Skip to main content
Logo

Real Estate Investment Calculator

Understand your potential property investment before committing

This calculator helps you understand the financial aspects of real estate investing. We'll break down key concepts like rental yield, capital appreciation, and total returns in easy-to-understand terms. As featured in our example, a 1-bedroom property of 47 square meters priced at KES 4,000,000 with KES 25,000 monthly rent can generate an 8% rental yield with potential 10-15% capital appreciation.

Property Details

Different property types have different risk and return profiles

Location is one of the most important factors in real estate

The amount you'll pay to acquire the property

Size helps determine value and appeal to tenants

Expected monthly rental income from tenants

Advanced Factors

How long you plan to hold the property

Expected property value at the end of your projection period

Used to auto-calculate future value. Kenya's historical range: 4-10%

Expected percentage of time property will be vacant

Industry standard: 1-3% for newer properties, 3-5% for older ones

Investment Analysis

Price per Sq.m

Ksh 85,106

Helps compare similar properties

Annual Rental Income

Ksh 300,000

Monthly rent × 12

Gross Rental Yield

7.50%

Annual rental ÷ purchase price

Net Rental Yield

5.13%

After vacancies & maintenance

Projected Capital Gains

Ksh 400,000 (10.00%)

Future value - purchase price

Total Return (3 years)

Ksh 1,015,000 (25.37%)

Capital gains + rental income over period

Annualized Return

8.46%

Total return % ÷ years

Break-even Point

19.5 years

When net rent pays back purchase

Understanding Real Estate Investment

Rental Yield is the annual rental income divided by the property's price. For example, our 1-bedroom with KES 25,000 monthly rent (KES 300,000 annually) on a KES 4,000,000 property gives an 8% rental yield (300,000 ÷ 4,000,000 × 100).

Net Rental Yield accounts for vacancies and maintenance costs, giving you a more realistic picture of your returns.

Capital Appreciation is the increase in property value over time. In our example, the property is projected to increase from KES 4,000,000 to KES 4,400,000, a 10% gain.

Total Return combines both rental income and capital appreciation to show your complete investment performance.

Advanced Investment Factors

Property Expenses

Annual: Ksh 300,000

Annual: Ksh 20,000

Annual: Ksh 22,500

Annual: Ksh 0

For major replacements (roof, HVAC): Ksh 60,000

One-time expense prior to renting

Financing Options

Transaction Costs

Amount: Ksh 80,000

Estimated: Ksh 220,000

Cash Flow Analysis

Monthly Cash Flow

-Ksh 8,542

Income minus all expenses

Annual Cash Flow

-Ksh 102,500

Monthly flow × 12

Cash-on-Cash Return

-2.51%

Annual cash flow ÷ total investment

Total Investment

Ksh 4,080,000

Down payment + closing costs + renovations

Projected ROI (3 years)

-3.13%

Total return ÷ initial investment

Investment Visualizations

These charts help you understand different aspects of your real estate investment. Click on a chart's title to see a detailed explanation.

Year 0Year 1Year 2Year 30K1.5M3.0M4.5M6.0M
Year 0Year 1Year 2Year 30K1.5M3.0M4.5M6.0M
  • Rental Income
  • Property Value
0%3%6%9.5%ThisPropertyAvg RealEstateStocksBondsSavings
Net Income: 68%Vacancy Loss: 5%Maintenance: 27%

🔍 How to use these charts:

  1. Click on any chart title to see a beginner-friendly explanation
  2. Hover over chart elements to see specific values
  3. Notice how changes to your inputs affect different aspects of the investment
  4. Use these visuals to compare different investment scenarios

Remember: These charts are projections based on your inputs. Actual results may vary due to market conditions, property management, and other factors.

© 2025 Bear Financials | All calculations are estimates and not financial advice

This calculator is for educational purposes only. Always consult with a qualified investment professional before making financial decisions.