Transparency
Methodology
How the calculators on Leverage Abroad work, what assumptions they make, and the limitations you should be aware of.
General principles
- All calculators use standard financial formulas (compound interest, amortization, etc.) — no proprietary black boxes.
- FX rates are approximate mid-market rates, manually overridable. They're not live API rates — they're presets that should be verified against your actual transfer provider.
- Every calculator saves your inputs to your browser's localStorage. No data is sent to any server unless you choose to create an account (future feature).
- Calculators that share data (like currency, income, or savings) auto-fill from a shared user profile stored in your browser.
Savings Rate
Savings rate = (Income − Expenses) / Income × 100. We use net (after-tax) income, not gross. The 8 expense categories are designed to capture diaspora-specific costs including family support ("black tax").
Remittance Audit
Total fees = (flat fee × number of transfers) + (principal × fee percentage / 100). Future value if invested uses the compound interest formula: FV = PMT × [((1 + r)^n − 1) / r], where r is the monthly return rate and n is the number of months.
Debt Payoff (Avalanche vs Snowball)
Month-by-month simulation: interest accrues first (balance × APR/12), then minimum payments are applied to all debts, then the extra payment is applied to the highest-APR debt (avalanche) or lowest-balance debt (snowball). The simulation runs until all debts reach zero or 600 months (cap).
Return Timeline
Binary search to find the month when projected savings (with compound growth + monthly contributions) exceeds the inflation-adjusted target nest egg. Investment growth uses monthly compounding. Inflation escalates the target annually. Relocation cost is optionally deducted at the target date.
FIRE Number
FIRE number = Annual expenses / Withdrawal rate. We calculate at 3%, 4%, and 5% withdrawal rates. Time-to-FIRE uses binary search with monthly compounding on current savings + contributions.
Stay or Go Assessment
8 dimensions scored 0-100, weighted by importance: Financial Readiness (25%), Relocation Budget (15%), Cost-of-Living Gap (10%), Income Plan (15%), Debt Status (10%), Housing Plan (10%), Family Readiness (10%), Psychological Timing (5%). Total score is the weighted average. Auto-feeds from other calculator results stored in localStorage.
Limitations & disclaimers
Not financial advice. These calculators provide estimates for informational purposes only. They do not constitute financial, legal, or tax advice. Always consult a qualified professional before making financial decisions.
FX rates are approximate. The preset exchange rates are updated periodically and may not reflect the rate you'll actually receive from your transfer provider. Always verify current rates.
Assumptions may not apply to you. Default values (like 7% investment return or 3% inflation) are based on historical averages. Your actual results may differ significantly.
No guarantee of accuracy. While every effort is made to ensure the calculations are correct, errors may exist. Use these tools as a starting point, not as the final word on your financial planning.