INVESTOR TOOLS / 07 OPPORTUNITY COST

Opportunity cost calculator

Compare two investment properties side by side. See what each could be worth, plus the rent after costs, and what you give up by choosing one over the other.

Licence 092247L 5.0 from 148 Google reviews
YOUR NUMBERS
Years held
PROPERTY A
Price
Rent a year
Costs a year
Growth a year
PROPERTY B
Price
Rent a year
Costs a year
Growth a year
THE COST OF CHOOSING THE WEAKER PROPERTY
Property A total return
Property B total return

Growth and rent both count. A higher yield can still lose to stronger growth.

Compare real properties with us

How is opportunity cost worked out?

For each property, grow the price by its yearly growth rate for the years held. Add the rent after costs for each year. That is the property's total return.

The opportunity cost is the difference between the two totals: what the weaker choice costs you.

THE FORMULA
Total =
price × (1 + growth)years
+ years × (rent − costs)

Opportunity cost =
total A − total B

What this calculator leaves out

Loan and tax

Interest, deductions and tax on sale change both totals. Speak with your accountant.

Risk

A higher growth assumption is only worth it if it is realistic. Past growth is not a reliable guide.

Buying costs

Stamp duty differs by state and price, so include it if the two properties are in different states.

Want real numbers on a real property?

Most of the investment properties we secure for clients are bought off market or pre market. Book a strategy call and we'll run your plan with you.

Book A Strategy Call

Opportunity cost calculator FAQ

What is opportunity cost in property?

It is what you give up by choosing one property over another: the extra value and income the other one could have earned.

Is a higher rental yield always better?

Not always. A property with lower rent but stronger growth can end up ahead over a long hold. This calculator shows the trade off.

Does it include rent rises?

No. Rent and costs stay the same each year, so the comparison stays simple and fair to both properties.

More investor calculators: Property growth calculator · Rental yield calculator · Break even calculator

General information only. This calculator is not financial advice and does not forecast prices. Past performance is not a reliable indicator of future performance.