Calculator · Stage 2 & 4

Real Estate vs ETF After-Tax Return

Most comparisons ignore taxes and leverage. This tool models a side-by-side, after-tax liquidation event of a rental property versus an index fund at the end of a holding period.

General Assumptions

Initial Capital to Invest ($)

Holding Period (Years)

Marginal Cap Gains Rate (%)

Real Estate Assumptions

Down Payment (%)

Annual Appreciation (%)

Net Cash Flow per Year ($)

Principal Paydown per Year ($)

Selling Costs at Exit (%)

ETF Assumptions

Annual Growth Rate (%)

Annual Dividend Yield (%)

Highest After-Tax Wealth

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Real Estate

Property Purchase Price—

Future Sale Price—

Accumulated Cash Flow—

Mortgage Payoff—

Selling Costs—

Capital Gains & Recapture Tax—

Final Net Proceeds—

After-Tax CAGR (IRR)—

Index Fund (ETF)

Initial Investment—

Future Value (with reinvestment)—

Total Dividends Taxed—

Capital Gains Tax at Sale—

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Final Net Proceeds—

After-Tax CAGR—

Why leverage matters:

Real estate usually wins over time because your growth is based on the total property value, not just your initial down payment. A 3% growth on a $400k house is $12k. A 7% growth on your $100k ETF is only $7k. The trade-off is liquidity, effort, and concentration risk.