What's a good rental yield in Iraq?

Gross rental yields in Baghdad and Erbil typically run 6-10 percent on residential property, with commercial space sometimes hitting 12 percent. Net yields after maintenance, vacancy, taxes, and service charges usually land 2-3 percentage points below gross — so target 5-7 percent net to break even against Iraqi-dinar inflation and bank-deposit alternatives.

How does mortgage financing change ROI in Iraq?

Iraqi banks offer murabaha or ijara financing at roughly 7-9 percent annual profit, typically requiring a 30-50 percent down payment. Leverage amplifies cash-on-cash return when rent exceeds the financing cost — but also amplifies losses when it doesn't. This calculator splits gross yield from cash-on-cash return precisely to make that tradeoff visible.

Are appreciation projections in this tool reliable?

No — they're a planning tool, not a forecast. Iraqi residential property has appreciated unevenly: Baghdad central districts ran 8-12 percent annual growth in the 2010s, then flat-to-down in 2020-2022. The CAGR shown blends rent and resale assuming a smooth path; reality is lumpier. Stress-test by trying 0 percent appreciation alongside your optimistic number.

Real Estate ROI Calculator — The Iraqi Investor

Purchase price

Annual gross rent

Annual operating expenses

Down payment (optional)

Financing (if using a loan)

Loan amount

Annual markup / profit rate (%)

Loan term (years)

Resale projection (optional)

Annual appreciation (%)

Holding period (years)

Gross yield

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Net yield

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Cap rate

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Annual net income

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Monthly payment (principal + interest)

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Cash flow after debt service

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Cash-on-cash return

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Simple payback

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Projected resale value

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Total return

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Annual return

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Net income is the annual rent minus operating expenses. The financing section computes a standard monthly principal-and-interest payment (or profit payment, for murabaha / ijara) and subtracts it from the net income to show cash flow after debt service. The resale projection compounds the property value by the appreciation rate and annualises the total return using CAGR — this is an unguaranteed forecast, not advice.

This calculator is for educational purposes only and is not investment advice. Rates shown are assumed values and do not guarantee future returns.