Real Estate Calculator

About Real Estate

Real estate investment involves purchasing property to generate income or appreciate in value. This calculator helps evaluate potential returns from rental income and property appreciation while accounting for mortgage costs and expenses.

How It’s Calculated

Mortgage payment = P * [r(1+r)^n] / [(1+r)^n - 1], Cash flow = Rent - Mortgage - Expenses, Property value = Initial * (1 + appreciation)^t, Equity = Property value - Loan balance, ROI = (Total profit / Total investment) / years * 100

Key Insights

• •Leverage through mortgage amplifies returns but increases risk
• •Cash flow is crucial for sustainability
• •Appreciation drives long-term wealth building
• •Higher down payment reduces interest costs