Analyse a property purchase end to end: costs, cash flow, appreciation and total return.
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.
Sale price (appreciation)
Sale Price = Purchase Price × (1 + appreciation rate)ⁿ
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.
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.
No. This is designed for owner-occupied analysis. For rental properties with monthly income, cap rate and NOI, use the Rental Property Calculator.
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.
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.