Real Estate Returns Calculator
Property price going up 7% a year sounds like a simple return, but it isn’t your actual return once you factor in the down payment, the EMI, the rent you collect, and the costs of buying and selling. This calculator runs the full cash flow, leveraged purchase, rent income, loan payments, and eventual sale, and compresses it into a single annualised IRR.
What is a Real Estate Returns Calculator?
A real estate returns calculator models a leveraged property purchase as a full year-by-year cash flow: the initial down payment and buying costs, annual rent received minus maintenance costs and EMI paid, and the net proceeds from an eventual sale. It then solves for the internal rate of return, the single annualised number that makes all these cash flows net to zero.
Real Estate Is Rarely Just One Line in a Family's Portfolio
This calculator evaluates one property purchase in isolation. In practice, real estate is often the single largest asset a family holds, frequently financed with a loan that runs for decades, and it needs to be weighed against the family’s other investments and overall diversification, not analysed as a standalone decision.
How WealthNest.AI Helps Beyond This Calculator
WealthNest.AI tracks your family’s real estate holdings alongside every other asset class, equities, gold, debt, and more, so you can see how a property purchase like this one fits into your household’s overall diversification, not just its own return.
See this alongside every other account your family holds, all in one place. Download the WealthNest.AI app to get started.
Frequently Asked Questions
Because you put down a fraction of the property price (typically 20%) and the bank finances the rest, your actual cash invested is much smaller than the property price, which changes your annualised return compared to buying outright.
Using standard bank amortisation, where the monthly rate is the annual rate divided by 12 (not the effective monthly rate). The EMI stays constant, with early installments weighted toward interest and later ones toward principal.
IRR is the single discount rate at which the entire cash flow, your initial outlay, annual rent minus costs and EMI, and the final sale proceeds, nets to zero. It's solved numerically using the Newton-Raphson method.
No. The page's own disclaimer notes it ignores rental voids, tax on rent, loan prepayment, and location-specific liquidity, and that this is not investment advice.
Yes. WealthNest.AI aggregates real estate as one of the asset classes in your family's dashboard, alongside equities, gold, debt, and other holdings
