One page to work out the after-tax cost of your investment loan, and whether your expected return clears it.
Home › Resources › Hurdle Rate Worksheet
Debt recycling adds value only when your expected after-tax return beats the after-tax cost of the loan. This worksheet follows the method in our guide on whether debt recycling is worth it, one line at a time.
It suits anyone comparing the strategy with simply paying down the home loan, particularly high-income earners, where the deduction is worth most.
Prefer to work on screen? The hurdle rate calculator runs the same sums online.
Alex can look at how your loan is set up and tell you what would need to change. Free, no-obligation call, by phone or video.
Request a call with Alex →Interest on the investment split is generally tax-deductible, so part of the cost comes back at your marginal tax rate. The after-tax cost is roughly the loan rate multiplied by one minus your marginal rate. That is the hurdle your expected after-tax return has to clear.
They are assumptions, not forecasts. Your financial adviser can suggest reasonable long-run figures for the investments they recommend. Try a cautious set as well, because a gap that only works on optimistic numbers is a thin gap.
Not on its own. The hurdle tests whether the maths works on paper. Stable income, a cash buffer, a long horizon and comfort with volatility are a separate test, and both have to pass. Our readiness checklist covers the second test.
The same sums online, with your own numbers.
Read more → GUIDEThe break-even maths behind the worksheet, explained.
Read more → RESOURCEThe second test: whether the strategy fits your life.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
Alex, Jess and the Kingfisher team were second to none and their process from start to finish was faultless. As a self-employed business owner, it can be difficult to obtain finance at the best of times. The Kingfisher team made this an easy and efficient proposition and their continued transparent and efficient communication ensured we were kept up to date at all times. Highly recommend them for your finance needs!
Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
