Investment Property Calculator

A guide to the possible financial outcomes of buying and renting out an investment property.

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Loan Amount $171,000

Monthly Payment $791

  Year 1 Year 2 Year 3 Year 4 Year 5
Rental Income $15,000 $15,450 $15,914 $16,391 $16,883
 Total Expenses $14,088 $14,180 $14,274 $14,369 $14,466
Insurance $237 $242 $247 $252 $257
Taxes $2,451 $2,500 $2,550 $2,601 $2,653
Monthly Expenses/Fees $1,896 $1,934 $1,973 $2,012 $2,052
Total Payments $9,504 $9,504 $9,504 $9,504 $9,504
Cash Flow $912 $1,270 $1,640 $2,022 $2,417
  Tax Saved** $605 $471 $333 $190 $41
Interest Expenses $6,359 $6,239 $6,114 $5,985 $5,851
+Depreciation* $6,218 $6,218 $6,218 $6,218 $6,218
+Ins, Tax, other expenses * $4,584 $4,676 $4,770 $4,865 $4,962
-Rental Income $15,000 $15,450 $15,914 $16,391 $16,883
Total Tax Deduction $2,161 $1,683 $1,188 $677 $148
 Yearly addition to Net Worth $12,261 $12,909 $13,582 $14,279 $15,001
After Tax Cash Flow $1,517 $1,741 $1,973 $2,212 $2,458
Principle Paid(est) $3,144 $3,264 $3,389 $3,518 $3,652
Property Value $197,600 $205,504 $213,724 $222,273 $231,164

* 27.5 yr straight line depreciation, deduction may be limited with high gross income.  Depreciation is based on the value of the home without the land.   In this calculation we are allocating 10% of the purchase price to the land and the remainder to the residence.
** 2001 Federal Filing Status Single  (most conservative tax rate)  Keep in mind that your tax deduction may also be limited with an adjusted gross income over $100,000.  See your tax advisor for details.