Calculated Industries 3420 User Guide - Manual (Page 67)

66 — Q UALIFIER P LUS ® III X
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 calculation 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 mortgage 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 8 ˆ 8.00
Enter annual prop. Tax 1 5 0 0 t 1,500.00
Enter annual prop. Ins. 2 5 0 I 250.00
Enter Loan Amount 1 5 0 ) l 150,000.00
Find P&I Payment p “run” 1,100.65
Find PITI Payment p 1,246.48
Enter Tax bracket 2 8 s p 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
— 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 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 Mo. Offset to Jan. 1 s ) 1.00
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