Where your rent goes: cash flow and profit — map — T3 in Melun — réel foncier · ID 05Réel 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 €10,450 − costs €3,300 − loan payments €9,458 = €2,308 short before tax; + tax credit €3,210 = €901.79 of cash after tax; + €4,162 of capital repaid = €5,064 of profit after tax (48.45% 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.