Real Estate ROI Calculator – Measure Property Investment Returns
Calculate the return on investment for a property. Enter purchase price, sale price, and any costs. The tool shows ROI percentage and net gain. Use it to evaluate past investments or project potential returns.
Real Estate ROI Calculator
Calculate return on investment for a property. Enter purchase price, sale price, and any costs (repairs, fees, etc.).
Real estate ROI formula
ROI (%) = ((Sale Price − Total Cost) ÷ Total Cost) × 100
Total Cost = Purchase Price + Costs (repairs, fees, etc.)
Understanding real estate ROI
Return on investment (ROI) is a key metric for evaluating property investments. It tells you how much profit or loss you made relative to what you spent. A 20% ROI means for every 100 you invested, you gained 20 (or lost 20 if negative). The real estate ROI calculator helps you compute this quickly by entering your purchase price, sale price, and any costs.
When calculating ROI, include all relevant costs: stamp duty, legal fees, repairs, renovations, and selling costs like agent commission. Excluding costs inflates your ROI. The calculator uses the formula: (Gain ÷ Total Cost) × 100. Gain is sale price minus total cost (purchase + costs).
For rental properties, ROI can be expanded to include rental income over the holding period. This calculator focuses on capital gains. Use the rental yield calculator to assess income yield, and combine both for a fuller picture. Property investments also involve leverage (mortgage), which can amplify returns and risks—consider using the mortgage calculator to model loan impact.