By now, most people here know that I’m interested in the Smith Manoeuvre. If you are new to this concept, you can read more about them in my article “Mastering The Smith Manoeuvre“.
Originally, I discovered the Smith Manoeuvre, through a great thread on RedFlagDeals.com that talks exclusively about the strategy. This includes the tax implications, the various mortgages available, and some calculations relating to potential return. I then knew a Smith Manoeuvre calculator will be very handy.
Smith Manoeuvre Calculator / Spreadsheet for Excel
Cannon_Fodder, a regular contributor of RFD has created an Excel spreadsheet that he is willing to share with the world. He was even gracious enough to allow me to share the spreadsheet with you!
You can download Cannon_Fodder’s Excel Smith Manoeuvre spreadsheet here.
Update: Cannon_Fodder has released version 2 of the SM Spreadsheet.
Since the Excel spreadsheet doesn’t come with a manual, I will provide a few notes on HOW to use the program. Note, you are going to have to enable macros when you open the program.
- Go to the “input” tab which for the most part is the only sheet you’ll need. The other tabs are primarily “Calculation” sheets, however, they can be helpful to see exactly what is going on.
- Enter all relevant information as it pertains to you. The only portion that I have confusion with was the “Periodic investments” portion. If you choose biweekly payments (26 payments/year), then your periodic investments will be calculated as bi-weekly also. So if you’re accustomed to investing monthly use this formula: Periodic Investment = (Monthly Investment * 12 / 26)
- Everything else should be self explanatory. I didn’t fool around with the “Cash Flow Damn” option, so I won’t comment on that.
- Remember that your “Starting LOC” value is the equity in your home. In mathematical terms: (Home Value x 75%) – Mortgage Balance.
This excel is how I do my own Smith Manoeuvre calculations. It has been tested many times over the years and it provides accurate responses. With that being said as a fair disclosure since this is an external resource I would like to note that I do not guarantee its accuracy.
Simple Smith Manoeuvre Calculator /(MDJ Widget)
As times progressed, as I originally wrote this post in 2007, I came to realise that the Smith Manoeuvre is growing in popularity among financially-savvy Canadians and that many of them may seek a simpler no-download solution. This is why I created this simple calculator below:
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