Calculate your debt recycling scenario by entering your details below.
ℹ️ Information
What is debt recycling?
Debt recycling involves refinancing or redrawing funds from your offset account to invest in income producing assets. The idea is to turn your "bad debt" into tax-deductible "good debt".
The key requirement for the interest to qualify as deductible is that the funds must be used to earn income.
While this can be a very effective strategy for building wealth, it's important to consider the risks, such as the possibility of losing money if your investments underperform, or worse, go to zero.
Descriptions and examples for all fields are provided below.
Field
Description
Example
Salary
Your annual salary. This, along with any dividends income will be used to determine your bracket.
150000
Initial Investment
The initial amount you will pay down, recycle and invest. This is the available cash you have now, e.g. in the bank or in your offset account.
100000
Annual Investment
The annual amount you will pay down, recycle and invest. This should take into account regular payments as well as any additional payments you expect to make.
50000
Mortgage
The total size of your mortgage loan.
600000
Mortgage Interest Rate
The projected annual mortgage interest rate.
5
Dividend Return Rate
The projected annual dividend return rate.
2
Capital Growth Rate
The projected annual capital growth rate.
8
Years
The number of years to project the scenario.
10
Country
Select the country you live in. Used to determine your tax bracket according to your combined income from salary and dividends.
Australia
Reinvest Dividends
Whether to reinvest your dividend income via debt recycling.
✔️
Reinvest Tax Refunds
Whether to reinvest your tax refunds via debt recycling.
✔️
DISCLAIMER
This calculator is for illustrative purposes only and is not to be misconstrued as financial advice.
It does not take into account your individual needs, goals and objectives.
The results are simply assumptions based on the information provided and are not guaranteed to be accurate.
In particular, it does not take into account any changes in the market, rates of return, interest rates, tax legislation or any extraordinary occurrences that may impact your results.
It also does not take into account franking credits, or the (hopefully) increasing value of your property and the subsequent increase in available equity.
It is better to be vaguely right than exactly wrong.