Property Investment Calculator
Analyse rental property profitability, cash flow, and return on investment to make informed real estate investment decisions.
Property Purchase Details
£
£
25% of purchase price
£
Usually 1-3% of purchase price
£
Financing Details
%
years
Rental Income
£
%
Expected percentage of time property is vacant
%
Operating Expenses
£
£
£
Usually 1-2% of property value
£
Usually 5-10% of rental income
Analysis Parameters
%
years
Results will appear here
Enter your property investment details to see profitability analysis and cash flow projections.
Understanding Property Investment Analysis
💰 Key Metrics
- Cash Flow: Monthly income after all expenses
- Cash-on-Cash Return: Annual cash flow ÷ initial cash invested
- Cap Rate: Net operating income ÷ property value
- Total ROI: Total return including appreciation
🏠 Investment Considerations
- Location: Neighbourhood growth potential and rental demand
- Property condition: Age, maintenance requirements
- Market trends: Local rental rates and property values
- Financing: Interest rates and loan terms
📊 Cash Flow Analysis
- Positive cash flow: Property generates monthly profit
- Break-even: Income covers all expenses
- Negative cash flow: Monthly shortfall to cover
- Vacancy buffer: Account for rental gaps
⚠️ Risk Factors
- Market downturns affecting property values
- Extended vacancy periods
- Major repair and maintenance costs
- Interest rate changes affecting financing