Real Estate ROI Calculator
Estimate real estate ROI from the cash you invested, cumulative rental cash flow, and net sale proceeds after selling costs and the remaining loan balance.
Written and checked by TheToolNet Editorial Team · Last reviewed: September 27, 2026 · Editorial method
Calculate ROI on real estate
What belongs in each input
Cash invested includes the down payment or full cash purchase plus closing and renovation costs. Annual expenses should include property tax, insurance, maintenance, management, vacancy allowance, association fees, utilities paid by the owner, and annual mortgage payments. Net sale proceeds should already subtract selling costs and any remaining loan payoff.
Total ROI formula
The annualized estimate treats all rental cash flow as if it were received at the end. That simplification is useful for a quick comparison but is not an internal rate of return. Use dated cash flows for an exact IRR.
Cash-on-cash versus total return
Cash-on-cash return normally compares one year's pre-tax cash flow with cash invested. Total ROI includes the eventual sale. Do not combine an appreciated property value with sale proceeds unless the remaining debt and selling costs are also accounted for.
Limits and scenario planning
This tool is not an appraisal or investment recommendation. Test vacancy, repairs, rent, financing, sale value, tax, and holding period as separate scenarios. The house loan EMI calculator can produce a more detailed loan-payment estimate.
Frequently asked questions
Should mortgage principal count as an expense?
The annual payment can be included for cash-flow planning, while the remaining loan is removed from sale proceeds. For accounting or tax analysis, separate principal and interest.
Are taxes included?
Only if you include them in expenses. Income and capital-gains tax treatment varies and is not calculated.