Yearly return on your cash, after income tax & social (unsold) — Furnished flat-share in Melun — LMNP · ID 02LMNPLMNP MWRR after tax

This page shows the yearly return on the money you put in if you do not sell, after income tax and social contributions. Result for year 25: 5.78% per year.

Where each number comes from

Each link opens the page that calculates that figure.

  1. What the property is worth to you (unsold) LMNP net worth, before and after income tax & social
    1. Loan paid off (equity built) Equity from Loan
    2. Property value increase Appreciation
    3. Your rental account, year by year LMNP personal rental account (opening, interest, flat tax, tax, payments after the purchase, closing)
      1. Tax and cash left each year LMNP income tax, social contributions, after-tax cash flow
        1. Income you are taxed on each year LMNP taxable income (régime réel: result, losses, wear-and-tear)
          1. Profit per year Cash flow page: rent − costs − loan interest, before tax
          2. Wear-and-tear deduction (depreciation: building, improvements, furniture) Depreciation
        2. Cash flow before tax (rent − costs − loan payments) Cash Flow
Part 1. Cash at purchase and payments after the purchaseMoney injected

Year 0: the cash at purchase, €60,233. After that, whatever you add to keep your rental account at €0 or more (a payment after the purchase).

YearOpeningInterest1Flat tax on the interestCash flow after taxPut in (payment after the purchase)2Closing
1€1,044€42€13€5,555€0€6,627
2€6,627€265€83€5,305€0€12,115
3€12,115€485€152€2,429€0€14,876
4€14,876€595€187€2,458€0€17,742
5€17,742€710€223€2,366€0€20,596
6€20,596€824€259€2,272€0€23,433
7€23,433€937€294€2,176€0€26,251
8€26,251€1,050€330€1,913€0€28,884
9€28,884€1,155€363€1,817€0€31,494
10€31,494€1,260€396€1,712€0€34,070
11€34,070€1,363€428€1,604€0€36,608
12€36,608€1,464€460€1,492€0€39,105
13€39,105€1,564€491€1,378€0€41,556
14€41,556€1,662€522€1,260€0€43,956
15€43,956€1,758€552€1,139€0€46,301
16€46,301€1,852€582€729€0€48,300
17€48,300€1,932€607€612€0€50,238
18€50,238€2,010€631€480€0€52,097
19€52,097€2,084€654€344€0€53,871
20€53,871€2,155€677€204€0€55,553
21€55,553€2,222€698€7,680€0€64,757
22€64,757€2,590€813€7,655€0€74,188
23€74,188€2,968€932€7,624€0€83,848
24€83,848€3,354€1,053€7,593€0€93,742
25€93,742€3,750€1,177€7,562€0€103,877
Part 2. Final amount at year 25
  • Equity (day-1 + loan paid off)€125,000
  • +Value increase (end of year)€16,599
  • +Rental account€103,877
  • =Final amount€245,476
  • Final amount€245,476
  • −Total cash put in (Part 1)€60,233
  • =Total profit€185,244

The same figure as what the property is worth to you (unsold), Part 2 (year 25).

Part 3. The formula

R = 5.78086945%: Σ Inj_t × (1 + R)^(25 − t) = €245,476.29; minus the final amount €245,476.29 = €0.00 — R is the rate that makes this €0. Each amount is put in at the end of its year t and grows from the next year on, for N − t years (the cash at purchase, year 0, for all N).

Part 4. ResultResult + proof
Cash at purchase and payments after the purchase€60,233Total cash put in
Final amount€245,476
Multiple4.084.08× money put in
Yearly return (MWRR)5.78%
Part 5. Yearly return by holding period (MWRR)MWRR by year
YearFinal amountYearly return (MWRR)1
1€26,211-56.48%
2€36,416-22.24%
3€44,035-9.91%
4€51,903-3.65%
5€59,906-0.11%
6€68,0472.05%
7€76,3273.44%
8€84,5854.34%
9€92,9894.94%
10€101,5355.36%
11€110,2225.65%
12€119,0555.84%
13€128,0335.97%
14€137,1596.05%
15€146,4366.10%
16€155,5786.11%
17€164,8786.10%
18€174,3256.08%
19€183,9206.05%
20€193,6656.01%
21€203,5605.97%
22€213,6855.92%
23€224,0425.88%
24€234,6375.83%
25€245,4765.78%