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Oxygen Mortgage - Opportunity Cost Calculator
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

Mortgage Details

$2,661
$28,000
$3,932
$558,000
$400,000

Tax Benefits Calculator

22%
5.46%
$6,160

Investment Alternative Analysis

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

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)