Glossary
The terms used across our calculators, defined in a sentence or two, each linked to the calculator that uses it.
- 529 plan
- A tax-advantaged account for education savings; earnings are tax-free when spent on qualified expenses. 529 College Savings Calculator
- Amortization
- Paying off a loan through regular payments that cover interest first and principal over time. Mortgage Calculator
- APR
- Annual percentage rate: the yearly cost of a loan including most fees, which lenders must disclose. Personal Loan Calculator
- APY
- Annual percentage yield: what a deposit really earns in a year once compounding is counted. CD Calculator
- Avalanche and snowball
- Two ways to pay off debts: highest rate first (saves the most interest) or smallest balance first (quick wins). Debt Payoff Calculator
- Break-even point
- The month a refinance’s savings repay its closing costs. Mortgage Refinance Calculator
- CAGR
- Compound annual growth rate: the steady yearly rate that turns a starting value into an ending value. CAGR Calculator
- DTI
- Debt-to-income ratio: monthly debt payments divided by gross monthly income. Lenders use it to size a mortgage. Home Affordability Calculator
- Effective tax rate
- Your total tax divided by your income; always lower than your top bracket. Federal Income Tax Calculator 2026
- Employer match
- Money your employer adds to your 401(k) when you contribute, often 50% of your contributions up to 6% of pay. 401(k) Calculator
- FICA
- Social Security and Medicare taxes withheld from your paycheck. Paycheck Calculator
- FIRE
- Financial independence, retire early: investing enough that withdrawals cover your spending for life. FIRE Calculator
- Full retirement age
- The age at which you receive your full Social Security benefit: 67 for anyone born in 1960 or later. Social Security Claiming Age Calculator
- Marginal tax rate
- The rate on your next dollar of income — your top bracket. Federal Income Tax Calculator 2026
- PITI
- Principal, interest, taxes and insurance: the full monthly cost of a mortgage. Home Affordability Calculator
- PMI
- Private mortgage insurance, usually required on a conventional loan with less than 20% down. Home Affordability Calculator
- Real return
- Return after inflation — what your money gains in buying power. Inflation Calculator
- Refinance
- Replacing your loan with a new one, usually for a lower rate or a different term. Mortgage Refinance Calculator
- RMD
- Required minimum distribution: the least you must withdraw each year from traditional IRAs and 401(k)s once RMDs start. RMD Calculator
- Roth
- An account funded with after-tax money that grows and comes out tax-free in retirement. Roth vs. Traditional Calculator
- Standard deduction
- A flat amount that reduces taxable income if you don’t itemize. Federal Income Tax Calculator 2026
- XIRR
- An annualized return for money invested at different times. XIRR Calculator