How the ROI Calculator works

Measure total ROI for a real estate investment with costs.

Show the math

Formula

ROI = (net gain over hold period) ÷ (total cash invested). Net gain includes appreciation, equity paydown, and cumulative cash flow, minus selling costs.

Inputs

Purchase price
Cash invested
Annual cash flow
Expected appreciation
Hold years
Selling costs

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

For AI agents: Markdown version of this calculator.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

Cap rate (Capitalization rate): Net operating income divided by property value, the unlevered yield used to compare properties.
Cash-on-cash return: Annual pre-tax cash flow divided by the cash you actually invested, measuring return on money out of pocket.
Cash flow: What remains each month after rent has covered operating expenses and debt service.
ROI (Return on Investment): Total return relative to what was invested, usually including cash flow, principal paydown, and appreciation.

Browse the full real estate glossary

Property Information

Purchase Price

Down Payment

Interest Rate

Loan Term (years)

Monthly Rent

Annual Property Tax

Annual Insurance

Annual Maintenance

Vacancy Rate

Closing Costs

Initial Repairs/Rehab

Holding Period

Annual Appreciation Rate

Sale Price (optional, leave 0 to use appreciation)

About ROI

What It Measures:

Total return including cash flow and appreciation
Return on your total cash investment
Accounts for equity build-up through loan paydown
Considers property value appreciation
Comprehensive investment performance metric

Key Factors:

Holding period significantly impacts ROI
Appreciation rate affects long-term returns
Cash flow provides ongoing returns
Leverage amplifies returns (and risks)
Compare to stock market and other investments

How the ROI Calculator works

Measure total ROI for a real estate investment with costs.

Show the math

Formula

ROI = (net gain over hold period) ÷ (total cash invested). Net gain includes appreciation, equity paydown, and cumulative cash flow, minus selling costs.

Inputs

Purchase price
Cash invested
Annual cash flow
Expected appreciation
Hold years
Selling costs

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

Cap rate (Capitalization rate)

Net operating income divided by property value, the unlevered yield used to compare properties.

Cash-on-cash return

Annual pre-tax cash flow divided by the cash you actually invested, measuring return on money out of pocket.

Cash flow

What remains each month after rent has covered operating expenses and debt service.

ROI (Return on Investment)

Total return relative to what was invested, usually including cash flow, principal paydown, and appreciation.