Does this flat pay off?
Enter the numbers on the left and see on the right what you keep after the mortgage, utilities and tax. Nothing is sent anywhere; everything is calculated in your browser.
Flat and financing
Values in EUR
Mortgage 144,000 · repayment 687.48
Rent and utilities
Owner’s costs
Income tax
SK: rental income is tax-free up to €500 a year, the rest is taxed at 19%. Expenses can only be claimed in proportion to the taxable part of the income.
What you keep each month, after the mortgage and tax
-161.67
The flat doesn’t pay for itself; you top it up every month.
To break even you need rent of 980; you currently have 750.
Gross yield
4.71%
annual rent / investment
Net yield
3.33%
after operating costs
Cash-on-cash return
-4.13%
on 47,000 of your own money
Debt service coverage
0.77
banks want at least 1.20
Gross yield 4.71% against a mortgage rate of 4.00%.
Where the rent goes
- Rent after vacancy690.00
- Mortgage repayment4% over 30 years−687.48
- Service charge and building managementpaid by the owner, not the tenant−90.00
- Insurance−15.00
- Property tax−5.00
- Maintenance and repairs5% of annual rent−37.50
- Utilities shortfallutilities during empty months−12.00
- Income tax−4.69
- You keep-161.67
What if the interest rate or rent changes
monthly after tax| Rate / rent | 640 | 725 | 750 | 815 | 900 | 990 | 1,080 |
|---|---|---|---|---|---|---|---|
| 3.00% | -182 | -122 | -104 | -58 | +2 | +65 | +129 |
| 4.00% | -253 | -179 | -162 | -116 | -56 | +7 | +71 |
| 5.00% | -338 | -264 | -243 | -186 | -119 | -55 | +8 |
| 6.00% | -429 | -355 | -333 | -276 | -202 | -124 | -59 |
| 7.00% | -523 | -449 | -428 | -371 | -297 | -219 | -140 |
| 8.00% | -622 | -548 | -526 | -470 | -396 | -317 | -239 |
Rows are interest rates, columns are monthly rent. The range is set so you can see where the flat starts paying for itself. A green cell means you have something left each month.
How it looks in ten years
Rent grows, costs grow too, the loan gets repaid and at the end you sell. The sale price is set by the yield the next buyer wants, not by your wishes.
Annual return
8.84%
Internal rate of return. Includes the sale and the remaining loan.
Total profit
70,184
After deducting your own money and the remaining loan.
Sale price
249,212
Remaining loan
113,449
| Year | Rent | Costs | Loan payments | Cash flow | Cumulative |
|---|---|---|---|---|---|
| 1 | 8,280 | -1,914 | -8,250 | -1,913 | -1,913 |
| 2 | 8,528 | -1,991 | -8,250 | -1,746 | -3,659 |
| 3 | 8,784 | -2,070 | -8,250 | -1,575 | -5,234 |
| 4 | 9,048 | -2,153 | -8,250 | -1,400 | -6,633 |
| 5 | 9,319 | -2,239 | -8,250 | -1,220 | -7,854 |
| 6 | 9,599 | -2,329 | -8,250 | -1,036 | -8,890 |
| 7 | 9,887 | -2,422 | -8,250 | -848 | -9,738 |
| 8 | 10,183 | -2,519 | -8,250 | -655 | -10,392 |
| 9 | 10,489 | -2,619 | -8,250 | -457 | -10,849 |
| 10 | 10,804 | -2,724 | -8,250 | -254 | -11,102 |