Buy To Let Ten Year Return
Calculator
Results
- Total return
- $108,153.27
- Return on investment
- 144.204359%
- Cumulative cash flow
- $-5,188.69
- Net sale proceeds
- $188,341.96
- Cash invested
- $75,000.00
How the position develops over the projected years
- Home equity
- Cumulative cash flow
- Total return
Year-by-year property projection
| 1 | 257,500.00 | 73,594.17 | -2,216.97 | -2,216.97 | -8,772.79 |
| 2 | 265,225.00 | 85,116.09 | -1,868.97 | -4,085.94 | 725.65 |
| 3 | 273,181.75 | 97,083.93 | -1,510.53 | -5,596.47 | 11,023.83 |
| 4 | 281,377.20 | 109,516.73 | -1,141.34 | -6,737.80 | 22,151.38 |
| 5 | 289,818.52 | 122,434.41 | -761.07 | -7,498.87 | 34,139.17 |
| 6 | 298,513.07 | 135,857.83 | -369.39 | -7,868.26 | 47,019.31 |
| 7 | 307,468.47 | 149,808.84 | 34.04 | -7,834.22 | 60,825.25 |
| 8 | 316,692.52 | 164,310.30 | 449.57 | -7,384.65 | 75,591.80 |
| 9 | 326,193.30 | 179,386.17 | 877.56 | -6,507.09 | 91,355.21 |
| 10 | 335,979.09 | 195,061.54 | 1,318.40 | -5,188.69 | 108,153.27 |
Comparison
| Scenario | Total return | Cumulative cash flow |
|---|---|---|
| Doing nothing | 0.00 | 0.00 |
| Your scenario | 108,153.27 | -5,188.69 |
Formula
return = Σ cash_y + [V_n(1−s) − B_n] − (deposit + fees)= 108153.27
Note
This is a simplified projection model. It compounds the growth, cost and return rates you enter at a constant annual rate and amortizes mortgages on a standard fixed-rate annuity; real property markets, rents, interest rates, vacancy, maintenance and running costs move irregularly and can fall as well as rise. Taxes are applied only as the flat rate and allowance you enter: stamp duty and other transfer taxes are usually banded, capital gains relief, principal-residence exemptions, rental-income tax, depreciation and allowable expenses vary by country and by your circumstances and are not modelled here. Transaction, legal, letting and selling costs are taken as the percentages you supply. Baseline comparisons hold the alternative flat and ignore what else the money might have done. These results are general information, not investment, mortgage, tax or legal advice: consult a qualified professional before committing to a property decision.
More in Property projections
See all →Frequently asked questions
What components make up the total ten-year return here?+
It typically combines three sources: net rental cash flow accumulated over the period, equity built through mortgage paydown, and any capital appreciation in the property's value, all measured against your initial cash investment (down payment plus closing costs).
Why does leverage make such a big difference to the percentage return?+
Because you're financing most of the purchase price with a mortgage but the entire property's appreciation and rental income accrue to you, a given dollar of appreciation or income represents a much larger percentage return on your smaller cash investment than it would on an unleveraged, all-cash purchase.
Does the ten-year figure account for selling costs if I exit at year ten?+
Check what the calculator assumes — a realistic ten-year return should subtract selling costs like agent commissions and any capital gains tax, since these can take a meaningful bite out of the appreciation and equity gains that look good on paper before selling.
How sensitive is the return to the rental income assumption?+
Quite sensitive, since rental income compounds over ten years and also affects cash flow available to cover expenses without dipping into your pocket. A vacancy rate or rent growth assumption that's off by a percentage point or two can shift the ten-year total meaningfully.
Why might my actual return differ from this projection?+
The projection uses constant assumptions for rent growth, appreciation, and expenses, while actual outcomes vary year to year with local market conditions, interest rate changes if you have a variable mortgage, and unplanned repairs. Treat the output as an illustrative scenario, not a forecast.