Calculator
SDIRA Growth Calculator
Real Estate + Reinvested Income, Compounded
See both engines at once: a property appreciating inside your retirement account, and the net rent you reinvest compounding alongside it. Everything calculates live in your browser — nothing is sent anywhere.
Your assumptions
Total Illustrative Value after 30 years
$4,523,976
Two compounding engines: the property itself appreciates, and the net rental income you reinvest compounds separately.
- Initial real estate investment
- $400,000
- Home value after 30 years (with appreciation)
- $970,905
- Home appreciation gain
- $570,905
- Annual net rental income reinvested
- $21,600
- Compounded value of reinvested rental income
- $3,553,071
- Total illustrative value
- $4,523,976
How to read these numbers
The calculator above gives you a total. Here's how each piece of it gets there, using your current inputs.
- 1
Initial Investment
The property itself, held inside your self-directed IRA or 401(k). In this example: $400,000.
- 2
Reinvestment of Net Rental Income
Your net rental cash flow — $1,800 a month, or $21,600 a year — gets reinvested inside the account every year at an assumed 10% annual growth rate. Compounded over 30 years, that stream alone grows to $3,553,071.
- 3
Combined Outcome
The property itself is also appreciating — at 3% a year, it grows from $400,000 to $970,905. Add the two together and you get the total illustrative value above: $4,523,976.
Why this works
- Rental income creates consistent cash flow, whether the property is appreciating that year or not.
- Reinvesting that income is a second compounding engine, entirely separate from the property's own value.
- A long time horizon does most of the work — the gap between year 10 and year 30 is where compounding actually shows up.
- Property appreciation is a third layer on top of both — unlike a flat, conservative illustration, this calculator includes it, because it's real money on the table too.
Where the 10% and 15% figures come from
Investors using this strategy commonly target 10 to 15 percent cash-on-cash returns on the rental itself — deal- and market-dependent, and not guaranteed. A 10% long-term reinvestment growth rate is a commonly cited illustrative figure for diversified index funds over multi-decade periods historically, also not guaranteed. Feel free to plug in a more conservative number and see how the picture changes.
This is a hypothetical, illustrative example for educational purposes only. It does not guarantee results. Real estate and market returns are not guaranteed, involve risk, and can lose value. Consult your CPA, tax advisor, and IRA custodian before acting.
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