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Oxygen Mortgage - Opportunity Cost Calculator
OXYGEN
Mortgage
Robert Egeland, Founder
Oxygen Mortgage LLC
3800 Arapahoe Ave., Suite 210, Boulder, CO 80303
720.308.0055 |
[email protected]
Mortgage Leverage Opportunity Cost Calculator
Discover the financial advantage of using a mortgage versus paying cash for your home
Loan Parameters
Purchase Price:
Down Payment ($):
Down Payment (%):
Loan Amount:
Mortgage Rate (%):
Loan Term (years):
Mortgage Details
Monthly Payment:
$2,661
Annual Interest (Year 1):
$28,000
Principal Paid (Year 1):
$3,932
Total Interest (Life of Loan):
$558,000
Total Principal Paid:
$400,000
View Amortization Schedule
Tax Benefits Calculator
Your Annual Income:
Filing Status:
Single
Married Filing Jointly
Head of Household
State for Capital Gains Tax:
Colorado (4.4%)
California (up to 13.3%)
Florida (0%)
New York (up to 10.9%)
Texas (0%)
Washington (7% over $250k)
Your Tax Bracket:
22%
Effective Tax Rate After Deduction:
5.46%
Annual Tax Savings (Year 1):
$6,160
Note: Mortgage interest deduction is limited to loans up to $750,000 for mortgages taken after Dec 15, 2017.
Investment Alternative Analysis
Conservative Return Rate (%):
Moderate Return Rate (%):
Aggressive Return Rate (%):
Investment Period
Conservative (6%)
Moderate (8%)
Aggressive (10%)
Cash to Invest:
$400,000
$400,000
$400,000
5 Year Value:
$535,000
$588,000
$644,000
10 Year Value:
$716,000
$864,000
$1,037,000
20 Year Value:
$1,283,000
$1,866,000
$2,691,000
30 Year Value:
$2,297,000
$4,025,000
$6,978,000
Refinance Scenarios
New Rate After Refinance (%):
Refinance After
1 Year
3 Years
5 Years
No Refinance
Total Interest Paid:
$432,000
$448,000
$467,000
$558,000
Interest Savings:
$126,000
$110,000
$91,000
$0
Complete Opportunity Cost Analysis
Amount Available to Invest: $400,000
5 Year Opportunity Cost
Return Scenario
Conservative (6%)
Moderate (8%)
Aggressive (10%)
Investment Growth (5y):
$135,000
$188,000
$244,000
Less: Interest Paid (5y):
-$138,000
-$138,000
-$138,000
Plus: Tax Savings (5y):
+$31,000
+$31,000
+$31,000
Less: Capital Gains Tax:
-$34,000
-$47,000
-$61,000
Net at 5 Years:
-$6,000
$34,000
$76,000
10 Year Opportunity Cost
Return Scenario
Conservative (6%)
Moderate (8%)
Aggressive (10%)
Investment Growth (10y):
$316,000
$464,000
$637,000
Less: Interest Paid (10y):
-$265,000
-$265,000
-$265,000
Plus: Tax Savings (10y):
+$58,000
+$58,000
+$58,000
Less: Capital Gains Tax:
-$79,000
-$116,000
-$159,000
Net at 10 Years:
$30,000
$141,000
$271,000
30 Year Opportunity Cost
Return Scenario
Conservative (6%)
Moderate (8%)
Aggressive (10%)
Investment Growth (30y):
$1,897,000
$3,625,000
$6,578,000
Less: Total Interest:
-$558,000
-$558,000
-$558,000
Plus: Tax Savings (est):
+$123,000
+$123,000
+$123,000
Less: Capital Gains Tax:
-$474,000
-$906,000
-$1,645,000
Net Opportunity Cost:
$988,000
$2,284,000
$4,498,000
By Using a Mortgage Instead of Cash, You Could Gain:
$2.3 Million
Over 30 Years (After Taxes)
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Amortization Schedule