Real Estate ROI Calculator

Calculate the return on investment for your real estate property.

Purchase information

Current status

Income & expenses (total)

Total ROI

138.1%

Annualized: 33.5%

Total return

$116,000

Total investment

$84,000

Cash-on-cash return

42.9%

Cap rate

9.5%

Appreciation

26.7%

Return breakdown

Initial investment(42.0%)
Appreciation gain(40.0%)
Net rental income(18.0%)
Initial investment
$84,000
Appreciation gain
$80,000
Net operating income
$36,000
Total profit $116,000

Property value change

Purchase price

$300,000

Current value

$380,000

+26.7% change

Understanding real estate ROI

ROI measures the total return on your investment including appreciation and rental income, minus all costs. It helps compare different investment opportunities.

Key metrics explained

Cash-on-cash return measures annual cash flow vs. cash invested. Cap rate measures NOI vs. property value. Both help evaluate property performance.

Improving ROI

Increase rents to market rates, reduce vacancy, decrease operating expenses, add value through renovations, and optimize financing to improve returns.