How to calculate the rate of return for rental property.?
If I know what I paid, and the value currently, and I know how much profit I recieved per year (which in this case is defined as the distribution of income after expenses- once per year around the first of the year), how can I factor these in, to come up with a rate of return? How do I factor in that some of the distributions were tax-free, and that a portion were not, and these portions are changing from year to year.
Does somebody have an excel spreadsheet that has the fromulas plugged in to do this?
February 7th, 2010 at 1:18 am
7% yearly rental income on the value of the house.
February 7th, 2010 at 1:46 am
Add up your rental income, then subtract all your expenses and divide it by the amount of your down payment. Thats a quick way to do it.
February 7th, 2010 at 2:30 am
You have alot of Finance functions in
Insert > Function > finance category
These are powerful functions, you should find what you need there
good luck
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