Renditerechner Pro Immobilien

Manfred Hennig

About this app

The Real Estate Return Calculator Pro (IRRP) helps optimize your real estate investment. You can calculate the return on investment using the following methods: Gross Initial Yield (BAR), Net Initial Yield (NAR), Return on Equity (ROE), and Internal Rate of Return (IRR). With just a few parameters, users can determine a return using BAR, NAR, and IRR. The IRR method allows investors to simulate future factors to estimate the actual return. Alternatively, you can calculate the purchase price or rent. This allows you to determine the rent at which a specific return is achieved or the maximum price you can pay to reach a desired return.

BAR, NAR, and IRR are static methods, meaning they are tied to a specific point in time, and the relevant parameters are known before you purchase the property. When acquiring a property, these three key figures are considered important decision-making factors: The Net Annual Rent (NAR) compares the annual rent to the net purchase price. The Net Annual Profit (NAP) takes into account not only the factors of the NAR but also acquisition costs and expenses not passed on to tenants. The Net Profit Calculation (NPV) compares the net profit to the capital invested.

In contrast, the Interim Return on Investment (IRI) method, as a dynamic investment appraisal technique, considers the entire period from purchase to sale of the property. It includes all income and expenses and calculates an average return on investment. The IRP can incorporate around 30 influencing factors, including depreciation, loans, potential rent increases, and much more. Tax aspects are also considered – in a simplified form. The IAR method is particularly well-suited for simulating various scenarios, for example, to calculate how a specific rent increase affects the return on investment.

The calculation target can be selected from return on investment, purchase price, or rent. This allows you to determine, for example, what rent would be necessary to achieve a specific return on investment, or what the maximum purchase price of a property should be to achieve that goal.

All numerical input fields have an integrated calculator function. For example, a garage can be easily added to the total purchase price.

An advanced feature is the use of variables, which allow you to link fields (parameters). 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.

Additional features:

• Local saving, loading, and deleting of a loan configuration on your smartphone

• Exporting (sharing) a loan configuration and importing it to another device with IRRP installed

• Display of the amortization schedule based on the loan parameters

• Overview page with all parameters and the four key performance indicators (KPIs)

• Listing of the annual cash flow, including tax implications from the IRR calculation, with a detailed annual view for each line item

• Page display in eight color schemes

Apart from sharing, IRRP does not use any other services and can also be used offline.