Property ROI Calculator
A property earns money in two ways: rent while you own it and a gain when you sell. This calculator adds both, subtracts all the costs and gives your return.
Results
Total ROI
69%
- Total profit
- ₹36,90,000
- Annualised return
- 6.78%
- Total invested
- ₹53,50,000
- Sale proceeds after costs
- ₹78,40,000
- Net rent received
- ₹12,00,000
Investing ₹53,50,000 and receiving ₹78,40,000 on sale plus ₹12,00,000 of rent over 8 years is a profit of ₹36,90,000, an ROI of 69% or 6.78% a year.
Show the calculation steps
- Money invested = price + buying costs = ₹50,00,000 + ₹3,50,000 = ₹53,50,000.
- Sale proceeds after selling costs = ₹80,00,000 − 2% = ₹78,40,000; net rent over 8 years = ₹12,00,000.
- Profit = ₹78,40,000 + ₹12,00,000 − ₹53,50,000 = ₹36,90,000; ROI = profit ÷ invested × 100 = 68.97%.
- Annualised return = (total return ÷ invested)^(1 ÷ years) − 1 = 6.78%.
- This ROI treats everything as paid in cash. If you used a loan, the calculator for property investment shows the return on your own money.
Include every cost
Buying costs, repairs, selling costs and taxes reduce your return, so add them in. A property that looks like a 60% gain can be much less after costs.
ROI versus yearly return
Total ROI ignores time. An annualised return converts it to a yearly rate so a property can be compared with a fixed deposit or fund.
Formula
Profit = Sale price − selling costs + net rent − (purchase price + buying costs)
ROI = Profit ÷ (purchase price + buying costs) × 100
Annualised return = (Total return ÷ Invested)^(1 ÷ years) − 1
Where:
- Total return
- = Sale proceeds plus net rent
Example calculation
₹50 lakh bought, ₹80 lakh sold after 8 years
Inputs
- Purchase Price
- ₹50,00,000
- Buying Costs
- ₹3,50,000
- Net Rent per Year
- ₹1,50,000
- Holding Period
- 8 years
- Sale Price
- ₹80,00,000
- Selling Costs
- 2 % of sale price
Result
- Total ROI
- 69%
- Total profit
- ₹36,90,000
- Annualised return
- 6.78%
- Total invested
- ₹53,50,000
- Sale proceeds after costs
- ₹78,40,000
- Net rent received
- ₹12,00,000
Step-by-step
- Money invested = price + buying costs = ₹50,00,000 + ₹3,50,000 = ₹53,50,000.
- Sale proceeds after selling costs = ₹80,00,000 − 2% = ₹78,40,000; net rent over 8 years = ₹12,00,000.
- Profit = ₹78,40,000 + ₹12,00,000 − ₹53,50,000 = ₹36,90,000; ROI = profit ÷ invested × 100 = 68.97%.
- Annualised return = (total return ÷ invested)^(1 ÷ years) − 1 = 6.78%.
Important notes
- Assumes everything is paid in cash. Capital gains tax on the sale is not included.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How do I calculate property ROI?
Add the sale proceeds and net rent, subtract everything you paid, and divide the profit by the total invested.
Does it include a home loan?
No. See the property investment calculator for the return on your own money when borrowing.
Are taxes included?
No. Capital gains tax and income tax on rent are not included.
Related calculators
- ROI CalculatorCalculate the return on investment (ROI) as a percentage, the gain or loss and the annualised return over your holding period.
- Rent vs Buy CalculatorCompare buying a home with renting and investing the difference, and see whose net worth is higher over time.
- Rental Yield CalculatorCalculate the gross and net rental yield of a property after vacancy and yearly expenses.
- Property Investment CalculatorModel a leveraged property investment with a loan, rent and sale, and see the IRR on the cash you put in.
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