Renditerechner für Immobilien

Manfred Hennig

About this app

The Real Estate Return Calculator (IRR) helps optimize your real estate investment by calculating the return on investment using the following methods: Gross Initial Yield (GI), Net Initial Yield (NI), and Return on Equity (ROE).

GI, NNI, and ROE are static methods, meaning they are tied to a specific point in time, and the relevant parameters are known before you purchase the property. These three metrics are crucial for making informed decisions when acquiring a property: GI compares the annual rent to the net purchase price. NNI, in addition to the factors used in GI, also considers closing costs and expenses not passed on to tenants. ROE compares the net profit to your invested capital. For an initial return estimate, NNI is recommended.

You can choose to calculate the return on investment, purchase price, or rent. For example, it's possible to determine how high the rent would need to be to achieve a specific return target, or what the maximum purchase price of a property should be to achieve that target.

The Pro version of the IRR additionally offers the internal rate of return (IRR) method, which considers the period from purchase to sale of the property, including all income and expenses (tax rate, depreciation, repair costs, rent increases, loan repayments, etc.), to calculate the property's return. The Pro version can also save, load, and delete configurations, provide a comprehensive overview of parameters and results, list the cash flow over all years until the sale, display the amortization schedule for the loan, and much more. The full range of features can be found directly on the IRR Pro website.

Further features of the IRR:

• Page display in eight color schemes

• Integrated calculator function for all numerical input fields Example calculation of rent based on apartment size, rent per square meter, and parking space rent: 50.5 * 9.2 + 40.

• Variables that allow fields (parameters) to be linked together. For example, to define the purchase price based on the rent, you could write: Purchase Price = Rent × 25. If the rent changes, the purchase price adjusts automatically.

The IRR itself does not use any other services and can also be used offline.