Real Estate IRR & ROE Calculator

Model a rental property bought with a mortgage — returns, cash flow, and equity over your holding period.

Scenarios

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Country presetSwitching loads that country's default values, currency, and tax rules.

Key inputs

Purchase price

Down payment

Interest rate

Monthly rent

Appreciation / yr

Holding period

yrs

Advanced settings▾

Fine-tune financing, expenses, exit costs, and taxes. The preset's default values are used until you change them.

Purchase

Closing costs

Loan

Loan term

yrs

Income

Rent growth / yr

Vacancy

wks/yr

≈ 5.0% of rent · $1,680/yr lost

Operating expenses

Property tax (of value)

Insurance / yr

Maintenance (of value)

Management (of rent)

HOA / mo

Other / yr

Expense growth / yr

Exit assumptions

Selling costs

Taxes (after-tax returns)Model income, depreciation & sale taxes

Income tax rate

Capital-gains rate

Land value (non-deprec.)

Depreciation period

yrs

Results

IRR

9.1%

Levered, annualized

Avg ROE

-1.9%

Mean annual cash-on-equity

Equity multiple

2.58x

Total cash / invested

Cash-on-cash

-5.2%

Year 1

Cap rate

4.9%

Year 1 NOI / price

Monthly payment

$2,023

Principal & interest

Cash invested

$92,000

Down payment + closing

Loan amount

$320,000

Net sale proceeds

$259,102

After payoff & selling costs

Cash flow & cumulative cash flow

Property value, equity & loan balance

When to sell — capital efficiency over time

Reinvestment hurdle

As equity builds, the total return on that trapped equity (the green line) tends to fall. The peak-IRR year maximizes your annualized return; once the yearly total ROE drops below your reinvestment hurdle, your capital would work harder redeployed elsewhere. The two rose lines (right axis) net out the cash you fed in. Hover a legend item for its definition, or click it to hide/show that line.

Best year to sell (max IRR)

Year 15IRR 9.4% · 4.25x

Wealth-max exit (reinvest @ 8%)

Year 27$1.2M by yr 30

Capital-efficient hold (Total ROE ≥ 8%)

Through year 23then redeploy

Hold vs. sell & reinvest — wealth at year 30

Each bar is your total wealth at year 30 if you sell in that year and reinvest the net proceeds and interim cash flows at the 8% hurdle. The tallest bar (Year 27) is the wealth-maximizing exit — unlike peak IRR, it accounts for what you can actually earn on redeployed capital.

Year-by-year breakdown

Year	EGI	Op. exp	NOI	Interest	Principal	Cash flow	Value	Loan bal.	Equity	ROE
1	$31,920	$12,454	$19,466	$20,695	$3,577	-$4,805	$414,000	$316,423	$97,577	-6.0%
2	$32,878	$12,862	$20,016	$20,455	$3,816	-$4,256	$428,490	$312,607	$115,883	-4.4%
3	$33,864	$13,283	$20,581	$20,200	$4,072	-$3,691	$443,487	$308,535	$134,952	-3.2%
4	$34,880	$13,719	$21,161	$19,927	$4,345	-$3,111	$459,009	$304,191	$154,819	-2.3%
5	$35,926	$14,169	$21,757	$19,636	$4,636	-$2,514	$475,075	$299,555	$175,519	-1.6%
6	$37,004	$14,634	$22,370	$19,325	$4,946	-$1,901	$491,702	$294,609	$197,093	-1.1%
7	$38,114	$15,114	$23,000	$18,994	$5,277	-$1,272	$508,912	$289,332	$219,580	-0.6%
8	$39,258	$15,611	$23,647	$18,641	$5,631	-$625	$526,724	$283,701	$243,022	-0.3%
9	$40,435	$16,124	$24,312	$18,264	$6,008	$40	$545,159	$277,694	$267,465	0.0%
10	$41,648	$16,654	$24,995	$17,861	$6,410	$723	$564,240	$271,284	$292,956	0.3%