Investment Property Calculator
Analyze investment properties with detailed cash flow, ROI, and leverage calculations. Determine if a property is worth investing in with our comprehensive scoring system.
Property Details
Total price you'll pay for the property
Monthly rental income you expect to receive
Percentage of purchase price paid upfront (can be 0)
Financing & Costs
Annual interest rate on your mortgage loan
Monthly Expenses & Management
Percentage of time property is empty (5% = 18 days/year)
Annual property value appreciation rate
Long-term Wealth Analysis
| Year | Loan Paid | Loan Balance | Property Value | Total Equity | Initial Investment | Real Estate Value | S&P 500 Alternative* | Winner |
|---|---|---|---|---|---|---|---|---|
| 5 | CA$0 | CA$0 | CA$347,782 | CA$347,782 | CA$0 | CA$347,782 | CA$0 | 🏠 +CA$347,782 |
| 10 | CA$0 | CA$0 | CA$403,175 | CA$403,175 | CA$0 | CA$403,175 | CA$0 | 🏠 +CA$403,175 |
| 15 | CA$0 | CA$0 | CA$467,390 | CA$467,390 | CA$0 | CA$467,390 | CA$0 | 🏠 +CA$467,390 |
| 20 | CA$0 | CA$0 | CA$541,833 | CA$541,833 | CA$0 | CA$541,833 | CA$0 | 🏠 +CA$541,833 |
| 25 | CA$0 | CA$0 | CA$628,133 | CA$628,133 | CA$0 | CA$628,133 | CA$0 | 🏠 +CA$628,133 |
| 30 | CA$0 | CA$0 | CA$728,179 | CA$728,179 | CA$0 | CA$728,179 | CA$0 | 🏠 +CA$728,179 |
*S&P 500 Alternative: Initial investment + negative cash flows invested in S&P 500 at 7% annual return.
Real Estate Value: Property equity (property value minus remaining loan balance).
Comparison: What if you invested your CA$0 in S&P 500 instead + any monthly losses.
Winner: 🏠 = Real Estate wins, 📈 = S&P 500 wins, with difference amount.
💡 Key Insights:
• Your property generates positive cash flow, making it easier to beat S&P 500 returns.
• Real estate leverage amplifies your returns when property appreciates.
• Consider diversifying some profits into index funds for balanced portfolio.
Investment Analysis
Initial Investment
Monthly Cash Flow
Cash-on-Cash Return
Leveraged ROI
Cap Rate
Break-even Period
Investment Recommendations
Investment Criteria
- • Cash-on-Cash Return > 6%
- • Cap Rate > 4%
- • Positive monthly cash flow
- • Break-even < 10 years
- • Total ROI > 10% annually
Key Definitions
- • Cap Rate: Net Operating Income ÷ Purchase Price
- • Cash-on-Cash: Annual Cash Flow ÷ Initial Investment
- • Leveraged ROI: Total returns including appreciation and leverage
- • NOI: Net Operating Income (rent minus operating expenses)
⚠️ DISCLAIMER: This calculator is for educational purposes only and should not be considered financial advice. The calculations provided may contain errors or may not reflect all costs, taxes, or market conditions. Always consult with qualified financial advisors, real estate professionals, and tax experts before making investment decisions. Past performance does not guarantee future results. Real estate investments carry risks including market volatility, liquidity constraints, and potential losses.