How this EB-5 calculator works
EB-5 planning is not only about the statutory minimum investment. 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 cash-flow view so you can compare scenarios consistently.
What the results represent
- Total cash outlay = investment principal + direct costs (attorney, government/processing, medical/background) + estimated regional center/admin fees over the holding period.
- Net proceeds at exit = returned capital (based on your “return of capital %”) + after-tax earnings − regional center/admin fees (fees are treated as costs).
- Simple ROI = (net proceeds at exit − total cash outlay) ÷ total cash outlay.
- Opportunity cost is shown separately as an illustrative “what you might have earned elsewhere” estimate; it is not subtracted from ROI unless you do that comparison yourself.
Formulas (plain language)
The calculator uses straightforward arithmetic so you can audit the logic:
- 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)
- Net proceeds at exit = Returned Capital + After-tax Earnings − Total Regional Center/Admin Fees
Assumptions and interpretation notes
- 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). Many EB-5 offerings target low returns; use the PPM/term sheet for realistic inputs.
- 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 the most important 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 (realistic numbers)
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
- Net proceeds at exit: 900,000 + 267,750 − 94,500 = $1,073,250
In this example, the simple ROI is modest because fees are meaningful and returns are often low. If you reduce “Return of capital %” to 80%, the outcome changes dramatically.
Limitations (important)
This 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: costs, timeline, and job creation (quick reference)
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/return.
This page focuses on the second lens while acknowledging that immigration timelines can materially affect the holding period.
Investment tiers (typical statutory minimums)
- Targeted Employment Area (TEA) / Rural: often lower minimum investment (commonly referenced as $900,000).
- Standard area: higher minimum investment (commonly referenced as $1,050,000).
Common cost categories to plan for
- 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.
Job creation requirement (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.
Planning tip: run three scenarios
For decision-making, a single “best guess” can be misleading. Consider running:
(1) a conservative scenario (lower return, lower capital repayment),
(2) a baseline scenario (your best estimate), and
(3) an optimistic scenario (higher return, full capital repayment).
The spread between scenarios is often more informative than the baseline alone.
