🎯 Portfolio
Property ROI
Calculator
Calculate your total return on a real estate investment — cash flow + appreciation + equity paydown — over your planned hold period.
📅 Cash Flow & Growth Assumptions
Total ROI over Hold Period
0%
Annualized: 0% · Total profit: $0
Total Cash Invested
$0
Down + closing + repairs
Cumulative Cash Flow
$0
Over hold period
Appreciation Gain
$0
Property value increase
Equity Paydown
$0
Mortgage principal paid
Return Breakdown at Sale
Purchase Price—
Sale Price (after appreciation)—
Selling Costs—
Loan Balance at Sale—
Net Sale Proceeds—
+ Cumulative Cash Flow—
— Total Cash Invested—
Total Profit—
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Frequently Asked Questions
What components make up total real estate ROI? ▾
Total ROI in real estate comes from four sources: (1) Cash flow — monthly rent minus all expenses including mortgage; (2) Appreciation — property value increase over time; (3) Equity paydown — your tenant pays down your mortgage principal; (4) Tax benefits — depreciation deductions reduce taxable income. This calculator models the first three. The combination of these four creates the 'wealth quadrant' that makes real estate a powerful wealth-building vehicle.
What is a good ROI on a rental property? ▾
Most investors target 8-12% annualized total ROI on investment real estate. Cash-flow-heavy strategies (Midwest, tertiary markets) may hit 10-15% total ROI mostly through cash flow. Appreciation-heavy strategies (primary markets) may achieve similar totals through price appreciation with minimal cash flow. Over a 10-year hold, a 100-150% total ROI (10-15% annualized) is a reasonable benchmark for a well-executed investment.
How does leverage affect real estate ROI? ▾
Leverage dramatically amplifies real estate returns. If you buy a $300k property with $75k down (25%) and it appreciates 3%/yr, your equity gain is $9k/yr on a $75k investment — a 12% return on equity from appreciation alone, even before cash flow. Without leverage, the same appreciation is only a 3% return. This is why real estate builds wealth so effectively — but leverage also amplifies losses if values decline.