Tax Alpha Leak Calculator

How much is your taxable book leaking every year?

If tax-loss harvesting is a once-a-year, December project, most of the value is left on the table. See the estimated annual client value going unharvested, then decide if it is worth 20 minutes before year-end.

Taxable assets under management Enter the portion of your book held in taxable accounts (exclude IRAs, 401(k)s).

$5M$250M$500M$1B$2B

Clients in a high-tax state (e.g., CA, NY, NJ) Applies a higher illustrative harvesting benefit.

Estimated annual value left unharvested

$552,000 / yr

At an average 69 bps of annual tax benefit on your taxable book.

Illustrative estimate, not a forecast

Conservative

$320,000

40 bps

Average

$552,000

69 bps

High end

$944,000

118 bps

Illustrative cumulative value over 10 years (average case, simple sum)

$5.52M

See it run on your book.

Wallace harvests daily, with household wash-sale prevention, direct indexing, and planning on one platform, connected to your custodian. You approve every trade. Book a 20-minute demo.

Thanks. We will reach out within one business day to schedule. You can also go straight to wallacefinance.io/for-advisors.

Prefer to explore first? wallacefinance.io/for-advisors

Disclosures. Wallace Finance Co. (“Wallace”) is an SEC-registered investment adviser and provides software for wealth managers and investment advisors. Wallace takes no custody, no discretion, and is not a sub-adviser; the advisor approves every trade and remains adviser of record. This calculator is for illustrative and educational purposes only and is not a forecast, a guarantee, or investment, tax, or legal advice. Estimated tax alpha reflects typical published ranges and is illustrative, not a forecast. Tax-loss harvesting benefits depend on market dynamics, realized gains, cost-basis freshness, and advisor action; actual results vary by client and are not guaranteed. Ranges reflect published third-party research: Morningstar measured an average 69 bps per year of tax benefit over a direct-indexing strategy’s first five years (10th to 90th percentile roughly 40 to 118 bps); Vanguard’s 2015 to 2024 backtest put tax-loss-harvesting alpha near 0.85% federally and roughly 1.2% in high-tax states. All investing involves risk, including possible loss of principal; past performance does not guarantee future results.