Includes 2% Medicare levy. Based on new July 2026 tax cuts.
Keeps funds accessible. Interest saved is tax-free.
$
$
Rates, insurance, management fees, repairs
ADVERTISEMENT
Monthly Payment
$0
Total Interest
$0
Total Paid
$0
Payoff Date
-
💡 Impact of Extra Payments
Interest Saved:$0
Time Saved:0 years
Payment Breakdown Over Time
💡 Smart Recommendations
Based on your loan details and investment
expectations, here's the optimal strategy:
💡 Tax Optimization Strategies
2026
Updated
Offset Account Strategy: Interest saved in an offset account is
tax-free. This is effectively a guaranteed return equal to your
mortgage rate (grossed up for tax).
Future Flexibility: Using an offset account instead of paying down the
loan directly preserves the full loan balance. If you ever rent out this property, the
interest on the full balance remains tax-deductible.
Debt Recycling: As you pay down your non-deductible home loan, you can
redraw funds to invest in income-producing assets, converting bad debt to good
(deductible) debt.
Negative Gearing: If investment expenses (interest + costs) exceed
rental income, you can offset the loss against your salary to reduce your tax bill.
Deductible Expenses: Claim interest, council rates, insurance, repairs,
property management fees, and depreciation.
Break-Even Analysis: Since interest is tax-deductible, your effective
interest rate is lower: Effective Rate = Interest Rate × (1 - Tax Rate)
Salary Sacrifice: Contributing extra to super is taxed at only 15% (vs
your marginal rate), potentially saving significant tax.
CGT Discount: Hold investment assets for >12 months to receive a 50%
Capital Gains Tax discount on sale.
2026 Tax Cuts: The 19% tax bracket has been reduced to 15%, increasing
disposable income for many Australians.
Recommended
Balanced Strategy
$0Extra to Mortgage0%
$0To Investments0%
📊 In 10 Years
Investment Portfolio$0
Loan Balance$0
🎯 At Loan Payoff
Years to Payoff0
Total Wealth$0
💰 Interest Saved
vs Minimum Payments$0
Investment Gains$0
✨ Why This Wins
⚖️ Trade-Offs to Consider
❌ What You're Giving Up
✅ What You're Gaining
📈 Break-Even Analysis
For investing to beat
paying off your mortgage, you need to earn at least this return:
Required Return
0%
Your Expected
0%
Margin
0%
🤔 Why This Strategy?
Strategy Comparison: Total Wealth at Payoff
📊 All Scenarios Compared
Compare all strategies side-by-side to make
an informed decision
Strategy
Split
Years to Payoff
Interest Paid
Investment Value
Total Wealth
vs Baseline
🎲 Risk Analysis
See how your optimal strategy performs
under
different market conditions
Best Case~15%
Favorable market conditions
Investment Return:10.0%
Interest Rate:5.5%
Total Wealth
$0
Optimal: -
Expected Case~50%
Your input assumptions
Investment Return:8.0%
Interest Rate:6.5%
Total Wealth
$0
Optimal: -
Worst Case~15%
Challenging market conditions
Investment Return:4.0%
Interest Rate:8.5%
Total Wealth
$0
Optimal: -
Wealth Outcome Range
🔍 Sensitivity Insights
Strategy Consistency
-
How often the same strategy wins
Wealth Volatility
-
Range of possible outcomes
⚠️ Important Disclaimers
These are educational estimates based on simplified assumptions, not financial advice
Investment returns vary and are not guaranteed - actual results may differ significantly
Consider your risk tolerance, emergency fund, and personal circumstances
Consult a licensed financial advisor before making major financial decisions
Past performance does not guarantee future results
Amortization Schedule
Period
Payment
Principal
Interest
Balance
📚 Definitions & Methodology
📉 vs Baseline
Compares your strategy against the standard Minimum Repayment Path (paying
off the loan over the full term with 0% extra payments). "Interest Saved" is the difference
between this standard path and your optimized strategy.
💰 Total Net Worth
Your projected wealth at loan payoff. calculated as:
Home Equity + Investment Value + Tax Savings
🏘️ Home Equity
Conservatively valued at the Original Loan Amount. We assume the property
maintains its value but do not include speculative market appreciation in the core
calculation to keep estimates safe.
💸 Tax Savings
(Investment Property Only) The cumulative cash benefit from Negative Gearing. Calculated
annually based on your Marginal Tax Bracket and reinvested into your wealth.