Rental Property ROI Calculator
Total return = (cash flow + appreciation + principal pay-down + tax benefit) / cash invested. The full picture.
Result
Total ROI
23.00%
Total annual return: $18,400.
- Cash flow$6,000
- Appreciation$8,000
- Principal pay-down$2,400
- Tax benefit$2,000
- Total$18,400
- CoC component7.50%
- Appreciation component10.00%
- Pay-down component3.00%
Step-by-step
- Total return = 6,000 + 8,000 + 2,400 + 2,000 = 18,400.
- ROI = 18,400 / 80,000 × 100 = 23.00%.
How to use this calculator
- Estimate each return component.
- Enter cash invested.
- Read total ROI.
About this calculator
Real-estate returns have four components: cash flow (rent − expenses − mortgage), appreciation (property value going up), principal pay-down (each mortgage payment grows equity), and tax benefit (depreciation reduces taxable income). Add all four and divide by cash invested. Most leveraged rentals show 15-25% total ROI even when cash-on-cash is only 6-8%.
Frequently asked
US average is ~3-5% per year long-term. Hot markets exceed; flat markets lag. Conservative pro-forma: 2-3%. Be realistic.
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