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Available across Germany

Available across Germany

Free for you, paid by lenders

 Mon - Fri: 9 AM - 7 PM

Real Estate Investment Calculator for Germany

Does buying a new investment property in Germany make sense? Calculate the return on investment (IRR), and see the difference tax refund can make for residential investment properties in Germany.
Dr. Chris Mulder

Dr. Chris is a former Senior Economist and Manager at the IMF and The World Bank. He is a Hypofriend Co-founder.

Updated on 2 June 2025

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Dr. Chris is a former Senior Economist and Manager at the IMF and The World Bank. He is a Hypofriend Co-founder.

This advanced calculator not only calculates how property appreciation and rental yield changes your return, but it also shows that depreciation of the rental property—known as “Absetzung für Abnutzung” (AfA)—can significantly reduce your taxable income and boost your net returns.

Fill in your property details:

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Rental yield

3,24 %

Rental income/month

675 €

Price/m²

5.000 €

Securing Your Loan

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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 6,5 %. In total, you will have the purchase fees of 22.200 € for this property. In addition you have a downpayment of 13.000 €, for total up front cost of 35.200 €.

  • Bank loan is 87.000 € with the interest rate of 3,76 %.

  • KfW loan is 150.000 € with the interest rate of 2,83 %.

  • Total loan amount is 237.000 € with the mixed interest rate of 3,17 %.

Your Financial Situation

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Your estimated marginal tax rate is 40,22 %. This influences your loan eligibility and tax refund related to property ownership.

Investment Assumptions

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Advanced Considerations

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Tax Depeciation and Tax Savings of a Property as % of Initial Building Value

Year

Normal depreciation

Special depreciation

Total depreciation

Average marginal tax rate

Tax savings on depreciation

1

0 €

0 €

0 €

40,22 %

0 €

2

12.860 €

10.000 €

22.860 €

38,44 %

8.788 €

3

11.717 €

10.000 €

21.717 €

38,52 %

8.366 €

4

10.631 €

10.000 €

20.631 €

38,68 %

7.979 €

5

9.600 €

10.000 €

19.600 €

38,75 %

7.595 €

6

8.620 €

0 €

8.620 €

39,6 %

3.414 €

7

8.189 €

0 €

8.189 €

39,6 %

3.243 €

8

7.779 €

0 €

7.779 €

39,6 %

3.081 €

9

7.390 €

0 €

7.390 €

39,68 %

2.932 €

10

7.021 €

0 €

7.021 €

39,68 %

2.786 €

Projected Overall Financial Outcomes

Since your property qualifies for the Sonder-AfA condition and with your upfront investment of 35.200 €, your projected total gains over various periods are as follows:

Over 10Y

Over 15Y

Over 30Y

Appreciation

85.979 €

139.492 €

356.816 €

Depreciation Tax Savings

48.183 €

60.185 €

92.085 €

Operational profit

-25.508 €

-17.622 €

57.905 €

Total profit

108.655 €

182.055 €

506.806 €

The internal rate of return (IRR) over these timeframes is estimated as:

IRR over 10 years

17,93 %

IRR over 15 years

15,46 %

IRR over 30 years

10,87 %

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)

Monthly cashflow

1

529 €

0 €

0 €

0 €

-529 €

2

732 €

124 €

675 €

213 €

32 €

3

732 €

127 €

695 €

735 €

572 €

4

732 €

131 €

716 €

691 €

545 €

5

732 €

135 €

738 €

650 €

521 €

6

1.000 €

139 €

760 €

609 €

229 €

7

1.000 €

143 €

783 €

250 €

-111 €

8

1.000 €

148 €

806 €

223 €

-119 €

9

1.000 €

152 €

830 €

195 €

-127 €

10

1.000 €

157 €

855 €

169 €

-133 €

11

1.032 €

161 €

881 €

142 €

-171 €

12

1.032 €

166 €

907 €

136 €

-155 €

13

1.032 €

171 €

934 €

110 €

-159 €

14

1.032 €

176 €

962 €

83 €

-163 €

15

1.032 €

182 €

991 €

56 €

-166 €

Cumulative net worth over time

By carefully planning your property investment, securing favorable financing, and optimizing tax refund, 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.

Dr. Chris Mulder

Dr. Chris Mulder

Dr. Chris is a former Senior Economist and Manager at the IMF and The World Bank. He is a Hypofriend Co-founder.

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