Smoking is a serious addiction but if you are a smoker, you're definitely aware of it. It accounts for roughly 480,000 deaths annually the US alone and millions more around the globe. As you could see from our addiction calculator it tends to also significantly shorten your life. One thing we however tend to forget is how smoking regularly can affect our budget.
We simply collect the number of cigarettes you smoke and assume you invest the money you don't spend on them (the default return on investment is set to 7%, feel free to change it). As is often the case, people greatly underestimate the power of compound interest. Let's take a typical scenario: a pack of Marlboros costs $6.50, John smokes 20 cigarettes per day. He's 25 years old and wonders: what could I buy at 55 if I quit now and saved that cash? The plain, uninvested cash alone gives a pretty nice sum: over $71000. But when invested at 7% per annum, it gives an additional $170k for a total sum of $241000... that's a 240000 reasons to quit smoking now!
Additionally, it also tells you how many cigarettes you'd smoke over the whole period and how your life expectancy improves thanks to not smoking.
Keep in mind that the calculator does not account for inflation - $100k twenty years from now will be worth less. On the other hand, globally prices of cigarettes increase every year due to new taxes imposed by governments trying to tackle the problem. The trend is simple - if you keep smoking the same amount of cigarettes for years to come, it will cost you more and more while your income might not necessarily increase. If this is one more thing that makes you think about quitting, this tool we called 'Quit Smoking and Save calculator' might be of some additional help.
Suppose you're a heavy smoker and need a fresh pack of 5$ cigarettes every day. If you quit smoking today and managed to stay clean for another 30 years, your budget would grow by only 1,825 bucks this year and by over $185,000 by 2046 (assuming 7% annual return rate). Even if you're more of an occasional smoker and need on average only 2 puffs per day, in 10 years you'd be richer by nearly $5,000. Sounds tempting? Play a bit with the smoking cost calculator and see how would your savings shape in various scenarios.
To get the most accurate results, check how many cigarettes fit in your pack. This number is often regulated by governments and as such here are the most common sizes:
While developing this cigarette cost calculator we used common formulas previously known from investment calculator. Those formulas shape the interests that appear in red on the chart above while the blue diagrams are actual amount that you simply wouldn't have spent. As you can see the interests grow at much faster rate as the years progress, significantly increasing your savings.