Team: Candid Real Estate Group
Brokerage: RE/MAX 2000 Realty
Privacy
This site uses essential cookies to work. With your permission it also uses analytics and advertising cookies to understand which articles and neighbourhoods matter to you. See the privacy policy.
Calculators · Investing
What borrowing against your home to invest costs after any interest deduction, what it could grow to, and the return you need to break even.
Projected net gain after 10 years
+$27,113
$159,813 portfolio less the $100,000 borrowed and $32,700 of after-tax interest. The investment must return 4.09% a year just to break even.
If the first year loses 20%: −$10,705
| Month | Portfolio value | Detail |
|---|---|---|
| Year 1 | $104,800 | $3,270 interest paid to date · +$1,530 net |
| Year 2 | $109,830.4 | $6,540 interest paid to date · +$3,290 net |
| Year 3 | $115,102.259 | $9,810 interest paid to date · +$5,292 net |
| Year 4 | $120,627.168 | $13,080 interest paid to date · +$7,547 net |
| Year 5 | $126,417.272 | $16,350 interest paid to date · +$10,067 net |
| Year 6 | $132,485.301 | $19,620 interest paid to date · +$12,865 net |
| Year 7 | $138,844.595 | $22,890 interest paid to date · +$15,955 net |
| Year 8 | $145,509.136 | $26,160 interest paid to date · +$19,349 net |
| Year 9 | $152,493.574 | $29,430 interest paid to date · +$23,064 net |
| Year 10 | $159,813.266 | $32,700 interest paid to date · +$27,113 net |
Idle equity today
These calculators are educational illustrations, not advice and not an offer of credit. Figures are estimates from the inputs you enter and simplified rules; your lender's calculation, rates, fees, taxes and qualification will differ and are confirmed only by a licensed mortgage professional, lawyer or accountant. Mervin Truong is a licensed real estate professional, not a mortgage broker or financial advisor. Borrowing to invest magnifies losses as well as gains and suits few households; speak to a licensed advisor and an accountant first.
From estimate to plan
A calculator describes a scenario. I'll read it against what's selling now and introduce a licensed mortgage professional to confirm what you qualify for.