ADU Payback Calculator

Estimate an accessory dwelling unit’s annual operating income, simple yield, payback period and five-year net cash result from your own project and rent assumptions.

Quick answer

ADU Payback Calculator

This is a simple operating-payback model. It deliberately does not assume appreciation, rent growth or tax treatment.

Formula: Annual operating income = annual rent after vacancy − operating costs. Simple payback = project cost ÷ annual operating income.

Total ADU project cost ($)Construction, design, permit and utility costs you want included.Monthly rent ($)Expected monthly rent.Vacancy allowance (%)Share of scheduled rent you expect to lose to vacancy.Monthly operating costs ($)Maintenance, utilities you pay, management and recurring costs.Other annual costs ($)Insurance/tax increment or other annual costs you want included.

Enter your numbers and calculate.

How the calculation works

Annual operating income = annual rent after vacancy − operating costs. Simple payback = project cost ÷ annual operating income.

Every rate, percentage, cost and value assumption shown in the calculator can be changed. Results are scenario math based on your inputs, not quotes, appraisals, code determinations or predictions.

Questions people ask

What is simple payback?

Project cost divided by annual operating income. It estimates how many years of the entered operating income equal the initial project cost.

Does this include property appreciation?

No. The model stays focused on cash operating results.

Can I model vacancy?

Yes. The vacancy allowance reduces scheduled annual rent before expenses.