Enter the property details to calculate first-year cashflow, returns and a 10-year projection. All values can be changed.
Standard for good cities and stable locations.
Purchase price divided by annual base rent. Shows how many years of base rent equal the purchase price.
Solid in sought-after regions, typical for the outskirts of top metros.
Annual base rent divided by the purchase price, multiplied by 100%.
An initial guide before costs, financing and tax. Parking, furnishing or commercial income only counts if included in the rent you enter. Check the cashflow below to see whether the property covers its costs.
All four figures are monthly averages over 10 years: with and without repayment, before and after tax. Positive means a surplus; negative means an additional payment. Repayment reduces your debt. First-year figures are shown separately below.
With repaymentRent minus interest, principal repayment and non-recoverable costs. Repayment reduces your debt.
Without repaymentRent minus interest and non-recoverable costs.
Taxable resultNet base rent plus reserve contributions, less interest and depreciation. Mortgage registration costs are deducted once in year 1. Reserve contributions are not yet deductible.
Tax effectThe taxable result with its sign reversed, multiplied by your marginal tax rate.
After taxCashflow including the assumed tax refund or additional payment.
Total return on equityTotal growth over 10 years relative to your initial own capital invested: repayment, value changes and after-tax cashflow. For example, 126% means an additional €126 for every €100 invested, or €226 of final wealth. This covers the full period, not one year.
Annual rate of return on your capital (IRR)Return expressed as an annual rate, accounting for the amount and timing of all money invested or received, including additional payments and the final property value. Compound-interest example: €100 at 10% a year becomes €110 after year 1 and €121 after year 2. Total return therefore cannot simply be divided by the number of years. IRR helps compare annual rates; it does not give property the same risk, liquidity or guarantees as a deposit or fund. Assumes a sale at the end of the selected period without selling costs. Private capital gains may be tax-free after more than ten years; actual contract dates and eligibility matter.
What renting yields per yearAverage annual after-tax cashflow without repayment relative to the initial capital invested. For example, €2,000 a year on €40,000 invested is 5%. Excludes appreciation and repayment; it is a separate view of ongoing returns and should not be added to IRR.
Wealth growthTotal wealth minus capital invested.
Gross rental yield in year 10Annual base rent in the final projection year relative to the original purchase price.
Total depreciationDepreciation over 10 years, capped at 100% of each depreciable base.
Total tax effectRefunds or additional tax payments during 10 years of letting. The tax effect of construction interest before letting is included separately.
Total investmentPurchase price, acquisition costs and renovation. Construction interest after tax adds to capital invested.
The green area shows the rising property value and the brown line the falling debt. The bars show equity tied up in the property. The chart uses the selected value, rent and cost assumptions.
Annual net base rent, remaining debt, property value, value minus debt and total wealth including accumulated after-tax cashflow with repayment. Final total wealth matches the result above. Depreciation and tax are annual amounts.
Scroll the table sideways to see all columns.
| Year | Net rent | Remaining debt | Value | Value − debt | Total wealth | AfA | Tax |
|---|---|---|---|---|---|---|---|
| 1 | 7 920 € | 176 265 € | 190 000 € | 13 735 € | 13 483 € | 4 385 € | 1 673 € |
| 2 | 7 906 € | 173 419 € | 195 700 € | 22 281 € | 21 362 € | 4 385 € | 1 272 € |
| 3 | 7 891 € | 170 457 € | 201 571 € | 31 114 € | 29 469 € | 4 385 € | 1 228 € |
| 4 | 8 295 € | 167 374 € | 207 618 € | 40 244 € | 38 064 € | 4 385 € | 1 015 € |
| 5 | 8 280 € | 164 166 € | 213 847 € | 49 681 € | 46 903 € | 4 385 € | 967 € |
| 6 | 8 264 € | 160 826 € | 220 262 € | 59 436 € | 55 993 € | 4 385 € | 917 € |
| 7 | 8 688 € | 157 351 € | 226 870 € | 69 519 € | 65 608 € | 4 385 € | 689 € |
| 8 | 8 671 € | 153 734 € | 233 676 € | 79 942 € | 75 492 € | 4 385 € | 635 € |
| 9 | 8 653 € | 149 970 € | 240 686 € | 90 716 € | 85 653 € | 4 385 € | 579 € |
| 10 | 9 098 € | 146 053 € | 247 907 € | 101 854 € | 96 380 € | 4 385 € | 335 € |
Typical for: existing flats. The rate depends on applicable rules; the year built alone does not establish a higher rate.
The model uses 2% of building value per year under § 7(4) EStG. A higher rate requires an applicable legal basis, such as evidence of a shorter actual useful life.
Typical for: residential new builds completed from 2023, with equal annual depreciation.
Under § 7(4) EStG, residential buildings completed after 2022 use 3% per year on building value.
Typical for: residential new builds within the statutory time window, where higher depreciation in the early years matters.
5% of remaining book value under § 7(5a) EStG. The model checks each year whether straight-line depreciation over the remaining useful life is more favourable. The statutory construction-start or purchase windows must be met.
Typical for: eligible EH40 rental new builds with QNG, combining declining-balance depreciation and special depreciation.
Ordinary declining depreciation and special depreciation are calculated separately for four years. From year 5, the remaining value reflects both. Eligibility under § 7b EStG is assumed.
Typical for: eligible EH40 rental new builds with QNG, combining straight-line depreciation and special depreciation for the first four years.
Ordinary straight-line depreciation plus special depreciation for four years; the residual value is then spread over the remaining useful life. Eligibility under § 7b EStG is assumed.
Typical for: rented listed buildings with recognised restoration costs and work agreed with the heritage authority in advance.
Renovation costs: 9% annually for eight years, then 7% for four years, plus straight-line depreciation on the original building share. Recognition and prior agreement with the heritage authority are required.
Every Yes scores one point. 0 to 2 points mean little upside at high risk. 3 to 5 points indicate solid optimisation potential. From 6 points a maximum increase in value is possible.
Professional tip on points 3 and 4: when viewing, check where the waste water stacks and downpipes (Abwasserstränge und Fallrohre) run. A storage room can almost always only be turned into a kitchen or a second bathroom if a water connection is close by, usually on the wall backing onto the existing bathroom.
Your initial own capital invested is 43 435 €. Repayment reduces the debt from 179 000 € to 146 053 €. After 10 years, the property value is 247 907 €, and total wealth including accumulated cashflow is about 96 380 €. The change relative to initial capital invested is 52 945 €, with a total return of 121.89 %. Monthly cashflow after tax and with repayment is -21.0 € in year 1; the full period requires average additional payments of 45.6 € per month.
This assessment summarises only the calculated metrics and is not a purchase recommendation. Location, condition and lettability must be checked separately.
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