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.
- Rental Income
- Property Value
🔍 How to use these charts:
- Click on any chart title to see a beginner-friendly explanation
- Hover over chart elements to see specific values
- Notice how changes to your inputs affect different aspects of the investment
- 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.
This calculator is for educational purposes only. Always consult with a qualified investment professional before making financial decisions.