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Property ROI Calculator

Calculate total net profit, overall ROI, and annualized ROI on real estate investment properties, renovations, and flips.

Calculator Inputs

Live
Currency:
₹
₹500,000₹20,000,000
₹
₹1,000₹200,000
Calculation Results
Total Real Estate ROI
47.12%
Annualized ROI: 13.73% per year
Total Net Capital Profit
₹24,50,000
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How to use the Property ROI Calculator

  1. 1Enter property purchase price.
  2. 2Enter rehab, repair, and acquisition closing costs.
  3. 3Enter final sale price (or exit valuation).
  4. 4Enter total net rental income collected during holding period.
  5. 5Enter holding duration in years.
  6. 6Review total net profit, overall ROI percentage, and annualized return.

How Property ROI is Calculated

Total invested capital is subtracted from total cash returned (sale price plus accumulated net rental cash flow).

Mathematical Formula
Total Invested = Purchase Price + Rehab Costs Total Returned = Sale Price + Net Rental Income ROI (%) = ((Total Returned - Total Invested) / Total Invested) × 100
Formula Variables & Logic

Annualized ROI applies compound growth formulas across the holding duration.

Worked Example: Fix and Flip Project
Sample Calculation
Scenario: Purchasing a distressed home for $200,000, investing $40,000 in renovations, and selling for $310,000 after 1 year.
Step-by-step breakdown
  1. 1Total Invested = $200,000 + $40,000 = $240,000
  2. 2Net Profit = $310,000 - $240,000 = $70,000
  3. 3ROI = ($70,000 / $240,000) × 100 = 29.17%
Estimated Result
Total net profit is $70,000 with an ROI of 29.17%.

What affects Property ROI results

  • Contractor renovation cost overruns.
  • Holding carrying costs (utilities, loan interest, insurance).
  • Realtor sales commissions upon exit.
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Frequently Asked Questions

What is a good ROI for a residential fix-and-flip?

Most experienced real estate investors target at least 15% to 20% net ROI on flips to provide a safety margin against unexpected repair costs.

How does leverage (mortgage debt) affect real estate ROI?

Using mortgage financing reduces upfront cash invested, which magnifies ROI when values rise, but increases risk if property values fall.

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