Levered vs Unlevered Real Estate Return Calculator
Compare property returns when purchased with all cash versus leveraged with a mortgage.
Calculation Inputs
Calculation Results
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Enter inputs on the left and click Calculate to view results.
Formula & Methodology
Unlevered = (NOI + Appreciation) / Price; Levered = (Cash Flow + Equity Gain) / Cash Invested
Leverage amplifies returns when property income exceeds borrowing costs (positive leverage).
Frequently Asked Questions
What is positive leverage in real estate?
Positive leverage occurs when cap rate exceeds mortgage rate, meaning borrowing money improves your overall return.