Prop Calculator

The Property Investment Calculator helps users evaluate potential real estate investments by calculating loan amounts, monthly mortgage payments, operating income, cash flow, and returns based on input parameters such as property price, down payment, interest rate, rent, and expenses.

Use Our Prop Calculator

How to Use the Property Investment Calculator

This Property Investment Calculator is designed to help you analyze the potential returns and cash flow from a property investment. Follow these steps to ensure accurate calculations and insightful results.

Step 1: Enter Property Details

  1. Property Purchase Price: Enter the purchase price of the property. This is a required field and should be between $1,000 and $100,000,000.
  2. Down Payment (%): Provide the percentage of the property’s price that you will pay upfront as a down payment. This field accepts values between 1% and 100% with a step of 0.1%.
  3. Mortgage Interest Rate (%): Input the annual interest rate for the mortgage. The valid range is from 0.1% to 30%, with increments of 0.1%.
  4. Loan Term (Years): Specify the number of years over which you plan to repay the mortgage. This should be between 1 and 40 years.

Step 2: Estimate Rental Income

  1. Expected Monthly Rent: Enter the amount you anticipate to receive as monthly rent from the property.
  2. Expected Vacancy Rate (%): Provide an estimated vacancy rate for the property, which should range from 0% to 100%, with a step of 0.1%.

Step 3: Define Property Characteristics

  1. Property Type: Select the type of property you are investing in. Options include Single Family Home, Multi Family Home, and Apartment Building.
  2. Annual Property Tax Rate (%): Input the annual property tax rate as a percentage. This field supports values between 0% and 100%, with increments of 0.01%.

Step 4: Review Results

After you’ve entered all necessary information, the calculator will compute several important financial metrics:

  1. Loan Amount: This will show how much you need to borrow, calculated as the property price minus the down payment.
  2. Monthly Mortgage Payment: Displays the monthly payment amount based on the loan amount, interest rate, and loan term.
  3. Annual Effective Gross Income: Calculates your annual income from the property after adjusting for vacancies.
  4. Annual Property Tax: Reflects the amount payable annually in property taxes.
  5. Annual Maintenance Costs: Estimates yearly maintenance expenses based on the property type.
  6. Net Operating Income: Determines your income after accounting for taxes and maintenance costs.
  7. Annual Cash Flow: Reveals the cash flow left after paying the mortgage.
  8. Capitalization Rate (Cap Rate): Represents the property’s return rate, a crucial indicator of property profitability.
  9. Cash on Cash Return: Shows the rate of return on the cash you’ve invested, helping evaluate the efficiency of your investment.

Utilizing this calculator can provide detailed insights into the financial health of your property investment, assisting in more informed decision-making.