How This Calculator Works
VS
This calculator lets you easily build a financial model to analyze rental real estate deals, compared against an alternative index fund investment.
It accounts for:
- Tax benefits (depreciation, 1031 exchange)
- Transaction costs
- Income growth over time
- Expense growth over time
- And much more
Investors have come up with simple metrics to try to make analysis easy, such as Cap Rates, Cash-on-Cash returns, and Rent Yields to name a few. But those all provide an incomplete picture.
Our approach: build a financial model around your real estate deal, so you make your own assumptions about the future to determine how, in total, a particular deal might help build wealth over a long period of time.
A full writeup of the assumptions made by this calculator is coming soon in a blog post.
If you find this tool useful, please share it with your friends!
Thanks, and best of luck in your wealth growing journey!
Collapse
Rental vs. Index Fund Calculator
•
•
| Year | Net Value | CAGR |
|---|---|---|
| 1 | $86,390 | 10.76% |
| 5 | $177,593 | 17.89% |
| 10 | $346,751 | 16.09% |
| 20 | $973,271 | 13.45% |
| 30 | $2,346,244 | 12.01% |
$87
| Year | Cash flow | Cash-on-cash |
|---|---|---|
| 1 | $961 | 1.23% |
| 5 | $5,420 | 6.95% |
| 10 | $12,127 | 15.55% |
| 20 | $30,456 | 39.05% |
| 30 | $58,008 | 74.37% |
About
My name is Chris Talley, and I'm a software engineer with a passion for personal finance. Disappointed with the lack of rigor in the financial analysis tools that are available online, I often find myself putting together complicated spreadsheets in order to answer important financial questions. I created the Rational Riches website to help others gain a rigorous understanding of their most important financial decisions.
🚨 I am not an accountant or financial advisor 🚨All information provided here should be verified and vetted by you, your family, and your financial counsel.
Thank you for visiting Rational Riches. Feel free to contact me if you have any problems, questions, or requests about this project.