ROI Calculator

This is an estimate. Simple ROI compares your total estimated profit — cash flow collected during ownership plus net proceeds at sale, less every dollar you put in — to your total cash invested. The annualized figure simply divides that result by the holding period, so it is a straight-line approximation rather than a compounded internal rate of return.

ROI can vary meaningfully depending on how appreciation, financing, taxes, and sale proceeds are calculated. Two analysts can look at the same property and reach different numbers because one assumes principal paydown, another includes tax benefits, and a third uses a different appreciation rate.

Appreciation shown here is informational: it illustrates what your assumed growth rate implies about future value. Actual return depends on the sale price you enter, which is the figure that drives net proceeds. Nothing here accounts for income taxes, depreciation recapture, or capital gains.

If the number looks strong, stress-test it. Lower the sale price, raise the selling costs, and reduce cash flow by a vacancy or two, then look again.