Investing tool
Debt recycling
Convert non-deductible debt over time.
Shows the mechanics of debt recycling: paying down non-deductible home loan debt and redrawing to invest, so the same total debt gradually becomes tax-deductible while an investment portfolio builds alongside.
The tool keeps the total debt line honest and visible. Debt recycling does not reduce debt; it changes its character, and the chart makes that impossible to miss.
What you see on screen
In the app this chart is live: every assumption is on screen, editable, and the projection moves as you change it.
Key inputs
- Home loan balance and rate
- Annual amount available to recycle
- Expected portfolio return and income yield
- Marginal tax rate for the deduction value
What it reports
- Non-deductible versus deductible debt, year by year
- The investment portfolio built alongside
- Tax saved on the converted interest
- Net position versus simply paying the loan down
Insights it surfaces
Alongside the numbers, the tool writes plain-language findings you can carry straight into the conversation. Example wording, from sample figures:
After 10 years, $228,000 of the loan has been converted to deductible debt and the strategy sits an estimated $47,300 ahead of simple repayment.
The strategy's edge depends on staying invested through downturns; the risk warnings on this tool are part of the output, not fine print.
Worth knowing
Debt recycling concentrates risk: the same asset secures both the home and the investment borrowing. The tool ships with strong risk warnings and they belong in any advice built on it.
Every tool, every time
Rates and thresholds come from the verified Australian rate set for the selected financial year. Every run can be saved as a scenario against the client, exported as a client-ready PDF or an Excel workbook with live formulas, and carried into an SOA or ROA. A methodology and audit PDF documents the calculation, and every output carries the compliance block.