• Set Yourself Up For Success Webinar

    October 6, 2021 at 2 PM Eastern/11 AM Pacific
    SDN and Osmosis are teaming up to help you get set up for success this school year! We'll be covering study tips, healthy habits, and meeting mentors.

    Register Now!

  • Site Updates Coming Soon

    Site updates are coming next week on Monday, Wednesday, and Friday. Click the button below to learn more!

    LEARN MORE

Loan Repayment Estimates

exmike

NOR * CAL
10+ Year Member
15+ Year Member
May 19, 2003
4,206
11
211
43
Bay Area
  1. Fellow [Any Field]
Upvote 0
About the Ads

juddson

3K Member
7+ Year Member
15+ Year Member
Aug 21, 2002
4,049
3
0
very nice, but I think your assumed tax rate is a bit optimistic even at the lowest income level.

You have to take into account federal taxes, state taxes, local taxes, social security taxes, medicare taxes, employment insurance taxes.

I was making $100,000 a year right before I stopped practicing law. My after tax takehome was about $5,000. That's an effective combined tax rate of something like ((5000)/(100,000/12) = .60) 40%. You can expect to keep about 60% of your before tax income if you are making around $100,000. That number can be expected to go down to around 55% as salaries increase to 300,000. These are old numbers, and do not reflect changes to the tax code in the last three years - but even then I think a combined rate of 40% is probably more accurate than your 31% rate.

I hope I am wrong (PLEASE, somebody tell me I am wrong - somebody familiar with the new rate tables). But this will lower your estimates somewhat.

Nice piece of work, though.

Judd
 
Upvote 0

ZekeMD

Full Member
15+ Year Member
Oct 11, 2003
838
6
251
  1. Fellow [Any Field]
Sorry, I forgot to post the rate I used. I assumed an interest rate of 7%. Not too high, but not too low.

Bmischen, I believe I calculated it as if the interest was being compounded monthly...I may have done it compounded daily (I honestly don't remember and I'd have to go thorough the numbers again to find out).

Juddson, I didn't look at any tax tables to figure out income. I figured to take home around 69% (based on my personal experience), but there are many many factors that go into this. I realize that it may be off somewhat, but it's merely to give an estimate.
 
Upvote 0

ZekeMD

Full Member
15+ Year Member
Oct 11, 2003
838
6
251
  1. Fellow [Any Field]
juddson said:
yea, also, I can't make out your interest rate. You seem to be calculating the "interest paid" amount as merely the "total payments" minus $100,000. I'm not sure I understand what you are doing.

Judd
Oh yeah, that was an error on my part. I forgot to change the value from 100,000 from tab to tab. Reload the page and it's fixed.
 
Upvote 0

Adapt

2K Member
7+ Year Member
15+ Year Member
Mar 19, 2003
2,048
6
0
ZekeMD said:
Juddson, I didn't look at any tax tables to figure out income. I figured to take home around 69% (based on my personal experience), but there are many many factors that go into this. I realize that it may be off somewhat, but it's merely to give an estimate.
I'm from CA and was particularly interested in this. I looked at both the state tax, the federal tax, and social security tax.

Under Bush's tax cut which was enacted for this year, a single person making 120K gross a year would come out with about 75K net. Under Clinton's plan before Bush's tax break, that same single person making 120K would make 73K net a year. That's a 2K difference or an extra month's loan payment.

For a married, person you can expect to make about 81K net from a 120K salary, but that's assuming you file jointly with your spouse so the 120K factors in both salaries of you and your spouse. In this day and age, your spouse will also work so really that 120K gross would increase.
 
Upvote 0
About the Ads

juddson

3K Member
7+ Year Member
15+ Year Member
Aug 21, 2002
4,049
3
0
That was my point. But as the previous poster said, the numbers change depending on state, marital status and number of dependants.

I think 69% is too high. On reflection, I think 60% might be a tad low. i think 63% is probably a good estimate with the current tax situation.

Judd
 
Upvote 0

juddson

3K Member
7+ Year Member
15+ Year Member
Aug 21, 2002
4,049
3
0
Hey Zeek, I would make the following changes (which I have done to my copy but don't know how to link to this board).

1. On the $100,000 page (you only need to do one page), put .07 in cell A1.
2. Put 100000 in cell A2.
3. In cell H2, put in the following formula:

=((($A$1/12)+(($A$1/12)/(((1+($A$1/12))^(H1*12))-1)))*$A$2)

4. Copy this forumala to all the cells in the second row (that is, so it calculates the monthy payment for each number of payback years)
5. In cell H4, the following formula: =(H3-$A$2)
6. Copy the formula in H4 across all the cells in Row 4.

Now you can erase all the pages except one. Now the user can simply plug in whatever loan interest rate he wants into cell A1 and any total loan amount into A2. This data will then spread throughout the spreadsheet.

I already did this to one of my sheets, and it seems to work OK. But i have no idea how to post it to this forum.

Judd
 
Upvote 0
About the Ads
This thread is more than 17 years old.

Your message may be considered spam for the following reasons:

  1. Your new thread title is very short, and likely is unhelpful.
  2. Your reply is very short and likely does not add anything to the thread.
  3. Your reply is very long and likely does not add anything to the thread.
  4. It is very likely that it does not need any further discussion and thus bumping it serves no purpose.
  5. Your message is mostly quotes or spoilers.
  6. Your reply has occurred very quickly after a previous reply and likely does not add anything to the thread.
  7. This thread is locked.