Where your rent goes: cash flow and profit — map — T2 in Le Mée-sur-Seine — micro-foncier · ID 03Micro-foncier
Year 1's rent: the costs, the loan interest and the tax are money lost; what is left is your profit — part of it as cash (the cash flow after tax), part of it as loan capital repaid (more of the property is yours).
- Rent
- Costs
- Loan
- Tax
- the result
Year 1: rent €7,260 − costs €2,196 − loan payments €7,094 = €2,030 short before tax; − tax €2,235 = €4,265 short of cash after tax; + €3,121 of capital repaid = −€1,144 of profit after tax (−15.75% of the rent).
What this calculation leaves out
- The capital repaid is counted twice on purpose: it leaves with the loan payments (cash) and comes back in the profit (it becomes a share of the property). The loan interest does not come back.
- The interest on your rental account (earned, or paid to a lender) and the flat tax on the interest earned are not on this chart; the tax shown is the year’s income tax and social contributions as worked out for your regime: see “Your wealth over time”.
Each amount in the worked lines is rounded to the cent, so a line can differ by €0.01.