Where should your next $100k go?

Net rent yield

Net operating income — rent after property tax, insurance, maintenance, management and vacancy, but before the mortgage — as a percent of the property’s value. Each year it’s applied to the current value, so rent grows with appreciation while the mortgage payment stays fixed. Use the calculator in the Real estate column, or type a rate directly.

CAGR — compound annual growth rate

The single constant yearly rate that grows your invested cash into the ending net wealth. It already bakes in leverage, debt cost and time — the cleanest way to compare the three options — but it says nothing about risk or volatility.

The Your business calculator works it the practical way round: return on capital = net profit ÷ capital. Reinvested each year, that profit compounds your equity at the same rate — e.g. $18,000 of net profit on $100,000 is an 18% return, which (reinvested) grows to about $523,000 over 10 years, with year-10 profit near $80,000.

Total interest paid

Real estate (amortizing): each year, interest = remaining balance × rate, summed across the hold. As principal is paid down, the yearly interest falls.

Equities & business (interest-only): the loan isn’t paid down during the hold, so total interest = balance × ((1 + rate) ^ years − 1).

Leverage & ending wealth

Your capital is the down payment, so a smaller % controls a larger asset. The asset grows at its return rate, debt cost is subtracted, and for real estate the rental cashflow (which can be negative early on) and principal paydown are included. Ending wealth = end asset value − remaining debt + cumulative cashflow.