Net Cost of Borrowing

Change these fields as desired:


Net Cost of Borrowing
Use this to compare the real after-tax interest rate of your mortgage. Then compare your after-tax yields on taxed investments and tax protected (i.e. tax-deferred 401(k),403(b),IRA accounts or tax free Roth or Education IRA accounts).

Nominal Mortgage Interest Rate
Expected Return Rate
Marginal Federal Tax Rate
Marginal State Tax Rate

Effective After-Tax Loan Interest Rate: %

Effective After-Tax Investment Yield Rate: %

Information and interactive calculators are made available to you, a financial advisor, as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to client’s individual circumstances. All examples are hypothetical and are for illustrative purposes. Related to tax implications, property purchase and sale prices, and loan terms clients need to seek personalized advice from qualified real estate and tax professionals.