Capital Gain (Year 1)
Dollar amount of property appreciation in the first year.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
See Your Own Properties
With the Rental Property Calculator™, you can run this calculation against your own rental properties using your real numbers.
Capital Gain (Year 1) Formula
What This Means
A sample property priced at $385,000 with $2,850/month rent has a capital gain (year 1) of $11,550. A 3% appreciation rate on a $300,000 property generates $9,000 in capital gain — but if you only invested $60,000 cash, that represents a 15% return on your equity from appreciation alone. This metric makes the leverage amplification tangible in dollar terms.
Where This Value Comes From
Capital Gain (Year 1) is not entered directly — it is calculated from Property Value and Appreciation Rate. See the formula breakdown above and the detailed inputs below.
Calculated From
Capital Gain (Year 1) is calculated using these inputs:
Platform Distribution
Unlock Platform Benchmarks
See the average, median, and where your property ranks among 105 properties on the platform.
Unlock Rental Property CalculatorWhy It Matters
A 3% appreciation rate on a $300,000 property generates $9,000 in capital gain — but if you only invested $60,000 cash, that represents a 15% return on your equity from appreciation alone. This metric makes the leverage amplification tangible in dollar terms.
Detailed Explanation
Capital Gain (Year 1) converts your appreciation rate into actual dollars by multiplying the current property value by the annual appreciation rate. While the rate might seem small, the leverage effect means this gain is earned on the entire property value, not just your equity.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Total Equity Current
2Current equity position (property value minus loan balance).
Equity From Appreciation (Year 1-5)
VCumulative equity gained from property value appreciation over 5 years.
Equity From Loan Paydown (Year 1-5)
VCumulative equity built from mortgage principal payments over 5 years.
Total Wealth Building Year 1
WCombined cash flow, appreciation, and principal paydown in Year 1.
Total Wealth Building Year 5
XCumulative wealth created from all sources over 5 years.
Net Worth Impact Year 1
WTotal impact on your net worth from this property in Year 1.
Run This Calculation on Your Property
Get instant results for all 166 calculations by entering your property details into the Rental Property Calculator.
View Pricing