Calculator Methodology

EMI (Equated Monthly Instalment)

The standard amortisation formula used by all UAE banks:

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

Where P = loan amount (price minus down payment), r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = total months (years × 12). When r = 0 the formula reduces to P ÷ n.

Used by: Mortgage Calculator, Affordability Calculator, Investment Calculator, Refinance Calculator, Cash vs Mortgage Calculator, Buy vs Rent Calculator, Rental Yield Calculator (cash-on-cash mode).

Dubai upfront fee structure

Standard fee schedule applied across all buying-related calculators:

• 4% DLD transfer fee — Dubai Land Department, mandatory for all freehold transfers
• AED 580 DLD admin fee — flat administrative charge
• 2% agent commission + 5% VAT — standard buyer-side commission
• AED 4,000 DLD trustee fee — typically split 50/50 with seller
• AED 2,500 valuation fee — required for mortgaged purchases
• 0.25% mortgage registration + AED 290 admin — DLD mortgage registration
• ~1% processing fee — varies by lender
• AED 1,500-5,000 NOC fee — developer-issued, varies

Total: roughly 6-8% of property price for mortgaged purchases, 5-6% for cash purchases.

Used by: Mortgage Calculator, Buying Cost Calculator, Investment Calculator.

Debt Burden Ratio (UAE Central Bank)

The Affordability Calculator caps total monthly debt service at the user-selected DBR (35-50%). Per UAE Central Bank rules, lenders cannot extend new credit beyond 50% of gross monthly income. The maximum loan derives from the maximum EMI by reversing the EMI formula:

P = EMI × ((1 + r)ⁿ − 1) ÷ (r × (1 + r)ⁿ)

Maximum property price is then loan ÷ (1 − down payment %).

RERA rent increase brackets (Decree 43 of 2013)

The maximum legal rent increase on lease renewal depends on how far the current rent is below the RERA Rental Index average for similar properties:

IRR (Internal Rate of Return)

Computed via Newton-Raphson iteration on the cash-flow stream. The IRR is the discount rate at which the net present value of all cash flows equals zero:

0 = Σ (CFₜ ÷ (1 + IRR)ᵗ)  for t = 0 to N

For a Dubai investment property: CF₀ = −(down payment + closing costs); CF₁..CF(N-1) = annual net cash flow; CFₙ = annual cash flow + net sale proceeds at exit.

Net yield vs gross yield vs cash-on-cash

• Gross yield = annual rent ÷ property price
• Net yield = (annual rent − operating expenses) ÷ property price. Operating expenses = service charge × sqft + vacancy loss + maintenance reserve + management fee + insurance.
• Cash-on-cash return = annual cash flow (NOI − annual mortgage payment) ÷ cash invested (down payment + closing costs).

Property appreciation

Compound growth: future value = current price × (1 + r)ʸ. Three scenarios run automatically (bear/base/bull) to stress-test outputs.

Golden Visa thresholds

• 10-year Golden Visa: AED 2,000,000+ in property equity (across one or multiple UAE properties)
• 2-year Property Investor Visa: AED 750,000+ in property equity
• Mortgaged properties qualify only on the self-financed equity portion
• Off-plan qualifies once 50%+ paid + handover within 3 years

VAT treatment

• Residential rent: zero-rated (0% VAT). No registration required.
• Commercial rent: standard 5% VAT. Mandatory FTA registration when annual taxable supplies ≥ AED 375,000.
• Sale of new residential: zero-rated for first supply.
• Sale of subsequent residential: exempt.

Sources & references

• Dubai Land Department — fees + transactions
• RERA — rental index + Decree 43
• UAE Central Bank — DBR + LTV regulations
• Federal Tax Authority — VAT registration thresholds
• ICP — Golden Visa eligibility
• DTCM / DET — Holiday Home permits

Limitations

These calculators are decision-support tools, not substitutes for professional advice. Specific bank quotes, DLD fee changes, regulatory updates, and individual circumstances will affect actual outcomes. Always confirm with a RERA-registered agent and your lender before transacting. The site is updated annually as regulations change.