AngularJS Loan Calculator Example
enkode.com no longer supports Internet Explorer 9 or earlier. Please upgrade your browser.
Rental Property Monthly ROI
per month
Buying is better, even if you could rent for free.
Your estimated monthly return on investment is...
Enjoy the property as it is not profitable.
Home Costs after
Rental Return after
How to Read the Charts Charts that are relatively flat indicate
factors that are not particularly important to the outcome. Conversely, the factors that have steep
slopes have a large impact.
Purchase Price
A very important factor, but not the only one. Our ROI estimate will improve as you enter more details
below.
How Long Do You Plan to Own?
Holding your property longer allows for better returns as the upfront fees are spread out over many years,
rents go up, and property values increase.
What Are Your Property Management Details?
A great property manager is the key to success for marketing, maintenance, and managing renters.
ROI
Prop. Mgmt. Rate
?
Property Management Rate based off of Rental Income.
per month
Prop. Mgmt. Fee
?
Monthly fee charged by property management company
Occupancy Rate
?
The percentage of days in a year that the rental is occupied or
rented.
Daily Rental Rate
?
The average daily rental rate.
Monthly Gross:
What Are Your Mortgage Details?
In addition to the interest rate and down payment, the calculator takes into account the
mortgage-interest
tax deduction.
ROI
Mortgage rate
?
For a fixed-rate loan.
per month
Down payment
Length of mortgage
?
For a fixed-rate loan.
What Does the Future Hold?
How much home prices, rents and stock prices change can have a large impact on your outcome.
Unfortunately, these are some of the hardest things to predict. If you choose to rent instead of buying,
the calculator assumes that you’ll spend your would-be down payment on stocks or another investment.
ROI
Home price growth rate
Rent growth rate
Investment return rate
?
Annual rate of return on money that can be invested or saved.
Inflation rate
?
Estimate of the future annual inflation rate.
Taxes
Property taxes and mortgage-interest costs are significant but also deductible. The higher your marginal
tax rate is, the bigger the deduction.
ROI
Property tax rate
?
Amount you will pay each year, expressed as a percentage of the
home value.
for first year
Marginal tax rate
?
Effective tax rate, including federal, state and local taxes.
Closing Costs
You’ll have to pay various fees when you buy your investment property, as well as when you sell it.
ROI
Costs of buying home
?
Closing costs when the property is purchased, expressed as a
percentage of the home price.
Costs of selling home
?
Closing costs when the property is sold, expressed as a
percentage of
the home price.
Additional Renting Costs
These are the costs on top of rent, such as the fee you pay to a broker and the opportunity cost on your
security deposit. But these expenses typically have a negligible impact.
ROI
Security deposit
?
The number of months of rent that the landlord will keep as a
security deposit.
Broker’s fee
?
Some rental brokers charge a fee, expressed here as a percentage of the annual rent.
Renter’s insurance
?
As a percentage of the annual rent.
first year
Maintenance and Fees
Owning a home comes with a variety of expenses that renters do not directly pay.
ROI
Maintenance/renovation
?
The annual amount you will spend for maintaining or repairing
your home, as well as for renovations. Enter as a percentage of your purchase price. The calculator
will adjust this amount for subsequent years based on the inflation rate.
first year
Homeowner’s insurance
?
The amount you will pay each year for homeowner’s insurance.
Enter as a percentage of the home’s value.
first year
Monthly utilities
?
Portion of utilities, in dollars per month, that a landlord would
cover in the rental of a similar home.
Monthly HOA fees
?
The monthly condo, association or other community-living fees.
HOA fees deduction
?
Percentage of the monthly HOA / “common fees” that is tax deductible.
Methodology
The calculator keeps a running tally of the most common expenses of owning and property management fees. The calculator assumes that the profit you would have made would be taxed as long-term capital gains and adjusts the bottom line accordingly. The calculator tabulates property management costs costs for all parts of the buying and renting situations. All figures are in current dollars..
Buying
Initial costs are the costs you incur when you go to the closing for the home you are purchasing. This includes the down payment and other fees.
Recurring costs are expenses you will have to pay monthly or yearly in owning your home. These include mortgage payments, condo fees (or other community living fees), maintenance and renovation costs, property taxes and homeowners insurance. Property taxes, the interest part of the mortgage payment and, in some cases, a portion of the common charges are tax deductible. The resulting tax savings is accounted for in each items totals. The mortgage payment amount increases each year for the term of the loan because the tax credit shrinks each year as the interest portion of the payments becomes smaller..
Net proceeds is the amount of money you receive from the sale of your home minus the closing costs, which includes the brokers commission and other fees, the remaining principal balance that you pay to your mortgage bank and any tax you have to pay on profit that exceeds your capital gains exclusion. If your total is positive, it means you have done very well: You made enough of a profit that it covered not only the cost of your home, but also all of your recurring expenses.
Rental Opportunity
Gross Rental Income is the amount of money you will receive from the estimated occupancy rate multiplied by the daily rental rate compounded yearly with the rent growth rate.
Property Management Fees are the expenses you will have to pay to market your home, maintain it, and manage renters.
Grand Total
Grand Total is the sum of the net income from selling the property plus then net income from renting it out over the life of the investment.
cf82b778-5466-4b62-acba-23149e962297|2|5.0|96533e0d-f2a4-44aa-b02e-d90bfc09eb89