REI Utility
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Real Estate ROI Calculator

Real estate ROI projects your total return from a rental or fix-and-hold over your planned hold period. Combines cash flow, appreciation, and equity built.

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How to use this calculator

  1. Enter the purchase price and any renovation costs.
  2. Add the monthly rent and annual operating expenses.
  3. Enter your expected sale price and hold period.
  4. Add your total cash invested for a cash-on-cash number.

What your results mean

Total ROI is total profit (appreciation + rent collected - expenses) divided by total cost. Annualized ROI averages that over your hold period. Cash-on-cash is annual cash flow divided by cash invested — the operational return.

How to improve real estate ROI

  • Buy below market — every dollar saved at purchase compounds for years.
  • Force appreciation through targeted renovations (kitchens, baths, curb appeal).
  • Refinance to pull equity out without selling (tax-free).
  • Hold for 5+ years — short holds get killed by transaction costs.
  • Use a 1031 exchange to defer capital gains when you sell.

Frequently asked questions