Real Estate ROI Calculator
Calculate return on investment for your property
Real Estate Investment Analysis
Key Investment Metrics:
Cash Flow
The amount of money generated by a property after all expenses and mortgage payments are deducted from rental income.
Cash on Cash Return
The ratio of annual pre-tax cash flow to the total cash invested, expressed as a percentage. It measures the property's performance based on your initial investment.
Cap Rate
The ratio of the property's net operating income (NOI) to its purchase price. It indicates the property's intrinsic rate of return, regardless of financing.
Total ROI
The total return on investment over the entire holding period, including cash flow, appreciation, and equity build-up.
Annualized ROI
The average annual return on investment, which takes into account the compounding effect over the holding period.
Real Estate Investment Benefits
- Cash Flow: Regular income from rent payments
- Appreciation: Increase in property value over time
- Equity Build-up: Tenants paying down your mortgage
- Tax Benefits: Deductions for expenses, interest, and depreciation
- Leverage: Using borrowed money to increase potential returns
Calculate Real Estate ROI
Property Purchase
$
%
$60,000.00
$
$
%
Rental Income
$
$
Laundry, parking, storage, etc.
%
Typical range: 3-10%
Monthly Expenses
$
Monthly amount
$
Monthly amount
$
Monthly amount
$
Repairs, lawn care, etc.
%
0% if self-managed, typically 8-12%
$
If owner-paid
$
Miscellaneous expenses
Appreciation & Investment Period
%
Historical average: 3-4%
%
Agent commissions, closing costs, etc.
Investment Analysis
Total Investment:
$0.00
Down payment + closing costs + renovation costs
Monthly Mortgage Payment:
$0.00
Monthly Cash Flow:
$0.00
Annual: $0.00
Cash on Cash Return:
0.00%
Cap Rate:
0.00%
Property Value at Sale:
$0.00
After 5 years of appreciation
Equity at Sale:
$0.00
Total ROI:
0.00%
Over 5 years
Annualized ROI:
0.00%
Total Profit:
$0.00
Cash Flow Projection
Equity Growth Projection
Real Estate Investment Tips
The 1% Rule
The 1% rule suggests that a property's monthly rent should be at least 1% of the purchase price to be considered a good investment. For example, a $200,000 property should rent for at least $2,000 per month.
Example: With your current numbers, your monthly rent is 0.01% of the purchase price, which does not meet the 1% rule.
The 50% Rule
The 50% rule estimates that a property's operating expenses (excluding mortgage payments) will be approximately 50% of the gross rental income. This is a quick way to estimate cash flow.
Example: Your current operating expenses are0.00% of your gross income, which is below the 50% rule estimation.
Market Selection
When selecting a real estate market for investment, consider these factors:
- Population growth trends
- Job market strength and diversity
- Local economy and industry stability
- Rent-to-price ratio
- Property tax rates
- Insurance costs (especially in natural disaster-prone areas)
- Landlord-friendly regulations
- Crime rates and school quality
Financing Options
| Loan Type | Down Payment | Benefits |
|---|---|---|
| Conventional | 20-25% | Better rates, no PMI with 20% down |
| FHA | 3.5-10% | Lower credit score requirements, must be owner-occupied |
| VA | 0% | For veterans, no down payment required, must be owner-occupied |
| Commercial | 25-30% | For larger properties (5+ units), based on property performance |