Calculator
Replacement Property Comparison
Model a hypothetical replacement property beside the one you own. The point isn't to make the replacement look good — it's to see whether the trade actually improves anything that matters to you.
| Measure | Current property | Replacement |
|---|---|---|
| Equity / capital in the property | $1,500,000 | $1,400,000 |
| Net operating income | $35,840 | $68,900 |
| Cap rate | 2.39% | 4.92% |
| Annual pre-tax cash flow | $35,840 | $68,900 |
| Operating return on equity | 2.39% | 4.92% |
| Cash return on equity | 2.39% | 4.92% |
| Debt coverage ratio | No debt | No debt |
| Cash invested | — | $1,425,000 |
| Cash-on-cash return | — | 4.84% |
| First-year principal reduction | — | $0 |
Important: These calculations are for general educational and planning purposes only. They aren't an appraisal, tax calculation, legal opinion, investment recommendation or guarantee of results. Tax basis, depreciation, exchange eligibility and tax consequences can vary substantially based on individual facts. Review your specific situation with your CPA, attorney, qualified intermediary and other appropriate professionals before acting.
The best replacement property is the one you'd still want in ten years.
Tax deferral is a benefit, not a reason. If the replacement doesn't fit your goals, the exchange isn't a win.