INVESTMENT CALCULATOR

Analyze Your Lisbon Property Investment

Calculate rental yields, cash-on-cash returns, and investment scores for Lisbon properties. See how financing, expenses, and market assumptions affect your returns over 5-20 years.

ROI Analysis

Cash Flow

Market Data

Tax Estimates

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CALCULATOR

Calculate your investment returns

Select a property or add your own. Choose financing (cash or mortgage). See your investment score, yields, ROI, and 10-year projections.

Investment Analyzer

Analyze rental yields, ROI, and investment potential for Portuguese real estate

Select Property

Default rent: 1520 €/month

Or add a custom property

Financing Option

Investment Score

41out of 100

LOW RISK

Moderate investment opportunity

Key Investment Metrics

Gross Rental Yield

3.3%

Market avg: 3.5%

Return on Investment

-19.1%

Payback Period

Never (Negative Cash Flow)

Monthly Net Income

-1652 €

Cap Rate

1.3%

Market avg: 2.3%

IRR (Internal Rate of Return)

5.7%

Recommendations

✅ Premium location - chiado is a stable, high-demand area with strong long-term appreciation potential

⚠️ NEGATIVE CASH FLOW - This property will cost you money each month with current financing

Consider: higher down payment (lower mortgage), negotiate purchase price, or increase rental income

✅ Move-in ready property in prime location - ideal for immediate rental or personal use

ℹ️ Tourist area - Consider Alojamento Local (short-term rental) for higher yields, but note strict licensing requirements and regulatory changes

Property Comparison

Property	Score	Yield	ROI	Monthly Income
Modern Apartment in MarvilaMarvila, Lisbon	59	5.2%	-2.0%	-113 €
Historic Apartment in AlfamaAlfama, Lisbon	47	4.6%	-5.1%	-325 €
Luxury Villa in CascaisCascais, Lisbon District	43	3.7%	-8.8%	-1387 €
Modern Apartment in ChiadoChiado, Lisbon	41	3.3%	-10.8%	-939 €
Studio in Príncipe RealPríncipe Real, Lisbon	38	3.3%	-11.4%	-590 €
Family House in OeirasOeiras, Lisbon District	33	3.8%	-8.5%	-824 €

HOW IT WORKS

How the calculator works

Scroll through each step to explore the complete roadmap.

STEP 1

Select or add a property

Choose from sample Lisbon properties or enter your own: price, expected monthly rent, location, property type, and condition. You can override the rent amount for any property to test different scenarios.

Key Actions

Choose from sample properties or create custom
Enter property price and expected monthly rent
Select location, property type, and condition
Override rent amounts to test different scenarios

STEP 2

Choose financing

Select Cash (100% down), Mortgage 80% LTV (20% down), Mortgage 90% LTV (10% down), or configure custom terms. The calculator includes mortgage payments, insurance, and all financing costs in your returns.

Key Actions

Select Cash (100% down) for full ownership
Choose Mortgage 80% LTV (20% down) at 3.5% rate
Choose Mortgage 90% LTV (10% down) at 4.0% rate
Configure custom financing terms if needed

STEP 3

Review default assumptions (or customize)

The calculator uses realistic defaults: 95% occupancy, 2.5% annual rent increases, IMI tax 0.3%, maintenance 1%, management 8%, vacancy 5%, condominium €80/month. Open Advanced Settings to adjust any of these assumptions.

Key Actions

Review default occupancy rate (95%)
Check annual rent increase assumption (2.5%)
Verify expense defaults (IMI, maintenance, management)
Open Advanced Settings to customize assumptions

STEP 4

Understand your results

The calculator shows: Investment Score (0-100) based on yield, ROI, payback period, and location; Gross & Net Rental Yields; ROI (Cash-on-Cash Return) = annual profit ÷ cash invested; Monthly Net Income after all expenses; Payback Period = years to recover your down payment.

Key Actions

Review Investment Score (0-100)
Check Gross & Net Rental Yields
Understand ROI (Cash-on-Cash Return)
Analyze Monthly Net Income and Payback Period

STEP 5

Explore projections and compare properties

View 10-year projections showing property value growth, equity build-up, and annual cash flow (default: 3% appreciation, 2.5% inflation). Compare all sample properties side-by-side to see which offers the best investment score and returns.

Key Actions

View 10-year property value projections
Analyze equity build-up over time
Review annual cash flow projections
Compare all properties side-by-side

FEATURES

Comprehensive investment analysis

Monthly & Annual Cash Flow

See your monthly net income after mortgage payments, IMI tax, maintenance, management fees, vacancy, and condominium costs

Monthly net income (positive or negative)
Annual cash flow projections
10-year cash flow charts
Cumulative returns over time

Investment Score & ROI

Get an investment score (0-100) based on yield, ROI, payback period, neighborhood risk, and cash flow. See ROI as cash-on-cash return.

Investment score with risk level
Gross & net rental yields
ROI (cash-on-cash return)
Payback period calculation

Lisbon Market Assumptions

Built with realistic 2026 Lisbon defaults: 95% occupancy, 2.5% rent increases, 3% appreciation, Portuguese tax rates and fees

Neighborhood risk ratings
Market average yield comparisons
Customizable assumptions
Property comparison table

KEY METRICS

Understanding investment metrics

Gross Rental Yield

Annual rent as a percentage of property purchase price (before expenses)

(Annual Rent ÷ Property Price) × 100

Good Range:3.5-5.5%

Tip: This is your starting point. Premium Lisbon areas (Chiado, Príncipe Real) typically yield 3.5-4% due to high prices. Emerging areas (Marvila) can reach 5-5.5%.

Lisbon Market: The calculator uses your entered rent (or sample property rent). Occupancy rate (default 95%) affects effective rent. Prime areas yield less but appreciate faster (3-7% annually).

Net Rental Yield

Annual profit after all operating expenses, as a percentage of property price

((Annual Rent - Total Annual Expenses) ÷ Property Price) × 100

Good Range:2-3.5%

Tip: This shows your real income return. Includes IMI tax, maintenance, management, vacancy, condominium fees, mortgage payments, and amortized one-time costs (IMT, legal fees).

Lisbon Market: Default expenses: IMI 0.3%, maintenance 1%, management 8%, vacancy 5%, condominium €80/month. One-time costs (IMT 6%, legal 1.5%, notary €600) are spread over 10 years.

ROI (Cash-on-Cash Return)

Annual return on your actual cash investment (down payment + acquisition costs)

((Annual Rent - Total Expenses) ÷ Cash Invested) × 100

Good Range:4-10%

Tip: This is your most important metric if using a mortgage. Cash invested = down payment + IMT + legal fees + notary + registration. Shows how efficiently your capital works.

Lisbon Market: With 80% mortgage (20% down), achieving 6-8% ROI is realistic in good Lisbon neighborhoods. Cash purchases typically show lower ROI percentages but higher absolute returns.

Payback Period

Years to recover your cash investment through net rental income alone (ignores appreciation)

Cash Invested ÷ Net Annual Income

Good Range:18-30 years

Tip: Shorter is better, but premium areas with longer payback (25-30 years) can still outperform due to strong appreciation (3-7% annually). If negative cash flow, payback is infinite.

Lisbon Market: Premium areas: 25-30 years typical, but strong appreciation compensates. Emerging areas: 18-22 years. Under 18 years is excellent. The calculator shows "Never" if monthly net income is negative.

WHY USE THIS TOOL

Make confident investment decisions

Realistic Default Assumptions

Defaults match 2026 Lisbon reality: 95% occupancy, 2.5% rent increases, 3% appreciation, IMI 0.3%, maintenance 1%, management 8%, vacancy 5%. All customizable in Advanced Settings.

Complete Cost Accounting

Includes all Portuguese costs: IMT (6%), legal fees (1.5%), notary (€600), IMI (0.3%), condominium (€80/mo), maintenance, management, vacancy. One-time costs amortized over 10 years.

Financing Scenarios

Compare cash purchase vs. 80% LTV (3.5% rate) vs. 90% LTV (4.0% rate) mortgages. See how leverage affects ROI, cash flow, and investment score. Custom financing available.

PROFESSIONAL SUPPORT

Need expert guidance?

Connect with verified investment specialists who can help you make informed decisions in the Lisbon property market.

Find Investment Agents View Buying Guide

FAQ

Frequently asked questions

Find answers to common questions about using the investment calculator and understanding your results.

Gross yields in Lisbon range from 3.5% to 5.5% depending on location. Premium areas (Chiado, Príncipe Real) yield 3.5-4% due to high prices but offer strong appreciation (3-7% annually). Emerging areas (Marvila) can reach 5-5.5% with growth potential. After expenses (IMI, maintenance, management, vacancy, condominium), expect net yields of 2-3.5%. The calculator shows both gross and net yields, and compares your property against neighborhood averages.

ROI (shown as "Cash-on-Cash Return") = (Net Annual Income ÷ Cash Invested) × 100. Cash invested includes your down payment plus all acquisition costs: IMT (6% default), legal fees (1.5%), notary (€600), and registration fees. The calculator amortizes one-time costs over 10 years. Net annual income = annual rent minus all expenses (IMI, maintenance, management, vacancy, condominium, mortgage payments, mortgage insurance). This gives you the true return on your actual cash investment.

Ongoing expenses: IMI tax (0.3% default), insurance (0.15%), maintenance (1%), management fees (8%), vacancy (5%), condominium (€80/month default), utilities (€0, usually tenant-paid). One-time costs amortized over 10 years: IMT (6%), legal fees (1.5%), notary (€600), registration (€250). Financing costs: mortgage payments, mortgage insurance (if down payment < 20%). All defaults are customizable in Advanced Settings.

The calculator lets you compare both. Cash purchases show higher net yields but lower ROI percentages (your capital is fully invested). Mortgages (80% LTV at 3.5% or 90% LTV at 4.0%) can increase ROI through leverage but reduce monthly cash flow (often negative in premium areas). Use the financing presets to see how each option affects your investment score, ROI, and monthly net income. Premium areas often work better with mortgages due to appreciation; emerging areas may favor cash for positive cash flow.

The calculator includes sample properties from different neighborhoods. For yield-focused investors: emerging areas like Marvila (5-5.5% gross) offer higher yields. For appreciation-focused investors: Chiado, Príncipe Real offer 3-7% annual appreciation despite lower yields (3.5-4%). For balanced returns: Oeiras and Cascais combine solid yields (4-4.5%) with stable appreciation. The calculator assigns neighborhood risk ratings (low/medium/high) that affect the investment score. Use the comparison table to see how different neighborhoods score.

Payback period = years to recover your cash investment (down payment + acquisition costs) through net rental income alone. It ignores property appreciation. Premium areas like Chiado typically show 25-30 years but compensate with strong appreciation (3-7% annually). Emerging areas can achieve 18-22 years. Under 18 years is excellent. If monthly net income is negative, payback is infinite ("Never"). The calculator shows this clearly—negative cash flow means you're losing money each month.

One-time acquisition costs (IMT 6%, legal fees 1.5%, notary €600, registration €250) are amortized over 10 years in the annual expense calculation. This means if you pay €24,000 in IMT on a €400,000 property, the calculator adds €2,400 per year to your expenses for 10 years. This gives a more realistic picture of annual costs. The full amount is included in your "cash invested" for ROI calculations.

Default projection settings: 3% annual property appreciation, 2.5% annual rent increases, 2.5% inflation (affects expenses), 10-year analysis period, 4% discount rate for NPV. Income defaults: 95% occupancy rate. All assumptions are customizable in Advanced Settings → Projections and Income tabs. The calculator shows yearly projections for property value, equity, rent, expenses, and net cash flow over the analysis period.

Get expert help with your investment

The calculator shows you the numbers, but real estate investment requires local expertise. Our verified investment specialists can help you verify rent assumptions, find off-market deals, negotiate prices, and navigate Portuguese regulations.

High Returns?

Verify assumptions with experts

Negative Cash Flow?

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Need Options?

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Ready to analyze your investment?

Select a property above, choose your financing, and see your investment score, yields, ROI, and 10-year projections. Adjust assumptions in Advanced Settings to test different scenarios.

Start Analysis View All Calculators

Property

Score

Yield

ROI

Monthly Income

Modern Apartment in MarvilaMarvila, Lisbon

5.2%

-2.0%

-113 €

Historic Apartment in AlfamaAlfama, Lisbon

4.6%

-5.1%

-325 €

Luxury Villa in CascaisCascais, Lisbon District

3.7%

-8.8%

-1387 €

Modern Apartment in ChiadoChiado, Lisbon

3.3%

-10.8%

-939 €

Studio in Príncipe RealPríncipe Real, Lisbon

3.3%

-11.4%

-590 €

Family House in OeirasOeiras, Lisbon District

3.8%

-8.5%

-824 €

Get expert help with your investment

High Returns?

Verify assumptions with experts

Negative Cash Flow?

Find better opportunities

Need Options?

Access off-market deals

Analyze Your Lisbon Property Investment