Worked example: Real Estate Calculator
Unlevered rental. This fixed reference example shows one complete scenario; the interactive results above use your current inputs.
View the example inputs
- Property price
- 100000 $
- Down payment
- 100000 $
- Purchase closing costs
- 0 $
- Gross monthly rent
- 1000 $
- Vacancy allowance
- 0 %
- Annual operating expenses (exclude loan payments)
- 2000 $
- Annual nominal interest rate
- 0 %
- Term
- 10 years
- Holding period
- 1 years
- Assumed annual appreciation
- 0 %
- Selling-cost rate
- 0 %
| Calculated quantity | Example result |
|---|---|
| Annual net operating income | $10,000.00 |
| First-year cash flow after debt service | $10,000.00 |
| Capitalization rate | 10 % |
| First-year cash-on-cash return | 10 % |
| Monthly loan payment | $0.00 |
| Estimated sale equity | $100,000.00 |
| Loan balance at sale | $0.00 |
Reading growth and return scenarios
Separate a rate from its compounding convention
An annual effective return already describes a full year of growth. A nominal annual rate needs its compounding frequency to determine the effective growth. A quoted APY, a nominal interest rate and an arithmetic average return are therefore not interchangeable inputs. Use the convention named in the form.
Contributions change both the final balance and how much money you have put in. Compare growth with total contributions rather than calling the entire final balance profit. Timing matters: a beginning-of-period deposit earns growth for an extra period compared with an otherwise equal ending deposit.
Interpret projections as conditional arithmetic
A constant-return projection answers what would happen if the entered assumptions held. It does not model market volatility or establish a future return. Tax, product fees, withdrawals and inflation may change the result unless they are explicitly included.
When a term chart is shown, each point recalculates the same model for a different term. Change one assumption at a time and compare results using a consistent currency, return convention and time horizon.
Formula and calculation method
NOI=gross rent*(1-vacancy)-operating expenses. Cap rate=NOI/price. Cash flow=NOI-annual debt service.
Cash-on-cash return=cash flow/(down payment+closing costs). Sale equity=appreciated value-selling costs-remaining loan.
Scope and Limitations
- Assumes constant rent/expenses and fixed financing, with no tax effects or refinancing. Include maintenance, insurance and property tax in operating expenses. Appreciation is a scenario.
Reference Sources
Frequently asked questions
How does this calculator work?
NOI=gross rent*(1-vacancy)-operating expenses. Cap rate=NOI/price. Cash flow=NOI-annual debt service.
What assumptions should I check?
Assumes constant rent/expenses and fixed financing, with no tax effects or refinancing. Include maintenance, insurance and property tax in operating expenses. Appreciation is a scenario. Cash-on-cash return=cash flow/(down payment+closing costs). Sale equity=appreciated value-selling costs-remaining loan.
Can I save or print this calculation?
Use Copy link with inputs to reproduce the scenario, Download results for a text record, or Print. Where a schedule is shown, its CSV download includes every row.