Value Driver Tree is used for top down planning and should be a part of SAC planning skill set. I suggest to play with it using Household training model.
In my example, I defined Tax % KPI which is driven by Gross Salary, RRSP %, RRSP, Net Salary and Tax as displayed below.
User can change RRSP % to impact Salary Net, Tax and eventually Tax %. Increasing RRSP % brings Sales Net to lower tax bracket and reduce Tax %
Value Driver Tree can be quite complex and powerful. Take Tax calculation formula for example.
Tax is calculated as described here
- This example demonstrates Value Driver Tree functionality and is not a tax advise. Consult your tax preparation professional
- RRSP contribution is a subject to RRSP room