SOBE Knowledge
Hold & Exit ROI Calculator
Rental cash, mortgage amortisation and whatever price change you assume — measured against the equity you actually put in. The growth assumption opens at 6%. Drag it to zero and see how much of the result was resting on it.
The property
Resale: transfer tax (ITP) at the Andalusian rate, plus professional fees.
Calculated automatically from the same Andalusian rates as our purchase tax calculator. Verify the exact figure for a specific transaction.
Rental income
Weeks the property sits empty between tenants, over a full year.
Running costs
Long-term lets run 8–12% of rent; short-term 20–30%. Leave at zero if you manage the property yourself.
Financing
Spanish banks: up to 80% for residents, 60–70% for non-residents.
The exit
This is your assumption, not our projection. Set it to zero to see whether the property works on rental income and amortisation alone.
Sale-side agency commission, if any. Add it here to see the exit net of fees.
The growth assumption is yours, not ours
A calculator that hides its growth assumption is selling something.
Expected price growth is the single input that can make any property look like a good one, and it is the one nobody can verify in advance. The slider opens at 6% because that is a common working assumption on the coast — but it is a placeholder, not a forecast, and we would rather you saw it than had it buried in the maths.
So move it. Take it to zero and see whether the investment still works on rental income and mortgage amortisation alone. Two properties can show the same ROI and be completely different investments — one earning it from income, the other entirely from an assumption. The slider is there to tell them apart.
Three returns, one property
Rental cash
What the property pays you while you hold it, after costs and mortgage. Real money, banked annually, and the part that does not depend on anyone's forecast.
Amortisation
Every instalment converts a slice of debt into equity. The tenant pays the mortgage; the mortgage builds your capital. Quiet, slow and entirely reliable.
Appreciation
The part everyone talks about and nobody controls. It is real — Costa del Sol prime land is finite, and the Coastal Law keeps it that way — but it is unrealised until you sell, and transaction costs eat the first years of it.
Frequently asked questions
What is a good ROI on a property in Spain?
There is no universal target. An acceptable return depends on risk, location, financing, holding period and liquidity. A 6% return on a liquid prime asset can beat 9% on an illiquid one — and both beat a higher figure that rests on assumed growth.
Why does the appreciation slider open at 6%?
Because it is a common working assumption on the Costa del Sol, not because we forecast it. It is a placeholder you are meant to challenge: set it to zero and the calculator shows whether the property works on income and amortisation alone, before any growth is underwritten.
Why are acquisition costs subtracted if they are part of what I invested?
They are counted once, in two roles. They are added to the equity you put in — that is the money that leaves your account. They are also subtracted from the return, because taxes, notary and legal fees are not recovered when you sell. Both are the same figure seen from opposite sides of the same calculation.
How are the acquisition costs calculated?
Automatically, from the Andalusian rates used in our purchase tax calculator: transfer tax (ITP) on resale, or VAT plus stamp duty (AJD) on a new build, together with legal, notary, registry and bank costs. They are estimates — the exact figure depends on the property and the structure of the purchase.
What is the equity multiple?
Total cash returned divided by the equity you invested. 1.8x means 1.80 euros back for every euro in. Unlike annualised return, it ignores time — which is why the two are read together.
Is ROI the same as rental yield?
No. Rental yield looks only at rental income against price. ROI includes income, amortisation and any capital gain or loss over the whole holding period.
Are taxes on the exit included?
No. Figures are pre-tax. Rental income tax, capital-gains tax and plusvalia depend on your residence and circumstances, and should be modelled with an advisor.
Related
General information only — not financial, tax or legal advice, not a forecast, and not an offer. Results depend entirely on the assumptions you enter and are shown before tax. Rates, lending criteria and tax rules vary by circumstance and change over time; verify current rules with a qualified professional before making a decision.