Irish Calculators
Property

Investment Property Profit and Return Calculator

Model contributions, annual rental cash flows and net sale proceeds over a chosen holding period. Values are scenarios, and annualised IRR is shown only for the supported conventional cash-flow pattern.

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Your numbers

%
Monthly interest is the annual nominal rate divided by 12. This is not a fee-inclusive APR.
Your figures stay on this device.

How the calculation works

Estimate the cash outcome of buying, operating and selling an investment property. The calculation combines your initial contribution, annual rental cash flow, mortgage payments and net sale proceeds. Prices, taxes and costs are supplied scenarios; no market value or tax liability is inferred.

Initial cash = purchase + initial costs − loan advance. Annual cash = received rent − costs − debt payments; final cash also includes sale proceeds less sale costs and remaining debt. ROI uses all contributed cash; IRR is reported only for a unique conventional cash-flow pattern.

  1. Establish the initial cash contribution

    Purchase price plus initial costs, less the loan advance, forms the initial investment. This must be positive.

  2. Build annual cash flows

    Each year’s rent is reduced by annual costs and mortgage payments. Principal repayments affect cash flow and reduce outstanding debt.

  3. Include the final sale

    In the last year, sale price less selling costs and remaining debt is added to operating cash. Negative annual totals are counted as later cash required.

  4. Compare profit and annualised return

    Net profit is the sum of all cash flows including the initial outflow. Total cash return divides profit by initial and later contributions. Annual IRR is shown only when all later annual flows are non-negative and at least one is positive.

Worked example: Unlevered one-year investment

Sample inputs demonstrate the method. They are not a forecast or product offer.

The example buys for €100,000 without borrowing, receives €10,000 rent and sells after one year for €110,000 with no costs. The final inflow is €120,000 against €100,000 invested: €20,000 profit, 20% total cash return and 20% annual IRR.

Purchase price
100000
Purchase costs and initial refurbishment
0
Initial mortgage advance
0
Annual nominal interest rate (%)
0
Remaining term (months)
12
Holding period in years
1
Annual rent received after vacancy
10000
Annual operating costs, reserves and taxes
0
Sale price at the end
110000
Selling costs and taxes
0

Expected result

Total net profit
€20,000.00
Return on total contributed cash
20%
Annual internal rate of return
20%
Worked example: Principal repaid and residual sale debt reconciled

Sample inputs demonstrate the method. They are not a forecast or product offer.

Purchase price
100000
Purchase costs and initial refurbishment
0
Initial mortgage advance
50000
Annual nominal interest rate (%)
0
Remaining term (months)
24
Holding period in years
1
Annual rent received after vacancy
30000
Annual operating costs, reserves and taxes
0
Sale price at the end
110000
Selling costs and taxes
0

Expected result

Initial cash invested
€50,000.00
Total net profit
€40,000.00
Return on total contributed cash
80%
Annual internal rate of return
80%

Understanding your result

Total cash return covers the entire holding period; it is not an annual percentage. The annual IRR uses year-end cash-flow timing, which can differ from monthly receipts and payments in practice.

Test the sale price and costs as assumptions. Use dated NPV separately when later negative cash flows prevent this calculator from reporting IRR.

Questions you might have

Is money borrowed at purchase treated as rental profit?

No. It reduces the cash required initially and must be serviced and repaid. It is never operating income.

Why might IRR be omitted?

Later negative cash flows can create multiple or ambiguous rates. The total cash profit remains visible and dated NPV is available separately.

Choosing the right inputs

Initial mortgage advance
Enter the initial mortgage advance, nominal annual rate and original term in months. The model uses a fully amortising monthly loan. Borrowing reduces initial cash required but creates payments and debt to repay at sale.
Annual rent received after vacancy
Enter annual rent received after vacancy. It stays constant throughout the holding period, without automatic growth or a further vacancy adjustment.
Annual operating costs, reserves and taxes
Include annual operating costs, reserves and taxes. Exclude mortgage payments here because they are calculated separately.
Selling costs and taxes
Enter selling costs and sale-related taxes as an amount. Exclude the remaining mortgage balance, which is deducted separately.

Common mistakes to avoid

  • Do not count borrowed money as rental income or profit.
  • Do not apply the cap-rate interpretation to a return that includes financing and a sale.

Assumptions to check

  • Property values, rents and costs are supplied scenarios. Enter any relevant taxes in costs; no tax liability or market growth is inferred.

Sources and method

Read our calculation and testing approach.