Using home equity loan to invest in mutual funds - with dividends reinvested
Loan amount … 65000
Mutual funds … 65000
Interest rate … 7.00%
Monthly div at 12% pa … 650
Monthly payment 584
After-tax monthly div at 12% pa … 552.5  - taxed @15%
Final loan balance 0
Monthly div at 10% pa … 542
Loan period … 180  months
After-tax monthly div at 10% pa … 460.7  - taxed @15%
New home equity loan Mutual fund @ 12% Mutual fund @ 10%
Month Opening balance Interest Repay Closing balance Opening balance (col B)   Gross dividend @12% (col 1) Tax @ 15%   (col 2) After-tax dividend re-invested (col 3)    = (col 1 - col 2) After-tax closing balance   (col B + col 3) Cumulative after-tax dividend re-invested (col 4) Cumulative home equity loan repaid with own money     (col 5) After-tax net cash flows (col 6) Opening balance (col B)   Gross dividend @12% (col 1) Tax @ 15%   (col 2) After-tax dividend re-invested (col 3)     = (col 1 - col 2) After-tax closing balance    (col B + col 3) Cumulative after-tax dividend re-invested (col 4) Cumulative home equity loan repaid with own money     (col 5) After-tax net cash flows (col 6)
1 65000 379 -584 64795 65000 650 -97.50 553 65553 553 -584 -31 65000 542 -81.25 460 65460 460 -584 -124
2 64795 378 -584 64589 65553 656 -98.33 557 66110 1110 -1168 -58 65460 546 -81.83 464 65924 924 -1168 -244
3 64589 377 -584 64381 66110 661 -99.17 562 66672 1672 -1753 -81 65924 549 -82.41 467 66391 1391 -1753 -362
4 64381 376 -584 64173 66672 667 -100.01 567 67239 2239 -2337 -98 66391 553 -82.99 470 66861 1861 -2337 -476
5 64173 374 -584 63963 67239 672 -100.86 572 67811 2811 -2921 -110 66861 557 -83.58 474 67335 2335 -2921 -586
6 63963 373 -584 63752 67811 678 -101.72 576 68387 3387 -3505 -118 67335 561 -84.17 477 67812 2812 -3505 -693
7 63752 372 -584 63539 68387 684 -102.58 581 68968 3968 -4090 -122 67812 565 -84.77 480 68292 3292 -4090 -798
8 63539 371 -584 63326 68968 690 -103.45 586 69554 4554 -4674 -120 68292 569 -85.37 484 68776 3776 -4674 -898
9 63326 369 -584 63111 69554 696 -104.33 591 70145 5145 -5258 -113 68776 573 -85.97 487 69263 4263 -5258 -995
10 63111 368 -584 62895 70145 701 -105.22 596 70741 5741 -5842 -101 69263 577 -86.58 491 69754 4754 -5842 -1088
11 62895 367 -584 62677 70741 707 -106.11 601 71342 6342 -6427 -85 69754 581 -87.19 494 70248 5248 -6427 -1179
12 62677 366 -584 62459 71342 713 -107.01 606 71948 6948 -7011 -63 70248 585 -87.81 498 70746 5746 -7011 -1265
13 62459 364 -584 62239 71948 719 -107.92 612 72560 7560 -7595 -35 70746 590 -88.43 501 71247 6247 -7595 -1348
14 62239 363 -584 62018 72560 726 -108.84 617 73177 8177 -8179 -2 71247 594 -89.06 505 71752 6752 -8179 -1427
15 62018 362 -584 61795 73177 732 -109.77 622 73799 8799 -8764 35 71752 598 -89.69 508 72260 7260 -8764 -1504
16 61795 360 -584 61571 73799 738 -110.70 627 74426 9426 -9348 78 72260 602 -90.33 512 72772 7772 -9348 -1576
17 61571 359 -584 61346 74426 744 -111.64 633 75059 10059 -9932 127 72772 606 -90.97 515 73287 8287 -9932 -1645
18 61346 358 -584 61120 75059 751 -112.59 638 75697 10697 -10516 181 73287 611 -91.61 519 73806 8806 -10516 -1710
19 61120 357 -584 60892 75697 757 -113.55 643 76340 11340 -11101 239 73806 615 -92.26 523 74329 9329 -11101 -1772
20 60892 355 -584 60663 76340 763 -114.51 649 76989 11989 -11685 304 74329 619 -92.91 526 74855 9855 -11685 -1830
21 60663 354 -584 60433 76989 770 -115.48 654 77643 12643 -12269 374 74855 624 -93.57 530 75385 10385 -12269 -1884
22 60433 353 -584 60202 77643 776 -116.46 660 78303 13303 -12853 450 75385 628 -94.23 534 75919 10919 -12853 -1934
23 60202 351 -584 59968 78303 783 -117.45 666 78969 13969 -13438 531 75919 633 -94.90 538 76457 11457 -13438 -1981
24 59968 350 -584 59734 78969 790 -118.45 671 79640 14640 -14022 618 76457 637 -95.57 542 76999 11999 -14022 -2023
25 59734 348 -584 59498 79640 796 -119.46 677 80317 15317 -14606 711 76999 642 -96.25 545 77544 12544 -14606 -2062
26 59498 347 -584 59261 80317 803 -120.48 683 81000 16000 -15190 810 77544 646 -96.93 549 78093 13093 -15190 -2097
27 59261 346 -584 59023 81000 810 -121.50 689 81689 16689 -15774 915 78093 651 -97.62 553 78646 13646 -15774 -2128
28 59023 344 -584 58782 81689 817 -122.53 694 82383 17383 -16359 1024 78646 655 -98.31 557 79203 14203 -16359 -2156
29 58782 343 -584 58541 82383 824 -123.57 700 83083 18083 -16943 1140 79203 660 -99.00 561 79764 14764 -16943 -2179
30 58541 341 -584 58298 83083 831 -124.62 706 83789 18789 -17527 1262 79764 665 -99.71 565 80329 15329 -17527 -2198
31 58298 340 -584 58054 83789 838 -125.68 712 84501 19501 -18111 1390 80329 669 -100.41 569 80898 15898 -18111 -2213
32 58054 339 -584 57808 84501 845 -126.75 718 85219 20219 -18696 1523 80898 674 -101.12 573 81471 16471 -18696 -2225
33 57808 337 -584 57561 85219 852 -127.83 724 85943 20943 -19280 1663 81471 679 -101.84 577 82048 17048 -19280 -2232
34 57561 336 -584 57313 85943 859 -128.91 731 86674 21674 -19864 1810 82048 684 -102.56 581 82629 17629 -19864 -2235
35 57313 334 -584 57063 86674 867 -130.01 737 87411 22411 -20448 1963 82629 689 -103.29 585 83214 18214 -20448 -2234
36 57063 333 -584 56811 87411 874 -131.12 743 88154 23154 -21033 2121 83214 693 -104.02 589 83803 18803 -21033 -2230
37 56811 331 -584 56558 88154 882 -132.23 749 88903