Debt Recycling Calculator

This calculator models redirecting Investment Amount from a mortgage into investments, treating the interest on that redirected amount — at Mortgage / Loan Rate — as a tax-deductible investment-loan expense. Annual Tax Deduction is simply Investment Amount times Mortgage / Loan Rate (line 61), and Annual Tax Savings multiplies that by Marginal Tax Rate (line 63). Mortgage Balance only gates whether the calculation runs at all — the early return at line 12 requires it above $0 — but once positive, its actual size never appears in any formula afterward; changing it from $400,000 to $40,000 or $4,000,000 leaves every output completely unchanged, consistent with its own helper text calling it "reference context." Expected Annual Return dominates 10-Year Net Benefit: a 10% nudge moves the ten-year figure by roughly 43%, ahead of Investment Amount (about 20%) and Mortgage / Loan Rate (about 11%), because the ten-year loop compounds the investment return year over year (lines 96-104) while the interest cost it's weighed against stays flat — the code explicitly holds "loan balance stays same" each year rather than amortizing it down.

Years to Break Even is a coarse, branch-driven figure rather than a smooth calculation: at these defaults the first year's net benefit is already positive, so the branch at lines 73-74 fires and the output locks to exactly 1 — it only reports a larger number, via the year-by-year loop, when that first-year figure is negative. This calculator does not model changing tax law, investment losses, variable mortgage rates, or the risk of borrowing against home equity to invest.