + Soli + church tax in Germany). In practice, the annual VL amounts are small enough that the saver's allowance (Sparerpauschbetrag: 1,000 €/year single, 2,000 € married) often covers the gains entirely, making taxes a non-issue for most VL plans. For large personal top-ups or multi-year compound growth scenarios, consult a tax advisor for accurate net projections.
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