Real Estate Calculator
Analyse a property purchase: costs, appreciation, equity build-up, and total return over your horizon.
Inputs
Net Gain at Sale
-$210,926
Annualized Return on Cash
10.91%
Total Return %
-41.98%
Net Sale Proceeds (Equity)
$291,489
Estimated Sale Price
$634,769
Property Appreciation
$184,769
Equity from Payments
$54,806
Total Cash Invested
$502,415
Cash at Closing
$103,500
Monthly Mortgage (P&I)
$2,275.44
Total Mortgage Paid
$273,053
Total Taxes Paid
$58,070
Total Insurance Paid
$15,000
Total Maintenance Paid
$52,791
Step by step
Initial cash out (down payment + closing costs)
$90,000 + $13,500
= $103,500
Estimated sale price after 10 years at 3.5% appreciation
$450,000 × (1 + 3.5%)^10
= $634,769
Mortgage balance at sale
= $305,194
Selling costs
$634,769 × 6%
= $38,086
Net sale proceeds (equity at exit)
$634,769 − $305,194 − $38,086
= $291,489
Total cash invested (purchase + mortgage + taxes + insurance + maintenance)
= $502,415
Net gain
$291,489 − $502,415
= -$210,926
Annualized return on cash invested
= 10.91%
How it works
This calculator analyses a residential property purchase as a complete financial transaction from purchase to sale. It accumulates all cash outflows — down payment, closing costs, mortgage payments, taxes, insurance and maintenance — and offsets them with the net proceeds at sale after paying off the remaining mortgage and selling costs. The annualized return is calculated on the initial cash invested (down payment + closing costs), reflecting the leveraged return from using a mortgage.
Formulas
Sale price (appreciation)
Sale Price = Purchase Price × (1 + appreciation rate)ⁿ
- V₀
- Purchase price
- g
- Annual appreciation rate
- n
- Holding period (years)
Annualized return (CAGR on equity vs. initial cash)
CAGR = (Equity / Initial Cash)^(1/n) − 1
Returns are projections based on user-supplied appreciation rates. Actual results depend on local market conditions, maintenance events and transaction timing. Not financial advice.
Frequently Asked Questions
Why is the annualized return calculated on the down payment rather than the full price?
Leverage is the key to real estate returns. You invest the down payment plus closing costs, but you control (and benefit from appreciation on) the full home value. The return on your actual cash invested — which is what matters for wealth building — is amplified by the mortgage.
Does this include rental income?
No. This is designed for owner-occupied analysis. For rental properties with monthly income, cap rate and NOI, use the Rental Property Calculator.
What appreciation rate should I use?
Nationally, US home prices have appreciated roughly 3–4% per year on average over long periods, roughly in line with inflation. Local markets vary enormously — from negative in declining areas to 8%+ in high-demand metros. Run multiple scenarios.
Why is maintenance included as a cost?
Home maintenance (roof, HVAC, appliances, painting) is a real and unavoidable ownership cost. The 1% per year rule is a commonly cited estimate; high-end or older homes may be closer to 2%. Omitting it overstates the financial case for homeownership.