Smith Maneuver Calculator
While our Smith Maneuver calculator is currently under re development, we invite you to:
- Connect with us for a free online consultation and personalized calculations in the calendar on this page.
- Review the Smith Maneuver calculations just below, which illustrate some of our most popular calculation requests including: (1) Excellent case outcome (2) Moderate case outcome (3) Poor case outcome/ a ‘stress test’ for break even.
Excellent Case Calculation
| Input | Assumption |
|---|---|
| Amortization | 20 YRS |
| Mortgage Rate4 | 4% |
| Starting Mortgage Balance | $500.000 |
| HELOC Rate | 5% |
| Marginal Tax Rate | 29.65% |
| Return on Investment | 9% |
| RESULT: Tax Savings | $81,423 |
| RESULT: Total Investment Value | $1,114,483 |
| RESULT: Net Profit | $614,483 |
Moderate Case Calculation
| Input | Assumption |
|---|---|
| Amortization | 20 YRS |
| Mortgage Rate | 4.5% |
| Starting Mortgage Balance | $500,000 |
| HELOC Rate | 5.5% |
| Marginal Tax Rate | 29.65% |
| Return on Investment | 6.5% |
| RESULT: Tax Savings | $89,138 |
| RESULT: Total Investment Value | $813,993 |
| RESULT: Net Profit | $313,993 |
Break Even Case Calculation
| Input | Assumption |
|---|---|
| Amortization | 20 YRS |
| Mortgage Rate | 7% |
| Starting Mortgage Balance | $500,000 |
| HELOC Rate | 8% |
| Marginal Tax Rate | 29.65% |
| Return on Investment | 3.2% |
| RESULT: Tax Savings | $126.979 |
| RESULT: Total Investment Value | $501,426 |
| RESULT: Net Profit | $1,426 |
Disclaimer: Past performance does not guarantee future results. The information on this page is for education and illustrative purposes only, and is not intended to be used as, or construed as investment advice. Seek the advice of a licensed investment processional before investing.