Rental Property Calculator

How the result is calculated

1. The mortgage is the purchase price minus your deposit, repaid month by month with an annuity; in the advanced mode the rate changes after the fixed period.
2. The rent is collected every month, lowered by the empty months and raised once a year by the rent growth. The running costs rise once a year by the cost growth; the management fee is a share of the rent collected.
3. The tax is the rate entered times the yearly profit from letting (rent minus costs and mortgage interest) when it is positive; it is paid at the end of each year.
4. The property's value grows smoothly by the price growth. The result of a sale in any year is the value minus the selling costs and the remaining mortgage, plus all the cash flow so far, minus the money you put in upfront.
5. The yearly return is the internal rate of return of your own money: the upfront payment, each year's cash flow and the proceeds of the sale.

Assumptions and limits

• All amounts are nominal, not adjusted for inflation.
• Taxes are one effective rate on the rental profit; depreciation, allowances, carried-forward losses, the tax on the sale and subsidies are not included.
• Prices and rents grow evenly; real markets go up and down, and a property can be worth less when you need to sell.
• The history of a place is the average of an official index for the whole city or region; a particular property, street or kind of flat can differ a lot.

The price, rent and costs are round examples, not statistics. The growth starts at the central bank's inflation target; the starting mortgage rate comes from official statistics of new loans in the country.

Data sources and the period they hold for

Every number a calculator starts with or computes from comes from one of the sources below. Series names are given as the publisher names them. Each row shows the period the data refer to and, where we record it, the day we downloaded them. Official data can be months old when they are published, so check the current figure before you decide.

Official

Published by a central bank, a statistical office, the European Union or another public body.

Research or industry data

A dataset of a university, an index provider, an industry association or a data vendor.

Reported

A figure of an official body that we know only from the press and did not check in the primary source. Treat it as approximate.

Example

A round number of ours, not a statistic. Replace it with your own.