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 appreciation slider starts at zero on purpose.
The property
Andalucía: 7% ITP plus notary, registry and legal fees.
Rental income
Weeks empty between tenants, as a share of the year.
Running costs
Long-term lets run 8–12%; short-term 20–30%.
Financing
Spanish banks: up to 80% for residents, 60–70% for non-residents.
The exit
Starts at zero deliberately. This is your assumption, not our projection — move it and see how much of the result depends on it.
Why the growth slider starts at zero
A calculator that assumes appreciation for you is selling something.
Expected price growth is the single assumption that can make any property look like a good one, and it is the one nobody can verify in advance. So start at zero: see whether the investment works on rental income and mortgage amortisation alone. Then move the slider and watch how much of the result was resting on a number you chose rather than on the property you bought.
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 selling 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 assumption start at zero?
Because expected price growth is an assumption, not a fact. Starting at zero shows whether a property works on income and amortisation alone, before any growth is underwritten.
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 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.