How to use: EB-5 project cost and return calculator
EB-5 planning is not only about the investment amount. The practical question is: How much cash is tied up, for how long, and what might come back at exit?
This page models a simplified EB-5 cash-flow view so you can compare project assumptions consistently.
What the EB-5 cost and ROI results represent
The EB-5 output separates subscribed capital, case-related costs, recurring project charges, and the modeled value received at exit.
- Total cash outlay = investment principal + direct costs (attorney, government/processing, medical/background) + estimated regional center/admin fees over the holding period.
- Estimated proceeds at exit = returned capital (based on your “return of capital %”) + after-tax earnings. Regional center/admin fees are already included in total cash outlay and are not deducted again here.
- Simple ROI = (estimated proceeds at exit − total cash outlay) ÷ total cash outlay.
- Opportunity cost is shown separately as an illustrative estimate of what the investment principal might have earned elsewhere; it is not subtracted from ROI unless you make that comparison yourself.
EB-5 cash-flow formulas in plain language
The EB-5 scenario calculation uses straightforward arithmetic so you can audit how each project assumption affects the result:
- Annual regional center/admin fees = Investment Amount × (Regional Center Fees % ÷ 100)
- Total regional center/admin fees = Annual Fees × Estimated Processing Time (years)
- Estimated earnings before tax = Investment Amount × (Expected Annual Return % ÷ 100) × Years
- After-tax earnings = Earnings Before Tax × (1 − Capital Gains Tax Rate % ÷ 100)
- Returned capital = Investment Amount × (Return of Capital % ÷ 100)
- Estimated proceeds at exit = Returned Capital + After-tax Earnings
EB-5 holding-period assumptions and interpretation notes
These assumptions frame a financial scenario for an EB-5 project; they are not a forecast of an immigration or investment outcome.
- Timeline input is used as the holding period for fee and return calculations. If your project’s capital is locked longer than immigration processing, use the longer period.
- Expected annual return is a simplified annual rate applied to the principal (not a detailed waterfall). Use the PPM or term sheet for inputs that reflect the particular offering.
- Capital gains tax rate is applied only to the modeled earnings, not to returned principal. This is a simplification and may not match your tax situation.
- Return of capital % is a key risk lever. A value below 100% implies principal loss; above 100% implies principal plus a premium.
- Jobs created and reliability score are displayed as context indicators; they do not change the math in this version.
Worked example: EB-5 Rural/TEA project cash flow
Suppose you choose a Rural/TEA investment of $900,000, with 1.5% annual regional center/admin fees, a 7-year holding period,
$25,000 attorney fees, $6,000 government/processing fees, and $3,000 medical/background costs.
Assume 5% annual return, 15% tax on earnings, and 100% return of capital.
- Annual admin fees: 900,000 × 1.5% = $13,500
- Total admin fees over 7 years: 13,500 × 7 = $94,500
- Total direct costs: 25,000 + 6,000 + 3,000 + 94,500 = $128,500
- Total cash outlay: 900,000 + 128,500 = $1,028,500
- Earnings before tax: 900,000 × 5% × 7 = $315,000
- After-tax earnings: 315,000 × (1 − 15%) = $267,750
- Estimated proceeds at exit: 900,000 + 267,750 = $1,167,750
In this example, simple ROI is about 13.6% over the holding period: the administrative fees are counted in cash outlay once, while exit proceeds consist of modeled returned capital and after-tax earnings. Reducing “Return of capital %” to 80% would substantially reduce the result.
EB-5 planning limitations
This EB-5 tool is for educational planning and scenario comparison. It does not predict USCIS outcomes, visa bulletin movement, project performance, or legal eligibility.
Always review offering documents and consult qualified immigration and financial professionals.
EB-5 background: project costs, timing, and job creation
The EB-5 Immigrant Investor Program offers a pathway to U.S. permanent residency for investors who place capital at risk in a qualifying U.S. enterprise and support job creation.
In practice, investors evaluate EB-5 using two lenses: (1) immigration strategy and timing, and (2) financial risk and return.
This calculator focuses on the second lens while recognizing that immigration timing can materially affect the holding period.
EB-5 investment categories shown by this calculator
The selectable project categories below set the calculator’s starting investment amount, which you may edit to reflect the offering you are reviewing.
- Rural/TEA: the calculator starts with a $900,000 investment amount.
- Standard area: the calculator starts with a $1,050,000 investment amount.
Common EB-5 project cost categories to plan for
An EB-5 cash commitment can include more than the capital subscription, so the calculator keeps the following categories separate.
- Investment principal: the subscribed amount placed at risk.
- Professional fees: immigration attorney fees and, in some cases, securities counsel review.
- Government and processing fees: filing and processing costs that vary by pathway and family composition.
- Medical and background checks: typically required for applicants and derivatives.
- Ongoing admin/management fees: often charged annually by regional centers or project administrators.
EB-5 job creation requirement at a high level
EB-5 eligibility generally requires evidence that the investment creates (or preserves, where applicable) at least 10 full-time jobs for qualifying U.S. workers.
Documentation and timing can vary by project structure. Because job creation is a compliance requirement, investors often treat it as a key diligence item alongside capital repayment.
Introduction: EB-5 scenario planning tip
For an EB-5 project decision, a single “best guess” can be misleading. Consider running:
(1) a conservative scenario with lower return and lower capital repayment,
(2) a baseline scenario using your best estimate, and
(3) an optimistic scenario with higher return and full capital repayment.
The spread between those EB-5 scenarios is often more informative than the baseline alone.
