Property investment calculator
Correct the highlighted fields to calculate your results.
−R 3 980 / month after tax
Year 1 cash flow: −R 5 266 / month before tax.
Buying needs R 245 360 in cash. Selling after 10 years would leave R 994 806 after the bond, costs and tax: a total profit of R 382 252 (6,8% annualised).
Buying
| Item | Amount |
|---|---|
| Deposit (10%) | R 150 000 |
| Transfer duty | R 8 700 |
| Transfer attorney fees (estimate) | R 42 530 |
| Bond registration and initiation (estimate) | R 44 130 |
| Cash needed | R 245 360 |
| Bond (10,75% over 20 years) | R 1 350 000 |
| Monthly bond repayment | R 13 706 |
The first year
| Item | Monthly average | Per year |
|---|---|---|
| Rent collected, after vacancy | R 11 400 | R 136 800 |
| Running costs | −R 2 960 | −R 35 520 |
| Bond repayments | −R 13 706 | −R 164 467 |
| Cash flow before tax | −R 5 266 | −R 63 187 |
| Estimated annual tax relief (timing varies) | +R 1 286 | +R 15 431 |
| Cash flow after tax | −R 3 980 | −R 47 756 |
Returns
| Measure | Value |
|---|---|
| Gross rental yield | 9,6% |
| Net rental yield, after running costs | 6,8% |
| Cash-on-cash return, first year | −19,5% |
| Annualised return (IRR, 10 years) | 6,8% |
| Total profit over 10 years | R 382 252 |
Equity and bond over time
- Your equity
- Bond balance
Year by year
| Year | Property value | Bond balance | Equity | Cash flow after tax | Total cash flow |
|---|---|---|---|---|---|
| 1 | R 1 560 000 | R 1 329 676 | R 230 324 | −R 47 756 | −R 47 756 |
| 2 | R 1 622 400 | R 1 307 056 | R 315 344 | −R 45 438 | −R 93 194 |
| 3 | R 1 687 296 | R 1 281 881 | R 405 415 | −R 43 061 | −R 136 256 |
| 4 | R 1 754 788 | R 1 253 862 | R 500 926 | −R 40 630 | −R 176 886 |
| 5 | R 1 824 979 | R 1 222 679 | R 602 301 | −R 38 148 | −R 215 033 |
| 6 | R 1 897 979 | R 1 187 972 | R 710 006 | −R 35 620 | −R 250 654 |
| 7 | R 1 973 898 | R 1 149 346 | R 824 552 | −R 33 053 | −R 283 707 |
| 8 | R 2 052 854 | R 1 106 356 | R 946 497 | −R 30 455 | −R 314 162 |
| 9 | R 2 134 968 | R 1 058 511 | R 1 076 457 | −R 27 833 | −R 341 995 |
| 10 | R 2 220 366 | R 1 005 261 | R 1 215 106 | −R 25 199 | −R 367 194 |
Selling after 10 years
| Item | Amount |
|---|---|
| Sale price | R 2 220 366 |
| Selling costs (6,9%) | −R 153 205 |
| Bond settled | −R 1 005 261 |
| Capital gains tax | −R 67 094 |
| Proceeds | R 994 806 |
Calculation assumptions
- The bond rate stays fixed. Rent, rates, levies, insurance and property value change annually; maintenance and letting fees track rent collected.
- Transfer duty uses SARS rates from 1 April 2025. Blank fee fields use July 2026 LSSA estimates including VAT, disbursements and bond initiation.
- Rental tax applies to rent less running costs and interest, not capital repayments. With loss offsets off, rental losses carry forward (section 20A). Tax bracket changes and allowances are excluded.
- CGT base cost includes the price, transfer duty, transfer fees and improvements still present at sale and not deducted from income. 40% of gains above the R 50 000 annual exclusion is taxed at your marginal rate. Other upfront costs receive no assumed tax relief.
- Yields use the purchase price; cash-on-cash uses upfront cash. IRR includes annual cash flows and net sale proceeds. Returns exclude inflation.