Retirement Property Calculator
years
years
USD
%
USD
USD
USD
USD
USD
How to Calculate Retirement Property Metrics
Here are the primary calculations involved:
- Affordability: \text{Affordability (\%)} = \left( \frac{\text{Available Savings} + \text{Monthly Income Allocated for Property}}{\text{Property Price}} \right) \times 100
- Rental Income: \text{Rental Income} = \text{Monthly Rent} \times 12
- Net Retirement Property Cost: \text{Net Cost} = \text{Property Price} + \text{Annual Maintenance Costs} - \text{Rental Income}
Example:
You are considering purchasing a retirement property priced at $250,000. You plan to rent it out for part of the year and expect the following:
- Savings: $50,000
- Monthly income allocated for property expenses: $2,000
- Expected monthly rent: $1,200 (for 10 months/year)
- Annual maintenance costs: $3,000
- Affordability: \text{Affordability (\%)} = \left( \frac{50000 + (2000 \times 12)}{250000} \right) \times 100 = 136 \%
- Rental Income: \text{Rental Income} = 1200 \times 10 = 12,000 \, \text{USD/year}
- Net Cost: \text{Net Cost} = 250000 + 3000 - 12000 = 241,000 \, \text{USD} After rental income, the effective cost of owning the property is reduced.