Real Estate Investment Calculator

Know the return on cash invested for any rental property.

Real Estate Investment Calculator

Analyze the value of purchasing an investment property or renting your home or condo with the calculator below. Add your information in the green boxes to instantly calculate the ROI, cash flow, and IRR. Adjust any of the inputs and the results will instantly update to reflect the changes.

Note: Assumptions are hidden by default. Expand the assumptions line to change the assumptions or optional inputs.

1 - Purchase and Value Information

requireRequired InputsoptionalOptional Inputs
Current Value$ Price paid including capital improvements
Cash Investment % down = $
Mortgage$
Mortgage Rate% interest rate of mortgage
Assumptions (optional inputs)

2 - Expected Rents

Monthly Rent$ Gross monthly rental income Find estimated rents
Cap Rate%
Assumptions (optional inputs)

3 - Rental Costs

Property Improvements$ initial expenditures to get home ready for rental
Assumptions (optional inputs)

4 - Sale of the Investment Property

Sales Price$
Assumptions (optional inputs)

5 - Taxes, Inflation, & Return Assumptions

Value of the Land % of purchase price = $
Tax Basis$
Property Tax Rate% of property value Find property tax rates
Assumptions (optional inputs)

Expected Cash Flow and Return

Return on Cash Invested
Projected 5 year IRR
Internal Rate of Return (IRR): IRR calculations are commonly used to evaluate the desirability of investments or projects. The higher a project, IRR, the more desirable it is to undertake the project. Assuming all projects require the same amount of up-front investment, the project with the highest IRR would be considered the best and undertaken first.

http://en.wikipedia.org/wiki/Internal_rate_of_return

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InitialYear 1Year 2Year 3Year 4Year 5Net Total
Projected Cash Flow
Show Detailed Investment Performance
print


hideTable 1 - Cash Flows & ROI Details

Cash Flow DetailsInitialYear 1Year 2Year 3Year 4Year 5Total


Purchase Investment
Net Cash Flow (see Table 2)
Sales Price
Selling costs
Taxable Gain
See the following Sales Transaction Details for calculations.

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Taxes
Note Payoff (see Table 4)


Total Annual Cash Flow


Year 1Year 2Year 3Year 4Year 5Total


ROI Details- Net cash flow


Present Value - Cash flows discounted by hurdle rate


Walk Away Price - Breakeven price between renting and selling


Sales Transaction DetailsYear 5Total


Sales Price
Selling costs


Cash Proceeds (before taxes and note repayment)
Depreciated Basis
Taxable Gain
Depreciation Recapture Tax
Depreciation Recapture is
when real property is sold at a gain and depreciation had been claimed, the owner is required to pay a tax at ordinary rates to the extent of the depreciation on residential real estate.

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Capital Gains Tax
Note Payoff (see Table 4)


Cash from Sale (proceeds less taxes and less debt)



hideTable 2 - Yearly Financial Projections Details

Financial ProjectionsYear 1Year 2Year 3Year 4Year 5Total

Rent Income
Rental Expenses
Interest
Taxes
Insurance
Tenant Turnover costs
Tenant Turnover Costs reflects estimated costs when a home is vacant and is re-rented. It reflects make-ready costs, leasing commissions, and advertising (if self-managed). Lower vacancy rates and longer term leases reduce these expenses. The U.S. average is 8%.

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Maintenance
Buying cost
Professional Management
Total Rental Expense
Net Income1
Depreciation
Taxable income
Tax (benefit) cost2
Principal Reduction3
Capital expenditures4

Net Cash Flow (1-2-3-4)


hideTable 3 - ROI Table Details

Year 1Year 2Year 3Year 4Year 5
Initial Investment
Yearly Price Appreciation
Appreciation Net of Taxes
Net Cash Flow
Net Worth Increase
ROI (net worth/initial investment)


hideTable 4 - Year Ending Balances Details

Ending Year Balances
Debt Calculations Beg. Balance Year 1Year 2Year 3Year 4Year 5
Loan Balance
Interest
Principal Reduction
Mortgage Payments

Sample Material Disclaimer

Provided by All Property Management, as is, for demonstration purposes only without warranty of any kind, express, implied or statutory. Examples, if any, are based on limited and dated information and may not be relied upon for accuracy or any other purpose other than illustrative of possible results. ©2013 Seamusco LLC.

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