A financial tool designed to estimate costs and potential returns associated with property investments assists individuals in evaluating different scenarios. For instance, this kind of tool can help determine mortgage affordability, rental income potential, or return on investment for a specific property.
Using such a tool offers advantages in the real estate investment process. It can clarify complex financial calculations, providing insights into profitability and risk, and aiding in informed decision-making. Historically, simplified methods were used; however, the introduction of digital versions has significantly enhanced accuracy and accessibility.