Analyze the Potential Profit or Loss of your Real Estate Investment      
         
Enter your numbers in the yellow background boxes only.  
Some of the columns may show ###### when dealing with a high value property (over $1m.) Just divide your entries by 1,000, making the results easier to read.
 
  Purchase Price:      
  Down Payment:      
  Interest Rate on Loan:     % p.a.  
  Term of Loan:     yrs.  
  Improvement Ratio:     % age of building to total property value  
  No. Yrs. of Depreciation:     yrs. Straightline for residential. 39.5 years for commercial.  
  Number of units and rent each        
  1 bed room   If single family home just  
  2 bedroom   put 0s in fields as appropriate  
  3 bedroom      
  4 bedroom      
  Scheduled Annual Gross Income:    
  Vacancy/Collection losses:   %  
  (Annual Operating Expenses)   ---------  
  Property taxes :      
  Insurance:      
  Flood insurance        
  Management:     % of income  
  Repairs/Maintenance:     % of income  
  Electricity:      
  Gas:        
  Oil:        
  Water:        
  Trash Collection:      
  Advertising:      
  Telephone:      
  Other:       Replace "Other"  
  Other:       with name of Other  
  Other:       Expenses  
  Annual Increase of Income:   % p.a.  
  Annual Increase of Expenses:   % p.a.  
  Annual Increase in Property Value:   % p.a.  
  Investor's Tax Bracket:     %  
  Capital Gain Tax Rate:     % This varies depending on the tax payer.  
  CGT Rate on Recaptured Depreciation   %  
  Immediate Capital Improvements:    
  Approx. Buying Costs:     % of total  
  Approx. Sales Costs:     % of total  
  Value of Property After Capital. Imp.   (Best estimate)  
   
 
PURCHASE SUMMARY   LOAN   DEPRECIATION    
 
Price   Interest %   Land  
Dn. Pymt.   No. Yrs.   Improvement  
Loan Amt.   Mo. P & I   No. Yrs.    
Buy Costs   Yr. P & I   Yr. Depr.  
Cap Impr.    
Val of Prop  
     
    Yr.1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10
ANNUAL OPERATING INCOME                    
Expected Gross Income  
less Vacancy/Collection losses
EFFECTIVE GROSS INCOME (EGI)
                   
ANNUAL OPERATING EXPENSES                    
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL OPERATING EXPENSES
                   
NET OPERATING INCOME
     
CAP RATE Per Year (NOI/Initial Invest)
   
CASH FLOW (BEFORE TAXES)  
Net Operating Income  
-Yrly. P & I  
CASH FLOW (BEFORE TAXES)
   
TAX BENEFIT    
Net Operating Income  
-Annual Interest  
-Annual Depreciation  
Taxable Income  
INCOME TAX Due  
Note that when the property loses money you get a reduction in your income tax for the loss. When it makes money you will pay tax on your profit.
If the tax due is negative, as often happens in first few years, you get a tax credit. This is subject to passive loss rules, see your tax advisor.
       
ESTIMATED SALE PROCEEDS (AFTER EXPENSES & TAXES)
   
  Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Yr. 6 Yr. 7 Yr. 8 Yr. 9 Yr. 10
ADJUSTED COST BASIS                    
Original Basis  
+ Capital Improvements`  
+ Sales Costs    
- Accum. Depreciation  
= ADJUSTED COST BASIS
   
True CAPITAL GAIN    
Sales Price  
Non adjusted cost  
True Gain or loss  
   
CAPITAL GAIN for tax purposes    
Sales Price  
- Adjusted Cost Basis  
CAPITAL GAIN (tax purposes)
   
LONG TERM CAPITAL GAIN TAX (must hold asset for more than 1 year)  
Capital Gain for tax purposes
= Tax on Capital Gain  
     
EST. NET SALE PROCEEDS (after tax)    
Sales Price  
- Sales Costs  
- Ending Loan Balance  
= Proceeds Before Taxes  
- Capital Gain Tax  
= EST NET SALE PROCEEDS A/T
Cash invested by owner  
Net cash to owner on sale (less cash inv)
  (In later years one should allow for loss of interest on the cash one invested)
Net Operating Income less Interest for yr.
Income tax for the year  
(if positive this is a tax credit)  
NOI -Interest + Tax credit (or - tax paid) for yr.
Cumulative after tax income (excd. Depr)
(This assumes you have other taxable income to set any tax credits against)  
     
If you hold till the end of the 10th yr then sell, you have a capital return on your investment, after tax:  
and have also earned a total after tax income of:      
Thus on an original cash investment of: you have an approx. annualized return of  
           
 
This report is based on certain assumptions.The projections are estimates only. Anyone using or relying on this report is advised to seek  
competent legal, financial, and/or tax advice.  
 
This calculator is copyright of Mortgage-Investments.com