Calculated Industries 3430 - Estimated Income Tax Savings and After-Tax Payment

U
SER’S GUIDE — 55
Estimated Income Tax Savings and “After-Tax” Payment
Important Note: This example estimates the annual tax savings
(including property tax and mortgage interest). It is important to
inform your clients to consult a tax advisor for an accurate income
tax deduction computation for their particular tax situation.
Buyers in a 28% income tax bracket are looking to finance a $150,000
mortgage for 30 years at 8% annual interest. If they will be paying
approximately $1,500 in annual property taxes and $250 in annual
property insurance, find their estimated annual tax savings (or mort-
gage interest/property tax savings) and “after-tax” monthly payment.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Term in years 3 0 T 30.00
Enter annual Interest rate 8 ˆ 8.00
Enter annual property tax 1 5 0 0 s 7 1,500.00
Enter annual property ins. 2 5 0 s 8 250.00
Enter Loan Amount 1 5 0 ) l 150,000.00
Find monthly P&I Payment p “run” 1,100.65
Find monthly PITI Payment p 1,246.48
Enter tax bracket 2 8 s p* “run” 28.00
Find annual income
tax savings p 3,767.32
Find monthly tax savings p 313.94
Find “after-tax” Payment p 932.54
*For desktop model, press † key to perform this function.
— DO NOT CLEAR CALCULATOR —
If the above loan starts in July, find the “after-tax” payment.
STEPS KEYSTROKES DISPLAY
Set Month Offset to July 7 s ) 7.00
Enter tax bracket 2 8 s p* 28.00
Find annual tax savings p 1,887.16
Find monthly tax savings p 314.53
Find “after-tax” Payment p 931.95
Return Month Offset to
January 1 s ) 1.00
*For desktop model, press † key to perform this function.