Real Estate ROI Calculator

Real estate ROI calculation considers both capital appreciation and rental income to provide a comprehensive view of property investment performance. Our calculator helps you analyze total returns over your holding period.

The calculator factors in property value growth, rental income growth, and expenses to give you accurate annualized returns for comparison with other investment options.

ROI Components:

• Capital Appreciation: Increase in property value over time
• Rental Income: Annual rental income received
• Total Returns: Capital appreciation + Net rental income
• Annualized ROI: Compound annual growth rate

Real Estate ROI Benchmarks:

• Excellent: > 15% annualized ROI
• Good: 12-15% annualized ROI
• Average: 8-12% annualized ROI
• Below Average: < 8% annualized ROI

Factors Affecting ROI:

• Location: Prime locations offer better appreciation
• Property Type: Residential vs commercial properties
• Market Timing: Entry and exit timing affects returns
• Leverage: Using loans can amplify returns
• Management: Active vs passive property management

Investment Strategies:

• Buy and Hold: Long-term appreciation and rental income
• Fix and Flip: Short-term capital gains through renovation
• REIT Investment: Diversified real estate exposure
• Commercial Real Estate: Higher yields but more complex

Tax Considerations:

• Rental Income: Taxable under "Income from House Property"
• Capital Gains: LTCG 20% with indexation after 3 years
• Depreciation: Can claim depreciation on property
• Expenses: Maintenance, interest deductible from rental income

Features:

• Comprehensive ROI calculation with dual income sources
• Capital appreciation and rental income tracking
• Annualized return calculation
• Year-by-year performance breakdown
• Visual investment performance analysis