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Calculator

Caveats

This calculator does not account for passive losses and carry-forward losses. These would slightly increase your return if you plan to buy a property that will be in the red initially.
Please consult an accountant for reality. This calculator exists to give you a rough idea.

Step 1: ℹ️ Enter Some Information

1
Estimated Property Value:
$250,000.00
At times, the house value may differ from what you paid for it (motivated seller, etc.)
2
Purchase Price:
$250,000.00
3
Closing Costs:
$0.00
Mortgage points, etc.
4
Value of Buildings:
$150,000.00
You can only depreciate the cost of the buildings on the property
5
Initial Monthly Rent:
$2,500.00
6
Initial Utilties Cost:
$500.00
If you are paying utilities, put that amount here
There are no rows in this table

Step 2: 🎛 Turn Some Knobs

Down Payment Percentage
000
25
%
Mortgage Interest Rate
00
7
%
Mortgage Term
30 years
Expected Rent Growth Rate
00
3
% per year
Expected Utility Growth Rate
00
2
% per year
Expected Property Value Growth Rate
00
4
% per year
Insurance (as percentage of property value)
000
0.2
% (
$500.00
per year, initially)
Property Tax Rate (as percentage of property value)
000
1.1
% (
$2,750.00
per year, initially)
Vacancy Rate
00
8
%
Delinquency Rate
00
0
%
Marginal Tax Bracket
00
33
%
Long-Term Capital Gains Rate
00
15
%
Percentage of Repairs that Increase Basis
Some repairs (like roof repair or replacing cabinets or appliances) will increase the basis. Repairs like fixing a clogged drain will not.
000
50
%
Repair Rate
0
2
% of value of buildings
Property Management Rate
00
10
% of gross rent
Real Estate Agent Rate
00
6
%
Taxes on Property Sale
00
1
%
Years to Hold Property Before Selling
000
30

Step 3: 💰See Return on Investment

1
Annual Return
9.05%
2
Down Payment
$62,500.00
3
Net Profit
$777,948.23
4
Mortgage Payment
$1,247.44
There are no rows in this table
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