Commercial property
Cash Flow Calculator
Net yield
5.31%
Net rent (annual)
$65,000
Capital growth
$73,500
Management fee
$0
| Scenario | Interest | Cash return | Total return |
|---|---|---|---|
| Cash buy | $0 | $65,000 | $138,500 |
| 70.0% LVR @ 6.5% | $55,738 | $9,263 | $82,763 |
| 80.0% LVR @ 6.5% | $63,700 | $1,300 | $74,800 |
| 100.0% LVR @ 6.5% | $79,625 | -$14,625 | $58,875 |
| 105.0% LVR @ 6.5% | $83,606 | -$18,606 | $54,894 |
| 70.0% LVR @ 7.5% | $64,313 | $688 | $74,188 |
| 80.0% LVR @ 7.5% | $73,500 | -$8,500 | $65,000 |
| 100.0% LVR @ 7.5% | $91,875 | -$26,875 | $46,625 |
| 105.0% LVR @ 7.5% | $96,469 | -$31,469 | $42,031 |
| 70.0% LVR @ 8.5% | $72,888 | -$7,888 | $65,613 |
| 80.0% LVR @ 8.5% | $83,300 | -$18,300 | $55,200 |
| 100.0% LVR @ 8.5% | $104,125 | -$39,125 | $34,375 |
| 105.0% LVR @ 8.5% | $109,331 | -$44,331 | $29,169 |
Break-even LVR (cash-flow neutral)
The highest loan-to-value ratio that keeps annual cash flow neutral at each interest rate. Borrow below it and the property is cash-flow positive; above it, it needs topping up.
6.5% interest
81.63%
Borrow at or below this LVR to stay cash-flow neutral or better.
7.5% interest
70.75%
Borrow at or below this LVR to stay cash-flow neutral or better.
8.5% interest
62.42%
Borrow at or below this LVR to stay cash-flow neutral or better.
Tap any scenario row above to see its breakdown below.
Cash-flow bridge
Where the rent goes
70.0% LVR @ 6.5%
Net rent
$65,000
Interest
-$55,738
Cash return
$9,263
Capital growth
$73,500
Total return
$82,763
Capital stack
Deposit vs loan
70.0% LVR @ 6.5%
70% geared
Deposit$367,500
Loan$857,500