Rental property return
Work out what a rental property really earns: with all purchase costs, the mortgage, empty months, yearly expenses and what you would get when you sell.
Net yield (first year)
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Gross yield
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Monthly cash flow (first year)
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Cash-on-cash return
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IRR until sale
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Cash you put in upfront
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Break-even rent
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Year-by-year projection
| Year | Rent collected | Expenses | Interest | Taxes | Cash flow after mortgage | Debt outstanding | Property value |
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Sensitivity: IRR by price growth and months rented
With everything else unchanged. It shows how much the result depends on prices rising and the property always being rented.
How it is calculated
- Gross yield = 12 months of rent ÷ price. Net yield = (rent collected − expenses) ÷ total cost (price + taxes + purchase costs + renovation).
- Cash flow = rent collected − expenses − mortgage payments − tax. Cash-on-cash return = first-year cash flow ÷ cash put in upfront.
- IRR: the annual return that matches the cash you put in with each year's cash flow and what you get back when selling (value − selling costs − debt outstanding).
Assumptions
- Rent, expenses and value change once a year by the percentages you enter.
- Simplified tax on net rent minus interest; it does not apply any country's tax rules or depreciation allowances.
- Future estimates are not guaranteed: try cautious scenarios.