Real Estate ROI Calculator
Calculate your total return on investment and annualized return for a real estate property including rental income and expenses.
Real Estate ROI
Real Estate ROI accounts for both appreciation and net rental income.
Total Gain = (Current Value − Purchase Price) + (Annual Rental Income − Annual Expenses) × Years Held
Total ROI = (Total Gain / Purchase Price) × 100
Annualized Return = ((1 + Total ROI / 100)^(1 / Years) − 1) × 100
What to include in expenses:
- Mortgage interest (not principal)
- Property taxes and insurance
- Maintenance and repairs
- Property management fees
- Vacancy loss allowance (typically 5–10 %)