Real Estate ROI Calculator — Measure Your Property Investment
Calculate true ROI on real estate investments including rental income appreciation tax benefits and all costs. Compare property returns with other investments.
Real estate returns come from four sources: rental income property appreciation tax deductions and mortgage paydown by tenants. Many investors only consider appreciation but rental yield and tax benefits can add 5-8% additional annual returns. Our calculator factors in all income streams and costs including mortgage payments property tax insurance maintenance vacancy and property management to give you the true ROI.
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Key Information
| Parameter | Details |
|---|---|
| India Rental Yield | 2% - 4% annually |
| US Rental Yield | 4% - 8% annually |
| India Appreciation | 5% - 8% annually (metros) |
| US Appreciation | 3% - 5% annually (national) |
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Use Calculator NowFrequently Asked Questions
What is a good ROI on rental property?
In the US a good rental property ROI (cash-on-cash return) is 8-12% annually. This means if you invested $50000 (down payment + closing costs) you should earn $4000-$6000 per year in net rental income. In India rental yields are lower at 2-4% but appreciation of 5-8% in good locations makes the total return competitive at 7-12%.
How to calculate rental property cash flow?
Monthly cash flow = Rent collected minus (mortgage payment + property tax + insurance + maintenance + vacancy allowance + property management fees). A positive cash flow property generates income from day one. For example: $1800 rent - $1200 mortgage - $200 taxes - $100 insurance - $150 maintenance - $90 vacancy = $60/month positive cash flow.
Is real estate better than stocks for investment?
Both have averaged 8-12% total returns historically but with different characteristics. Stocks offer liquidity diversification and passive management. Real estate offers leverage (you control $500K asset with $100K down) tax advantages and rental income. The ideal portfolio includes both. Real estate returns are enhanced by leverage while stock returns are enhanced by compounding and dividend reinvestment.
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Last updated: 24 March 2026