Rental Property ROI Calculator for Puerto Vallarta & Riviera Nayarit Real Estate
Run the return on investment on any rental property in Puerto Vallarta, Nuevo Vallarta, Bucerías, Punta de Mita or Sayulita the way our agents do it for clients: cash-on-cash return, cap rate, yearly cash flow and break-even, with Mexican closing costs, the state lodging tax and the real IVA and income-tax rules for foreign and resident owners built in. Free, no sign-up, works for short-term (Airbnb-style) and long-term rentals.
Puerto Vallarta & Nayarit Rental Property ROI Calculator
Compare short-term and long-term rental strategies for real estate in Puerto Vallarta, Jalisco and the Riviera Nayarit
Investment Analysis Results
Investment Summary
Annual Income
ROI Metrics
OCCUPANCY ANALYSIS (SHORT-TERM)
Introducing the Mexico Life Realty Investment Property ROI Calculator
Unlock the potential of real estate investment in Mexico with our comprehensive ROI Calculator, designed to provide investors with a detailed financial analysis of property investment opportunities. This powerful tool offers an in-depth look at the potential returns for both short-term and long-term rental strategies.
Key Features:
- Flexible Rental Strategy Analysis: Toggle between short-term and long-term rental projections
- Comprehensive Financial Modeling: Calculate potential income, expenses, and key financial metrics
- Detailed Seasonal Breakdown: Examine income potential across high, mid, and low seasons
- Tax and Expense Considerations: Factor in IVA, income tax, property management, and other critical expenses
Important Disclaimer:
This ROI calculator is a strategic planning tool intended to provide investors with a comprehensive overview of potential property investment scenarios. While we strive for accuracy, the calculations and projections should be considered estimates only.
Actual financial outcomes may vary significantly based on:
- Local market conditions
- Specific property characteristics
- Unexpected expenses or income fluctuations
- Changes in tax regulations
- Individual property management strategies
We Strongly Recommend:
- Consulting with a local accountant or financial advisor
- Conducting thorough due diligence
- Verifying all financial assumptions with local experts
- Considering multiple scenarios and potential variations
The Mexico Life Realty ROI Calculator offers a starting point for your investment analysis, providing insights to help you make more informed decisions. However, it should not be considered a definitive financial forecast or professional financial advice.
Invest Wisely. Invest Informed.
How to use the calculator
Start with the asking price
Closing costs on Puerto Vallarta and Riviera Nayarit real estate usually land between 5 and 8 percent of the price, including the notary, the acquisition tax and, for foreign buyers on the coast, the bank trust (fideicomiso) set-up. Leave the default if you do not have a quote from the notary yet, then add renovation and furnishing if you plan to rent furnished.
Use rent you can prove
Choose short-term or long-term. For short-term, enter a nightly rate and occupancy for each season. Ask us for the rental history of the building you are considering; the spread between buildings in the same town is large, and a condo in the Romantic Zone, Marina Vallarta, Nuevo Vallarta or Punta de Mita will not rent like one three streets away.
Read cash-on-cash first
It is the return on the money you actually put in. Cap rate ignores your financing, so a leveraged purchase can look better on cap rate than it feels on your bank balance.
What the results mean
Net operating income
Gross rent minus vacancy, HOA fees, utilities, maintenance, management, cleaning costs, property tax and insurance. This is the property's income before financing and before income tax.
Cash flow
Net operating income minus any IVA you cannot pass on, income tax under the regime you selected, and mortgage payments. Positive cash flow means the property pays you every year; negative means you are paying to hold it.
Cap rate and rental yield
Rental yield is gross income over total investment. Cap rate is net operating income over total investment. Both let you compare properties regardless of how each is financed.
Break-even point
The number of years of cash flow it takes to recover the total cash invested. It does not include appreciation or the equity you build by paying down a loan.
How rental property ROI is calculated for Puerto Vallarta and Nayarit real estate
The calculator uses the four measures investors and lenders use everywhere, applied with the costs and taxes that are specific to real estate in Puerto Vallarta, Jalisco and Bahía de Banderas, Nayarit. Every formula is shown so you can check the result by hand.
| Measure | Formula | What it tells you |
|---|---|---|
| Gross rental yield | Gross annual rent ÷ total investment | Headline return before any cost. Useful only for comparing buildings. |
| Net operating income | Gross rent − vacancy − HOA − utilities − maintenance − management − cleaning − predial − insurance | What the property earns before financing and income tax. |
| Cap rate | Net operating income ÷ total investment | Return on the whole asset, independent of how you paid for it. |
| Cash flow | Net operating income − IVA you cannot pass on − ISR − mortgage payments | What actually lands in your bank account each year. |
| Cash-on-cash return | Cash flow ÷ cash you put in (down payment + closing + renovation + furnishing) | The return on your own money. Read this one first. |
| Break-even | Cash invested ÷ yearly cash flow | Years of cash flow to recover the cash invested, before appreciation. |
Costs that are specific to Puerto Vallarta and Riviera Nayarit rental property
- Closing costs of roughly 5 to 8 percent of the price, higher than in the United States or Canada because they include the acquisition tax and notary fees.
- Bank trust (fideicomiso) fees for foreign owners in the coastal restricted zone: a set-up fee at closing and an annual fee to the bank. Add the annual fee to your insurance line.
- Predial, the municipal property tax, is charged on the cadastral value and is usually a small amount compared with property tax in the US or Canada. Enter last year's bill.
- HOA fees in condo buildings, which in Puerto Vallarta and Nuevo Vallarta often include water, security and pool and gym upkeep. Ask for the building's fee schedule.
- State lodging tax on short-term stays: 5 percent in Nayarit and, since 1 January 2026, 5 percent in Jalisco too (Ley de Ingresos del Estado de Jalisco 2026, Art. 12; it was 3 percent through 2024 and 4 percent in 2025), charged to the guest and remitted by the platform.
- Puerto Vallarta platform levy (derecho de saneamiento ambiental): from 2026 the municipality charges owners who rent through Airbnb, Booking, Vrbo and similar platforms MXN 56.57 per occupied night, 50 percent of the daily UMA (Ley de Ingresos de Puerto Vallarta 2026, approved 28 November 2025). It is an owner cost, so the calculator adds it to operating expenses when the property is in Jalisco and rented short-term. Nayarit municipalities have no equivalent charge as of September 2026.
- Mexican income tax and IVA, which depend on whether the owner has a Mexican RFC. The calculator applies the rules for each case; see the tax question below.
For actual sale prices and rents by neighbourhood, see our Puerto Vallarta and Riviera Nayarit market reports, built from the Vallarta-Nayarit MLS. To model a loan, use the Mexico mortgage calculator. To understand how a foreigner holds title on the coast, read our fideicomiso guide.
Cap Rate Calculator for Puerto Vallarta and Riviera Nayarit Real Estate
Cap rate (capitalization rate) is a property's net operating income divided by its price, expressed as a percentage. It measures what the asset earns before financing and income tax, so it is the fastest way to compare two condos or houses in Puerto Vallarta, Nuevo Vallarta, Bucerías, Punta de Mita or Sayulita regardless of how each one is paid for. Enter three numbers to get the cap rate; use the full ROI calculator above for cash flow after Mexican taxes and a mortgage.
Gross rental yield on price: 12.0%. Formula: cap rate = (gross rent − operating expenses) ÷ price × 100. All-in cost adds closing costs to the price. Updates as you type.
Cap rate formula, with a Puerto Vallarta example
A furnished two-bedroom condo bought for $250,000 that grosses $30,000 a year in rent and costs $12,000 a year to operate has a net operating income of $18,000. Divide by the price and the cap rate is 7.2 percent. Add 6 percent closing costs and the all-in cost is $265,000, so the cap rate on the money actually spent is 6.8 percent. That second figure is the one to compare against a listing's asking price, because closing costs in Mexico are higher than in the United States or Canada.
What is a good cap rate in Puerto Vallarta and the Riviera Nayarit?
Furnished condos run as short-term rentals in good buildings typically show cap rates of about 5 to 8 percent on the asking price before income tax and financing; long-term rentals sit lower, around 4 to 6 percent, with far less seasonality. A cap rate above 8 percent on the coast usually means an optimistic rent assumption or an HOA that has not yet restricted nightly rentals, so check the building's actual booking history before you rely on it. For context, Global Property Guide put the average gross rental yield for apartments across Mexico at 6.06 percent in December 2025, with Cancún lowest at 4.36 percent.
Cap rate versus cash-on-cash return
Cap rate ignores how you paid. Cash-on-cash return divides the yearly cash flow, after mortgage payments and Mexican income tax, by the cash you put in. Pay cash and the two converge; borrow at a rate above the cap rate and cash-on-cash falls below it. Use cap rate to shortlist properties and cash-on-cash to decide.
Frequently asked questions
What is a good ROI for a rental property in Puerto Vallarta?
Most investors we work with target a cash-on-cash return of 6 to 10 percent on a furnished condo in Puerto Vallarta or on the Riviera Nayarit. Independent 2025 and 2026 analyses of Puerto Vallarta vacation rentals report gross yields of roughly 6 to 10 percent of the property value and net yields of about 4 to 7 percent after operating costs, management and taxes, with long-term rentals lower and steadier. Short-term rentals in high-demand buildings can run higher in a strong season, and lower when a building's HOA limits nightly rentals. Judge the number against the building's real rental history, not a listing brochure.
Does this calculator work for real estate in Nayarit as well as Puerto Vallarta?
Yes. Select the property's state in the Tax step. Puerto Vallarta is in Jalisco, where the state lodging tax is 5 percent from 2026 (it was 4 percent in 2025 and 3 percent before); Nuevo Vallarta, Bucerías, La Cruz de Huanacaxtle, Punta de Mita, Sayulita and San Pancho are in Bahía de Banderas or Compostela, Nayarit, where it is also 5 percent. Federal taxes, closing costs and the fideicomiso rules are the same on both sides of the state line.
Cash-on-cash return versus cap rate: which one should I use?
Cash-on-cash return is the yearly cash flow divided by the cash you actually put in, so it reflects your financing. Cap rate is net operating income divided by the total purchase cost and ignores financing. If you are paying cash the two converge; with a mortgage, cash-on-cash is the number that matches your bank balance.
What taxes does a foreigner pay on rental income from Puerto Vallarta or Nayarit real estate?
It depends on whether the owner has a Mexican RFC, so the calculator asks. A foreign owner with no Mexican RFC pays 25 percent income tax on gross rent with no deductions (LISR Art. 158); on Airbnb-type platforms the platform withholds 20 percent ISR plus the full 16 percent IVA at source (LISR Art. 113-A, LIVA Art. 18-J), and that IVA is a real cost. A Mexican tax resident with an RFC adds 16 percent IVA to the guest's price, so it is not a cost, and pays ISR on net income under the annual progressive tariff of 1.92 to 35 percent (LISR Art. 152) after deductions such as predial, maintenance, insurance, management, cleaning and real mortgage interest, or the optional 35 percent blind deduction (LISR Art. 115). Long-term unfurnished housing is exempt from IVA; furnished rent is not (LIVA Art. 20-II). The state lodging tax, 5 percent in both Nayarit and Jalisco for 2026, is charged to guests. Puerto Vallarta owners renting through platforms also pay the municipal saneamiento ambiental levy of MXN 56.57 per occupied night from 2026, which the calculator treats as an operating expense. Confirm your own position with a Mexican accountant before you buy.
How much are closing costs on Puerto Vallarta and Riviera Nayarit real estate?
Plan on 5 to 8 percent of the purchase price. That covers the acquisition tax, notary fees, registration, appraisal and, for a foreign buyer in the coastal restricted zone, the permit and set-up of the bank trust (fideicomiso). The calculator's closing-cost field is a percentage so you can enter the notary's quote once you have it.
How much is property tax (predial) in Puerto Vallarta and Nayarit?
Predial is a yearly municipal tax on the cadastral value of the property, which is normally well below market value, so the bill is small compared with property tax in the United States or Canada. Puerto Vallarta and Bahía de Banderas both offer a discount for paying early in the year. Enter the actual amount from last year's receipt; the seller or the building administrator will have it.
How do the high, mid and low seasons work?
The short-term model splits the year into a five-month high season from December to April, a two-month mid season in May and November, and a five-month low season from June to October. Each has its own nightly rate and occupancy so the projection follows the way bookings actually fall in Puerto Vallarta and Riviera Nayarit.
Can I print or save the analysis?
Yes. After you calculate, use Print This Analysis to produce a one-page report with the inputs, the tax basis, the annual numbers, the ROI metrics and the occupancy chart. Save it as a PDF from the print dialog and send it to your accountant or lender.
What is a good cap rate for a rental property in Puerto Vallarta?
Furnished condos run as short-term rentals in well-located Puerto Vallarta and Riviera Nayarit buildings typically show a cap rate of about 5 to 8 percent on the asking price, before income tax and financing. Long-term rentals usually sit around 4 to 6 percent. Anything above 8 percent on the coast deserves a hard look at the rent assumption and the building's rental rules. Cap rate is net operating income divided by price; use the cap rate calculator on this page to check a listing in seconds.
What is the average rental yield in Mexico?
Global Property Guide's December 2025 research put the average gross rental yield for apartments in Mexico at 6.06 percent, with Mérida and Puebla highest at 6.64 percent, Mexico City at 6.55 percent and Cancún lowest at 4.36 percent. Puerto Vallarta and the Riviera Nayarit are not in that survey; from the rental histories we see, gross yields of 6 to 10 percent and net yields of 4 to 7 percent are typical for furnished condos, with a strong high season from December to April.