🇺🇸 US Real Estate Investing

Investment Property Calculator

See your total year-1 return — not just cash flow. Combines all four return sources: cash flow, principal paydown, appreciation, and depreciation tax benefit. Includes cap rate and cash-on-cash for context.

The four return sources

  1. Cash flow — NOI minus debt service
  2. Principal paydown — your tenant is paying off your mortgage; that equity is yours
  3. Appreciation — long-run US average is ~3-4% nominal, varies wildly by market
  4. Depreciation tax benefit — building value (typically 80% of purchase) divided by 27.5 years × your marginal rate

Cash-on-cash alone undersells the true return. A 4% CoC property can produce 18-25% total return when you stack all four sources. That's why sophisticated investors don't panic over thin year-1 cash flow if the other three legs are strong.

Disclaimer: Year-1 estimate. Appreciation is uncertain. Tax benefit assumes you can use passive losses against rental income. Not financial advice.