Real Estate ROI Calculator: Return on a Property Investment
Measure how a property investment performed by setting the full cost of getting in against everything it returned.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year value projection
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Total ROI | Annualized ROI | Net profit |
|---|---|---|---|
| $250k · $410k · 10yr | 64.00% | 5.07% | $160,000.00 |
| $180k · $240k · 7yr | 33.33% | 4.20% | $60,000.00 |
| $320k · $300k · 5yr | -6.25% | -1.28% | -$20,000.00 |
| $140k · $290k · 15yr | 107.14% | 4.97% | $150,000.00 |
How This Calculator Works
Enter your total cost of acquiring the property — purchase price plus closing costs and any renovation — and the total proceeds, meaning the sale price after selling costs plus any net rental income collected. Add the years you owned it. The calculator reports net profit, total ROI, and the annualized return on the capital tied up.
The Formula
Return on Investment
V_start = amount invested, V_end = amount returned; annualized ROI = (V_end / V_start)^(1/n) − 1
Worked Example
You put $250,000 into a property including closing costs and improvements, and ten years later it returns $410,000 after a sale and net rent. That is $160,000 of profit, a 64% total ROI, and an annualized return near 5.1% on the money committed.
Key Insight
Property returns look large in total but modest once annualized, because holding periods are long. The figure this calculator cannot see is leverage — a mortgage means your own cash invested is far smaller, which can lift the return on equity well above the headline ROI.
Frequently Asked Questions
What should I include in the total cost?
Use your all-in cost: purchase price, closing costs, and any renovation or improvement spending. For a leveraged deal, some investors instead enter only the cash down payment to measure return on equity.
What should the total proceeds include?
Include the sale price after agent and closing costs, plus the net rental income collected over the years — rent received minus operating expenses, maintenance, and property taxes.
Does this calculator handle a mortgage?
Not directly. It measures return on the cash figures you enter. To gauge leveraged returns, enter your down payment and out-of-pocket costs as the total cost rather than the full price.
How does real estate ROI compare to other investments?
Convert it to an annualized rate and compare against a market index or a mortgage rate. Property also offers income and diversification that a single percentage cannot fully capture.
Should I adjust for inflation?
The result is nominal. Over a long hold inflation matters, so compare the annualized return against the cited inflation benchmark to see the real gain in purchasing power.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources.
Methodology & Review
Return is measured from the all-in cost of acquiring the property and the total proceeds, meaning sale value after costs plus net rental income. Annualized ROI is the constant yearly rate over the holding period; mortgage leverage is reflected only if cash figures are entered.
Written by Ugo Candido · Last updated May 17, 2026.