Home/Real Estate Tools/Real Estate ROI Calculator
Investment Returns

Real Estate ROI Calculator

Calculate your total return on a property investment — capital gain, net rental income, ROI and CAGR — from purchase through sale.

Advertisement
Real Estate ROI Calculator
Total return on property investment including appreciation and rental income
Enter details to calculate ROI
Total Return = Capital Gain + Net Rental Income
ROI % = Total Return / Total Investment × 100

Disclaimer. This calculator provides an estimate for planning purposes and does not account for taxes, financing costs, vacancy periods or transaction fees beyond what you enter — consult a qualified financial advisor or real estate professional before making investment decisions. Read full disclaimer →

How Real Estate ROI Is Calculated

Total investment combines the purchase price, registration/stamp duty costs and any renovation spend. Over your holding period, net rental income is tracked as annual rent minus annual expenses, summed across the years. At sale, capital gain is the sale price minus total investment. Total Return = Capital Gain + Net Rental Income, and ROI % = Total Return ÷ Total Investment × 100. The tool also shows an annualized ROI (total ROI divided by holding years) and CAGR based purely on the capital appreciation leg of the investment.

CAGR (Compound Annual Growth Rate) is calculated as (Sale Price / Total Investment)^(1/years) − 1, and reflects only the price-appreciation portion of your return, excluding rental income — useful for comparing the property's capital growth against other asset classes like equities or mutual funds.

Worked Example

Buy price ₹50,00,000 + registration ₹2,50,000 + renovation ₹3,00,000 = total investment ₹55,50,000. Monthly rent ₹25,000 with ₹60,000/year expenses, held 5 years, then sold for ₹75,00,000: net rental income totals ₹12,00,000, capital gain is ₹19,50,000, giving a total return of ₹31,50,000 — a total ROI of 56.76% (about 11.35%/year) and a CAGR of 6.21% on the capital-only leg.

Frequently Asked Questions

It's the purchase price plus registration/stamp duty costs plus any renovation spend — the full upfront cash outlay to acquire and prepare the property, before any rental income or resale proceeds. This is the base against which ROI percentage is measured.
Total ROI includes both capital gain AND net rental income earned over the whole holding period, expressed as a single percentage. CAGR isolates just the price appreciation (capital gain) and expresses it as a smoothed annual growth rate, ignoring rental income — useful for comparing the property's price growth alone against stocks or mutual funds.
Annual ROI here is simply total ROI divided evenly by the number of years (a linear average), while CAGR is a compounded rate calculated only from the capital gain leg. Since rental income doesn't compound in this model and total ROI includes it, the two numbers will typically differ — CAGR is usually the more standard measure for comparing appreciation-only growth.
No — it works from the raw cash flows you enter (purchase costs, rent, expenses, sale price) and does not automatically deduct capital gains tax, income tax on rental income, or home loan interest. Factor those in separately, or use the Property Investment Calculator, which includes loan EMI modeling.
Advertisement

Related: Property Investment Calculator, Rental Income Calculator, All Real Estate Tools