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 @ 5.5% | $47,163 | $17,838 | $91,338 |
| 80.0% LVR @ 5.5% | $53,900 | $11,100 | $84,600 |
| 100.0% LVR @ 5.5% | $67,375 | -$2,375 | $71,125 |
| 105.0% LVR @ 5.5% | $70,744 | -$5,744 | $67,756 |
| 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 |
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.
5.5% interest
96.47%
Borrow at or below this LVR to stay cash-flow neutral or better.
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.
Tap any scenario row above to see its breakdown below.
Cash-flow bridge
Where the rent goes
70.0% LVR @ 5.5%
Net rent
$65,000
Interest
-$47,163
Cash return
$17,838
Capital growth
$73,500
Total return
$91,338
Capital stack
Deposit vs loan
70.0% LVR @ 5.5%
70% geared
Deposit$367,500
Loan$857,500