Real Estate Investment Calculator for Germany
Does buying an investment property in Germany make sense? Calculate your rental yield, appreciation, and tax benefits for investment properties in Germany.Updated on 27 March 2025
This advanced calculator not only calculates your rental yield and property appreciation but also shows you how accelerated depreciation—known as “Absetzung für Abnutzung” (AfA)—can significantly reduce your taxable income and boost your net returns (IRR).
Fill in your property details:
Rental yield 3,36 % | Rental income/month 700 € | Price/m² 5.000 € |
Securing Your Loan
How will your loan and equity cover your purchase?
For your desired property, the costs you have to consider are notary fees of 2 % and property transfer tax of 6 %. In total, you will have the purchase fees of 20.650 € for this property. In addition you have a downpayment of 12.350 €, for total up front cost of 33.000 €. Your loan amount is 237.650 € with the interest rate of 3,17 %, based on an LTV of 95 %.
Your Financial Situation
Your estimated marginal tax rate is 40,22 %. This influences your loan eligibility and tax benefits related to property ownership.
Investment Assumptions
Advanced Considerations
Projected Financial Outcomes
Since your property qualifies for the Sonder-AfA condition and with your upfront investment of 33.000 €, your projected total gains over various periods are as follows:
Over 10Y | Over 15Y | Over 30Y | |
|---|---|---|---|
Appreciation | 85.979 € | 139.492 € | 356.816 € |
Tax benefits | 47.175 € | 59.274 € | 91.447 € |
Operational profit | -20.394 € | -11.729 € | 65.258 € |
Total profit | 112.760 € | 187.037 € | 513.521 € |
The internal rate of return (IRR) over these timeframes is estimated as:
IRR over 10 years 20,11 % | IRR over 15 years 16,91 % | IRR over 30 years 11,7 % |
Build your wealth in Germany
Learn how to invest in energy-efficient new builds
Visualizing Your Investment
To help you analyze your financial projections, here are the key insights:
Average monthly cash flow projection in year 1-40 (Cashflow excludes the purchase fees and downpayment)
Your Projected Payment Plan (Average Monthly Cashflow)
Year | Mortgage (out) | Maintenance (out) | Rental income (in) | Tax refund (in) |
|---|---|---|---|---|
1 | 255 € | 0 € | 0 € | 0 € |
2 | 738 € | 124 € | 700 € | 103 € |
3 | 738 € | 127 € | 721 € | 629 € |
4 | 738 € | 131 € | 743 € | 687 € |
5 | 738 € | 135 € | 765 € | 644 € |
6 | 1.004 € | 139 € | 788 € | 603 € |
7 | 1.004 € | 143 € | 811 € | 244 € |
8 | 1.004 € | 148 € | 836 € | 217 € |
9 | 1.004 € | 152 € | 861 € | 189 € |
10 | 1.004 € | 157 € | 887 € | 162 € |
11 | 1.007 € | 161 € | 913 € | 135 € |
12 | 1.007 € | 166 € | 941 € | 129 € |
13 | 1.007 € | 171 € | 969 € | 102 € |
14 | 1.007 € | 176 € | 998 € | 76 € |
15 | 1.007 € | 182 € | 1.028 € | 49 € |
Cumulative net worth over time
By carefully planning your property investment, securing favorable financing, and optimizing tax benefits, you are setting yourself up for long-term financial success. This strategic approach ensures that your investment aligns with your financial goals and maximizes your returns over time.