Real Estate Calculator

Analyse a property purchase end to end: costs, cash flow, appreciation and total return.

About Real Estate Calculator

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

Worked example

With the default values below, Real Estate Calculator returns Net Gain at Sale of -$210,926. Change any input above and every figure here is recalculated in your browser.

Inputs used

Purchase Priceaccepts 10,000–20,000,000 $: 450,000 $
Down Paymentaccepts 0–100 %: 20 %
Buying Closing Costsaccepts 0–10 % of purchase price: 3 % of purchase price
Mortgage Rateaccepts 0–20 %: 6.5 %
Loan Termaccepts 5–40 years: 30 years
Holding Periodaccepts 1–50 years: 10 years
Annual Appreciation Rateaccepts -10–20 %: 3.5 %
Annual Property Taxaccepts 0–5 % of home value: 1.1 % of home value
Annual Homeowner's Insuranceaccepts 0–50,000 $: 1,500 $
Annual Maintenanceaccepts 0–5 % of home value: 1 % of home value
Selling Costs at Exitaccepts 0–15 % of sale price: 6 % of sale price

Results

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

1Initial cash out (down payment + closing costs)= $103,500
2Estimated sale price after 10 years at 3.5% appreciation= $634,769
3Mortgage balance at sale= $305,194
4Selling costs= $38,086
5Net sale proceeds (equity at exit)= $291,489
6Total cash invested (purchase + mortgage + taxes + insurance + maintenance)= $502,415
7Net gain= -$210,926
8Annualized return on cash invested= 10.91%

Assumptions and limits

The result is derived only from the 11 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Returns are projections based on user-supplied appreciation rates. Actual results depend on local market conditions, maintenance events and transaction timing. Not financial advice.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.