Debt Recycling Calculator
Explore the debt recycling strategy: convert non-deductible mortgage debt into tax-deductible investment debt. See tax savings and long-term net benefit.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
Inputs
Results
10-Year Net Benefit
$37,546.25
≈ 3 years of state college
How to Use This Calculator
- Enter your current mortgage balance and interest rate.
- Input the investment amount you plan to redirect and the expected investment return rate.
- Set your marginal tax rate to calculate the annual tax deduction benefit from investment loan interest.
- Review Annual Tax Deduction, Tax Savings, and Net Investment Return to assess the strategy's effectiveness.
- Check Years to Break Even and 10-Year Net Benefit to determine if debt recycling makes financial sense for your situation.
How the result changes with Expected Annual Return
| Expected Annual Return | 10-Year Net Benefit |
|---|---|
| 3% | -$3,204.18 |
| 11% | $71,571.05 |
| 20% | $239,186.82 |
| 27% | $475,366.93 |
What each input means
- Mortgage Balance
- Current mortgage balance (used for reference context).
- Mortgage / Loan Rate
- Interest rate that will apply to the investment loan portion.
- Investment Amount
- Amount redirected from mortgage to investments.
- Expected Annual Return
- Expected average annual return on investments.
- Marginal Tax Rate
- Your marginal income tax rate for calculating the deduction benefit.
Engine last updated . Checked against 1 independently-derived test — how we verify calculators.
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