# Formula in After tax

• 12 years ago

Guys, I'm writing  a program that computes the annual after-tax cost of a new house for the first year of ownership. The cost is computed as the annual mortgage cost minus the tax savings. The input should be the price of the house and the down payment. The annual mortgage cost can be estimated as 3% of the initial loan balance credited toward paying off the loan principal plus 8% of the initial loan balance in interest. The initial loan balance is the price minus the down payment. Assume a 35% marginal tax rate and assume that interest payments are tax deductible. So, the tax savings is 35% of the interest payment.

The sample output should be:

House price: 220000

Down payment: 10000

Annual after-tax cost: 17220.00

The problem is that my sample output is not equal to my program, hope you could help me out, thanks

formula for the following:   initialloan = houseprice - dwpayment;

taxsave = annualmortagage*.35;

annualtax  = annualmortage - taxsave;

mortgage..... (having problems with analyzing 3 and 8 percent, im kinda confused)

Hope you guys could lend me a hand... thanks

• 12 years ago

Thanks a lot! Now all i have to do is translate all those formula into C++ program.

### Contribute

Why not write for us? Or you could submit an event or a user group in your area. Alternatively just tell us what you think!

### Our tools

We've got automatic conversion tools to convert C# to VB.NET, VB.NET to C#. Also you can compress javascript and compress css and generate sql connection strings.

“UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.”