This calculator is designed to estimate returns on real estate rental investments. The twist is it's designed to better handle uncertainty.

This calculator allows you to enter a range for each input in your investment calculation. For example instead of entering a single number for what Interest Rates will be in 10 years, you provide Best, Worst and Most Likely values. Thousands of simulations are run, each selecting random inputs from your specified range and calculating a different result. Looking at thousands of results helps us understand the probabilty of investment returns. This technique is called Monte Carlo Simulation.

Disclaimer: This calculator is for educational purposes only. Consult a professional before making any investment decisions.

	Minimum Value	Most Likely Value	Maximum Value	Notes
Purchase and Mortgage Details
(A) Purchase Price		$		What the purchase price of the property is.
(B) Mortgage Amortization Period		Years		Over how many years the mortgage will be financed.
(C) Starting Mortgage Interest Rate		%		What the interest rate for the initial mortgage will be. Some helpful resources
(D) Mortgage Term				What the term of the initial mortgage will be. This is typically less than the amortization period. If the property is held beyond the term of the initial mortgage, it is assumed that the property will be refinanced at a new interest rate when this term ends.
(E) Ending Mortgage Interest Rate	%	%	%	What the anticipated interest rate will be the end of (J) Years to Hold Property
(F) Down Payment Percent		%		What Percentage of the (A) Purchase Price is put as a downpayment.
(G) Legal Fees to Buy	$	$	$	What the legal fees will be to complete the purchase.
(H) Property Transfer Tax		%		What the property transfer taxes will be to complete the purchase.
(I) Additional Expenses for Purchase	$	$	$	Any additional expenses associated with the purchase. This may include inspections, travel, etc.
Sale Details
(J) Years to Hold Property	Years	Years	Years	How many years the property will be held for.
(K) Assumed Annual Appreciation	%	%	%	What the average annual increae in the property price will be. Some resources for upside and downside.
(L) Legal Fees to Sell	$	$	$	What the legal fees will be to complete the sale.
(M) Realtor Fees to Sell	%	%	%	What the realtor fees will be to complete the sale, in terms of percentage of the sale price.
Rental Details
(N) Monthly Rent	$	$	$	What the monthly rent will be. Some helpful resources.
(O) Percent of Time Occupied	%	%	%	What percent of the time will the unit be rented.
(P) Annual Rent Increase	%	%	%	What will the average annual increases in rent be.
Expenses
(Q) Monthy Expenses (in dollars, including Condo Fees)	$	$	$	What the monthly costs expenses will be for maintenance (including condo fees), any required utilities for which you're responsible and any other reoccuring expenses.
(R) Annual Property Insurance	$	$	$	What the annual insurance costs will be for property insurance.
(S) Management Fees (as percent of rent)	%	%	%	What the management fee will be as a percentage of rent. If no property manager is used, then all three values can be set to zero.
(T) Annual Property Tax		%		What the annual property taxes will be. This is applied to the (A) Purchase Price, adjusted by (K) Assumed Annual Appreciation
Economic Assumptions
(U) Annual Inflation Rate	%	%	%	What the annual inflation rate will be. This is applied to (Q) Monthy Expenses, (R) Annual Property Insurance and (S) Management Fees

Summary

		Annualized Rate of Return Based on monthly cash inputs and outputs	Gross Yield Total Annual Rent Purchase Price	Net Yield Total Annual Income After Expenses* Purchase price * Excludes Mortage Payments
Based only on Most Likely Input Values		%	%	%
Based on Range of Input Values Using Monte Carlo Simulation	50% Probability Betweeen	to %
	80% Probability Betweeen	to %
	Model Median	%

Probability of Annualized Return

This shows the likelihood of Returns based on the range of inputs provided.

Sensitivity Analysis

This shows the relative impact of each input variable on the estimated returns.

Month by Month Analysis of Most Likely Values

This shows an overview of how the model works by stepping through the finances each month.
This is done using Most Likely input values. Each simulation iteration repeats this process with different inputs values.

Month	Cash Out					Cash In			Net Cash	Mortgage Principle Paid	Notes
Month	Mortgage	Taxes	Maintenance	Professional Services	Total Cash Out	Rent	Sale	Total Cash In	Net Cash	Mortgage Principle Paid	Notes

Overview

Inputs

Results