Real Estate vs. Mutual Funds Comparator

Not sure whether to invest in Real Estate or Mutual Funds? Use our Real Estate vs. Mutual Funds Comparator to weigh risks, returns, and make the best choice for your portfolio.

Real Estate Investment

2% 8% 15%

Expected percentage of time the property will be vacant
Typical range: 1-3% for newer properties, 4%+ for older properties

Time Period

5 yrs 20 yrs 30 yrs

Mutual Fund Investment

4% 12% 20%
Annual fee charged by the mutual fund
Approximate tax rate on investment gains

About the Investment Comparator

This calculator helps you compare potential returns from investing in real estate versus mutual funds, taking into account various factors that affect each investment type.

1 Enter Real Estate Details

Input property value, down payment, loan terms, expected appreciation, and rental income. The advanced section lets you specify additional costs like maintenance, vacancy, taxes, and insurance.

2 Enter Mutual Fund Details

Specify your investment amount, expected return rate, expense ratio, and applicable tax rate.

3 Set Time Period

Choose how many years you want to compare these investments over, typically 5-30 years.

4 Analyze Results

Review the detailed comparison to see which investment might perform better based on your inputs and assumptions.

Real Estate vs. Mutual Funds: Key Differences
  • Leverage: Real estate allows you to control a large asset with a smaller down payment, potentially amplifying returns.
  • Passive Income: Rental properties generate monthly income, while mutual funds typically focus on growth.
  • Liquidity: Mutual funds can be sold quickly, while real estate takes time to sell.
  • Management: Real estate requires active management, while mutual funds are professionally managed.
  • Costs: Real estate has ongoing expenses like maintenance, property taxes, and insurance.
Important Note

This calculator provides a simplified comparison based on the information you provide. Actual investment performance may vary due to market conditions, location factors, tax laws, and other variables. Use this as a starting point for your investment research.




Disclaimer : The results provided by these calculators are for informational purposes only and should not be considered as financial, medical, or professional advice. The accuracy of the calculations depends on the information entered, and actual results may vary. We recommend consulting a financial advisor or healthcare professional for personalized guidance.