Is that rental property actually a good investment? Calculate your total return including rental yield, appreciation, tax benefits, maintenance, and financing costs.
Property purchase price
$
Down payment $60,000
Mortgage rate 6.5%
Mortgage term
years
Monthly rent
$
Annual appreciation 3%
Property tax 1.2%
Annual maintenance 1%
Vacancy rate 5%
Holding period
years
? Year-by-year projection
Year
Property value
Equity
Annual net rent
Cumulative ROI
Methodology ROI = (Total equity + Cumulative net rent - Down payment) / Down payment. Net rent = Monthly rent × 12 × (1 - vacancy) - property tax - maintenance - insurance (estimated 0.5%). Mortgage payment calculated with standard amortization. Appreciation compounded annually. This is a simplified model for educational purposes only.