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ROI Calculator for Investment Property

Want to know if your real estate investment is truly worth it? The ROI Calculator for Investment Property helps you measure the return on investment based on income, expenses, and appreciation—so you can make smarter, profit-focused investment decisions.




ROI Calculator

Result

ROI: --%

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What is ROI Calculator for Investment Property

The ROI (Return on Investment) Calculator for Investment Property is a specialized financial tool that helps real estate investors estimate the profitability of a rental or income-generating property. It takes into account the total income earned from the property—including rental income and potential appreciation—and compares it against the costs of acquiring, financing, and maintaining the investment.

This tool is crucial for both new and experienced investors who want to evaluate the performance of their current holdings or analyze the potential of a future purchase. By breaking down the returns into percentages and dollar values, it offers a clear, easy-to-understand snapshot of how efficiently your money is working for you.




How it works

ROI Calculator for Investment Property Works

To use the calculator, you begin by entering the purchase price, down payment, loan details, closing costs, and ongoing expenses like taxes, insurance, and maintenance. You’ll also input the expected rental income and estimated appreciation rate (if applicable). The calculator then computes your net annual profit (rental income minus expenses), and compares it to your total cash investment to determine the ROI.

The final output is typically expressed as a percentage, representing how much return you’re earning on every rupee invested. For example, if you invest ₹10,00,000 in a rental property and earn ₹1,00,000 per year in net income, your ROI is 10%. The tool may also include cash-on-cash return calculations for more nuanced insights. This helps you compare multiple properties side by side and assess whether the investment meets your financial goals or needs further analysis.



Frequently Asked Questions

What is a good ROI for an investment property Toggle
It depends on the market, but most investors aim for a minimum ROI of 8–12% annually for residential rental properties.
Does ROI include property appreciation Toggle
Yes, if you choose to include appreciation. You can calculate ROI both with and without appreciation depending on your investment strategy.
What’s the difference between ROI and cash-on-cash return Toggle
ROI measures total return including appreciation and equity growth, while cash-on-cash return focuses only on annual cash flow relative to your initial cash investment.
Can I use this tool for commercial real estate Toggle
Yes. While designed for residential rentals, the same principles apply to commercial investments by inputting accurate income and expense data.
Does the ROI calculator consider loan interest and expenses Toggle
Absolutely. The tool factors in your loan interest, operating costs, taxes, and other expenses to provide an accurate profit estimate.