Loan and Investment Returns Calculators
Whether you are a passive real estate investor, a homeowner, or are considering investing in a rental property, there may be a quick analysis you want to do in order to help you make a more informed decision. That’s why we built this set of simple to use calculators. Understand your potential annual return on an investment, the impact to your mortgage payments or other personal loans from a refinance, and compare monthly payments and interest between loans.
Internal Rate of Return (IRR) Calculator
This calculator is especially helpful for passive investors who are looking to calculate the annual return of a real estate investment while also taking into account things like the time value of money (learn more about IRR vs AAR here). This enables you to compare the return on the investment vs other investments like stocks. Simply enter the principal you invested under initial investment and the expected or actual cash flow you’ve received throughout the project. If this is for a multifamily syndication, be sure to include the profit from the sale of the asset in the final year of the investment field. You can add your own “guess” of your IRR if this was provided to you to see how the projected IRR compares to the calculation.
Loan Comparison Calculator
The loan comparison calculator allows you to compare two loans with differing terms and interest payments, such as a mortgage or a personal loan. This can help you decide what the monthly debt servicing would be depending on the length of the loan and interest rate. Note: this calculator is best used for fixed rate loans vs variable loans.
Loan Refinance Calculator
You may eventually reconsider refinancing a mortgage on either an investment property or on your primary home loan to either reduce your payments or do a cash out refinance. This calculator will allow you to understand the impact to your monthly payments and help you decide if it makes sense for you to do. If you are doing a cash out refinance, be sure to include that amount in the loan balance to see a true comparison of your old loan to your new loan.
Need help deciding Your Real Estate Investment Approach?
We know it helps to talk to a real person at some point. Schedule a free introductory call with our team to help us get to know you, your goals, and your challenges so you can move forward in your journey. Everyone on our team has experience in both active and passive real estate investing and can help answer any questions you might have around your strategy.