Does anyone have the formula to calculate the percentage return on a real estate rental property that takes into account: Monthly income, monthly expenses, property appreciation, mortgage interest rate and the IRS tax depreciation?
2006-08-21 09:17:07 · 2 answers · asked by Gamer65 1 in Business & Finance ➔ Personal Finance
Use a spreadsheet to determine your net income per month after expenses (including mortgage interest, and the affect of tax depreciation). You can include your property appreciation in the net income calculation.
That net income, divided by your total initial investment, is your rate of return.
2006-08-21 13:59:34 · answer #1 · answered by West Coaster 4 · 0⤊ 0⤋
Use the Microsft Excel function PPMT and IPMT to calculate the amount of principal and interest you pay back for a certain month.
Cell Content
C2 Years
C3 30
D2 Rate
D3 0.05
E2 Amount
E3 100000
H3 1
Cell I3 =PPMT($D$3/12;$H3;$C$3*12;$E$3;0)
result of cell I3 = -$120.15
Cell I4 =PPMT($D$3/12;$H4;$C$3*12;$E$3;0)
result of cell I4 = -$120.656
Cell J3 =IPMT($D$3/12;$H3;$C$3*12;$E$3;0)
Result of cell J3 = -$416.67
Cell J4 =IPMT($D$3/12;$H4;$C$3*12;$E$3;0)
Result of cell J4 = -$416.17
Cell K3 = +I3+J3
Result of cell K3 = -536,82
Cell K4 = +I4+J4
Result of cell K4 = -536,82
Here are a few more results:
Year Month Principal Interest controle
1 -$120.15 -$416.67 -$536.82
2 -$120.66 -$416.17 -$536.82
3 -$121.16 -$415.66 -$536.82
4 -$121.66 -$415.16 -$536.82
5 -$122.17 -$414.65 -$536.82
6 -$122.68 -$414.14 -$536.82
7 -$123.19 -$413.63 -$536.82
8 -$123.70 -$413.12 -$536.82
9 -$124.22 -$412.60 -$536.82
10 -$124.74 -$412.09 -$536.82
11 -$125.26 -$411.57 -$536.82
1 12 -$125.78 -$411.04 -$536.82
2 24 -$132.21 -$404.61 -$536.82
3 36 -$138.98 -$397.84 -$536.82
4 48 -$146.09 -$390.73 -$536.82
5 60 -$153.56 -$383.26 -$536.82
6 72 -$161.42 -$375.40 -$536.82
7 84 -$169.68 -$367.14 -$536.82
8 96 -$178.36 -$358.46 -$536.82
9 108 -$187.48 -$349.34 -$536.82
10 120 -$197.08 -$339.75 -$536.82
15 180 -$252.92 -$283.90 -$536.82
20 240 -$324.58 -$212.24 -$536.82
25 300 -$416.56 -$120.26 -$536.82
30 360 -$534.59 -$ 2.23 -$536.82
2006-08-22 05:06:51 · answer #2 · answered by roy_s_jones 6 · 1⤊ 0⤋