Property ROI Calculator
Calculate return on investment for real estate properties
Calculator
Purchase Details
Monthly Income & Expenses
Return Components
How to Use
Calculate total return on investment for rental property
Enter purchase details
Input purchase price, down payment, and closing costs
Add rental income
Enter monthly rent and expected vacancy rate
Input expenses
Add property tax, insurance, maintenance, and management costs
Set growth rates
Enter expected appreciation and holding period
View ROI breakdown
See total ROI, cash flow, appreciation, and equity components
Property ROI Formula
Total ROI = (Cash Flow + Appreciation + Equity Buildup) / Total Investment x 100
Combines all return components divided by your cash invested for the true return percentage.
Frequently Asked Questions
A good ROI for rental property typically ranges from 8-12% annually. This includes cash flow, appreciation, equity paydown, and tax benefits. Cash-on-cash returns of 8-12% are considered excellent, while 5-8% is good. ROI varies significantly by market, property type, and leverage used.
Total ROI = (Annual Cash Flow + Appreciation + Equity Buildup) / Total Cash Invested. Include rental income minus all expenses (mortgage, taxes, insurance, maintenance, vacancy), property value appreciation, and principal paid down on your mortgage divided by your initial investment.
Include: mortgage payment, property taxes, insurance, property management (8-10%), maintenance/repairs (1-2% of property value), vacancy allowance (5-10%), utilities (if you pay), HOA fees, and capital expenditure reserves. Don't forget closing costs and renovation costs in your initial investment.
Yes, appreciation is a significant component of total ROI. Historical U.S. appreciation averages 3-4% annually, though it varies by market. Conservative investors might use 2-3%, while growth markets may see 5-8%. Remember appreciation is unrealized until you sell.