REIT Return Calculator: Total and Annualized Return
See how a real estate investment trust performed by setting what you paid against its value plus the dividends it paid out.
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 |
|---|---|---|---|
| $12k · $21k · 7yr | 75.00% | 8.32% | $9,000.00 |
| $5k · $7k · 5yr | 40.00% | 6.96% | $2,000.00 |
| $30k · $58k · 12yr | 93.33% | 5.65% | $28,000.00 |
| $20k · $18k · 3yr | -10.00% | -3.45% | -$2,000.00 |
How This Calculator Works
Enter the amount invested in the REIT and the total returned — its current or sale value plus every dividend received. Add the years held. The calculator reports the profit, the total return, and the annualized return.
The Formula
Return on Investment
V_start = amount invested, V_end = amount returned; annualized ROI = (V_end / V_start)^(1/n) − 1
Worked Example
A $12,000 REIT investment that returns $21,000 over 7 years — dividends included — is a $9,000 profit, a 75% total return, or about 8.3% a year annualized. That rate is what compares against other income investments.
Key Insight
A REIT's return is heavily weighted toward dividends — REITs must distribute most of their taxable income. Leaving out the dividends understates the return badly, which is why they belong in the total returned.
Frequently Asked Questions
What is a REIT?
A real estate investment trust owns or finances income-producing property and trades like a stock. It lets investors hold real estate without buying property directly.
Why must I include dividends?
REITs are required to distribute most of their income, so dividends are the bulk of the return. A figure that omits them badly understates how the REIT performed.
What if I still hold the REIT?
Enter the current market value plus dividends received as the total returned. The result is then an unrealized return that moves with the share price.
Are REIT dividends taxed differently?
Often yes. A large share of REIT dividends is taxed as ordinary income rather than at qualified-dividend rates. For an after-tax return, enter after-tax figures.
How do REITs compare with owning property?
REITs are liquid, diversified, and need no management, but you give up control and leverage. Convert both to annualized returns to compare them fairly.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources.
Methodology & Review
Return is measured from the amount invested in the REIT and the total returned — current or sale value plus dividends received. Annualized return is the constant yearly rate over the holding period.
Written by Ugo Candido · Last updated May 17, 2026.