Estimated “After-Tax” Payment
Note:This “after-tax” payment calculation is only an estimate, since
it does not include adjustments for specific tax variables for an
individual’s situation, different applications of tax laws, etc. The
individual should consult a tax specialist when figuring accurate
and detailed tax information.
Buyers in an approximate 28% income tax bracket are looking
to finance a $150,000 mortgage for 30 years at 9.75% annual
interest. If they will be paying approximately $1,500 in annu-
al property taxes and $350 in annual insurance, find their esti-
mated “after-tax” monthly payment.
Steps Keystrokes Display
Clear calculator [On/C] [On/C] 0.00
Enter annual taxes 1,500 [Tax] 1,500.00
Enter annual insurance 350 [Ins] 350.00
Enter annual interest 9.75 [Int] 9.75
Enter term in years 30 [Term] 30.00
Enter loan amount 150,000 [L/A] 150,000.00
Find P&I payment [Pmt] “run” 1,288.73
Find PITI payment [Pmt] 1,442.90
Enter tax bracket to find
annual tax deduction 28 [Set] [Pmt] 4,504.20
Find monthly tax deduction [Pmt] 375.35
Find “after-tax” payment [Pmt] 1,067.55
— DO NOT CLEAR CALCULATOR —
If the above loan starts in July, find the “after-tax” payment.
Steps Keystrokes Display
Set Mo. 1 Offset to July 7 [Set] [:] 7.00
Enter tax bracket to find
annual tax deduction 28 [Set] [Pmt] 2,255.09
Find monthly tax deduction [Pmt] 375.85
Find “after-tax” payment [Pmt] 1,067.05
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