Property investment analysis
Describe the purchase, the renting and the sale. The result keeps gross, net and tax apart.
Result
33,500.00Gain after tax
- Gross yield
- 6%
- Net yield (before loan)
- 5%
- Money left per year (year 1)
- 5,000.00
- Your own cash put in
- 100,000.00
- Left from the sale after the loan
- 120,000.00
- Gain before tax
- 45,000.00
- Tax on rent
- 7,500.00
- Tax on the gain
- 4,000.00
Inputs
- Purchase price
- 100000
- Buying costs
- 0
- Sale price
- 120000
- Selling costs
- 0
- Years held
- 5
- Rent per month
- 500
- Costs per year
- 1000
- Amount borrowed (optional)
- 0
- Tax on rent (optional)
- 30
- Tax on the gain (optional)
- 20
How it is calculated
Gross yield = rent for one year ÷ purchase price.
Result
Gain after tax
- Gross yield
- 6%
- Net yield (before loan)
- 5%
- Money left per year (year 1)
- 5,000.00
How it is calculated
- Gross yield = rent for one year ÷ purchase price.
- Net yield = (rent − costs) ÷ (price + buying costs).
- Gain before tax = rent − costs − loan payments + (sale − selling costs − loan left) − own cash.
- Tax: your rate × (rent − costs − interest) and your rate × capital gain.
Example
Buy at 100,000 with no loan, rent 500 a month, costs 1,000 a year, sell at 120,000 after 5 years: 25,000 net rent + 20,000 gain = 45,000 before tax. With 30% tax on rent and 20% on the gain: 33,500 after tax.
Good to know
- Rent, costs and prices stay the same every year.
- Tax is a simple rate: real tax rules depend on the country and your situation.
- This is not investment advice.
Frequently asked questions
What is this tool used for?
Describe the purchase, the renting and the sale. The result keeps gross, net and tax apart.
How is the result calculated?
Gross yield = rent for one year ÷ purchase price.
What should I check before using the result?
Rent, costs and prices stay the same every year.