Investment property calculator
Cash flow, IRR, and ROI on your Czech property — with mortgage, taxes, and exit after N years.
Investment parameters
Price, mortgage, rent, horizon — results update instantly.
15 % is the individual standard — on the difference between rent minus deductible expenses. 0 % for specific exemptions. 21 % for s.r.o. (LLC) and similar.
Results
Cash flow by year
Income, expenses and net cash flow year by year. Property value and your equity.
| Rok | Income | Costs | Cash flow | Value | Equity |
|---|
Czech investment property — full breakdown
This calculator simulates your buy-to-let investment year by year and computes the metrics that matter for an actual decision: IRR (internal rate of return), ROI, year-by-year cash flow, and net proceeds at exit.
What is IRR and why it matters
Internal Rate of Return is the annual return on your invested capital after accounting for all cash flows in time. If IRR > mortgage rate, leverage is working for you — borrowed money is earning more than you pay for it. If IRR > 7–8 %, it's a strong investment in current Czech context.
What's included in cash flow
- Income: rent (with annual growth) minus vacancy (5 %)
- Operating costs: SVJ/maintenance (your input), property tax (0.5 % annual of value), maintenance reserve (1 % annual)
- Mortgage: interest and principal, computed monthly
- Income tax: 15 % on (rent − costs − mortgage interest)
- At exit: sale price − 3 % fees − capital gains tax (if applicable) − mortgage payoff
Capital gains tax — when it's 0 %
In Czech Republic, the sale of a property is exempt from income tax if either:
- You lived in it for at least 2 years immediately before sale, or
- You owned it for at least 10 years (since 2021; previously 5 years), or
- You use the proceeds for your own housing within 1 year
Otherwise, the gain (sale price − purchase price) is taxed at 15 % for individuals.
What people ask most
What's a good IRR for property investment in Czech Republic?
In current Czech Republic, 6–8 % is good, 8 %+ is excellent. If IRR < 5 %, the investment doesn't beat the average equity market (S&P 500 historically gives ~8 %). If IRR > mortgage rate (~4.4 %), leverage is working — borrowed money is earning more than you pay for it.
How do banks treat investment mortgages?
Investment mortgages in Czech Republic typically carry +0.3–0.5 % higher rates and require higher down payment (typically 30 %, sometimes 20 %). Banks count 60–80 % of expected rent toward your DSTI/DTI calculation. Some banks (Hypoteční banka, mBank) are friendlier; KB tends to be stricter.
What's vacancy and why include it?
Vacancy = the time the property sits empty (between tenants, repairs, seasonal). Realistically 5–10 % per year. If you don't account for it, your real return will be that much lower than the calculation suggests.
What if property prices fall after 5 years?
If you sell during a downturn, you lose the appreciation portion of your return (the calculator assumes constant growth). Rental cash flow continues, partially offsetting. For a sensitivity check, set "0 % appreciation" and see the result without capital gains.
Can I deduct mortgage interest from tax?
For rental income (§ 9 ZDP) yes — interest is a deductible expense. It reduces your rental tax base. This calculator includes it automatically when computing the tax owed each year.
What's better — flat-rate, actual expenses, or LLC structure?
For rental: 30 % flat-rate (simple, but excludes mortgage interest from deductions) or actual expenses. With high-interest mortgage, actual usually wins. For larger portfolios, an s.r.o. (LLC) at 21 % corporate tax can save money. Consult a tax advisor before your first filing.
How realistic is 3 % annual property appreciation?
Long-term Czech average is 3–4 %. Prague and Brno historically 4–6 %. Smaller cities 2–3 %. Short-term varies wildly — 2008–2013 was flat or negative, 2020–2022 saw 30 %+ jumps. For long-horizon planning use 3 % as conservative.