See what a rental property earns after the mortgage, what return you get on the cash you put in, and how equity could build over the years.
These are example figures. Replace them with your own numbers — everything updates instantly.
Assuming 2.0 % annual appreciation, constant rent and expenses, and a fixed interest rate.
| Year | Property value | Mortgage balance | Equity | Cumulative cash flow |
|---|---|---|---|---|
| 1 | €255,000.00 | €170,540.82 | €84,459.18 | €2,946.91 |
| 5 | €276,020.20 | €151,060.71 | €124,959.49 | €14,734.53 |
| 10 | €304,748.60 | €122,550.38 | €182,198.22 | €29,469.05 |
The projection applies your assumptions mechanically. It does not forecast the market, rent changes, interest rate changes or taxes.
Create a free Llaverio account to keep your calculations, compare properties over time and turn a good result into a property in your portfolio.
Add the property with its purchase price and mortgage, and Llaverio keeps cash flow and equity up to date as rent comes in.
Create free accountA rental property is two businesses at once: an operating business (rent in, expenses out) and a financing arrangement (the mortgage). This calculator separates them so you can see where the money goes.
Net operating income is what the property earns before financing. Cash flow is what is left after the mortgage. Cash-on-cash return relates that cash flow to the money you actually put in.
Cash-on-cash = annual cash flow ÷ cash invested × 100
Cash invested is the down payment plus purchase costs and renovation — the money that leaves your account. Because a mortgage lets you control a large asset with a smaller amount of cash, cash-on-cash can be higher than the property's net yield. It can also be negative if the mortgage payment is larger than the net operating income.
Each year two things can build your equity: the mortgage balance falls as you repay principal, and the property's value may change. The projection applies the appreciation rate you enter every year and subtracts the remaining mortgage balance.
The appreciation figure is labelled as an assumption on purpose. Nobody can predict prices. Try 0% to see the investment on rent alone, and a modest figure to see how leverage amplifies changes in value.
Income tax on the rent, capital gains tax on sale, selling costs, rent increases, interest rate changes on a variable mortgage, and large one-off repairs. All of these matter and all of them depend on your situation, so they are left out rather than guessed.
Many investors look for a cash-on-cash return above their mortgage interest rate, and often 6–8% or more for a property that needs active management. A low or negative figure means the property depends on future price growth to make sense, which is a riskier bet.
The mortgage payment plus expenses exceed the rent after vacancy. Common causes are a small down payment, a high interest rate, a short term, or expenses that were underestimated. Try a larger down payment or a longer term to see the effect.
Yes. Taxes, notary and agency fees are cash you pay and never get back, so they belong in the denominator of the cash-on-cash return. The calculator does this automatically.
As a standard fixed-rate, constant-payment (annuity) mortgage: the same payment every month for the whole term, with the interest share falling and the principal share rising over time. The mortgage calculator shows the full schedule.
No. Rent and expenses are held constant to keep the result transparent. In practice both tend to rise with inflation, which usually improves cash flow over time — but that is another assumption, so it is left to you.
Yes — use the property comparison tool to see up to five properties side by side with the same metrics.
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Start freeThis calculator is for information only and is not financial, tax or legal advice. Results depend entirely on the figures you enter and on assumptions that may not hold. Check with a qualified adviser before making an investment decision.