Calculate comprehensive return on investment for any real estate deal. Get cash-on-cash return, total ROI, and sensitivity analysis in seconds.
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Launch ROI CalculatorMaster the fundamentals of real estate return on investment
Return on Investment (ROI) measures the profitability of your real estate investment relative to the money you've invested. It's the most important metric for comparing different investment opportunities and assessing the performance of your portfolio.
ROI = (Total Return - Total Investment) / Total Investment × 100%
However, real estate ROI is more complex than this simple formula because it involves multiple income streams and different types of returns over time.
Measures annual cash flow relative to cash invested (down payment + closing costs + rehab).
Includes cash flow, appreciation, loan paydown, and tax benefits over the holding period.
Net operating income as a percentage of property value (ignores financing).
The discount rate that makes the net present value of all cash flows equal to zero.
Calculate all ROI types including cash-on-cash, total return, cap rate, and IRR
See how changes in key variables affect your returns with interactive charts
Include appreciation, tax benefits, closing costs, and rehab expenses
Start with purchase price, down payment amount, and closing costs. Include any rehab expenses if applicable.
Input monthly rental income, property taxes, insurance, maintenance, and other operating expenses.
Enter interest rate, loan term, expected appreciation rate, and holding period.
Review cash-on-cash return, total ROI, cap rate, and IRR. Use sensitivity analysis to test different scenarios.
Many investors only include the down payment in their cash invested calculation, ignoring significant upfront costs.
ROI should be calculated on actual cash flow after all expenses, not gross rental income.
Always factor in realistic vacancy rates (5-8%) and ongoing maintenance expenses.
Don't rely on aggressive appreciation rates. Conservative estimates (2-4% annually) are more reliable.
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