Rental Property ROI Calculator
Calculate rental property roi from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate rental property roi from your own entered figures. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Appreciation is hypothetical, not guaranteed; ensure principal paydown is not double-counted.
How to use the Rental Property ROI Calculator
- Enter or select annual rent collected.
- Enter or select annual operating expenses.
- Enter or select annual debt service.
- Enter or select annual estimated appreciation.
- Enter or select annual loan principal reduction.
- Enter or select cash invested.
- Read the calculated result; change any measurement to compare alternatives.
Formula
ROI=(rent−operating expenses−debt service+appreciation+principal paydown)/cash invested×100
- income
- Annual rent collected
- expense
- Annual operating expenses
- debt
- Annual debt service
- appreciation
- Annual estimated appreciation
- principal
- Annual loan principal reduction
- cash
- Cash invested
User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Appreciation is hypothetical, not guaranteed; ensure principal paydown is not double-counted.
Worked example
For rental property roi calculator, the following measurements illustrate the exact method: Annual rent collected: 30000; Annual operating expenses: 10000; Annual debt service: 12000; Annual estimated appreciation: 8000; Annual loan principal reduction: 3000; Cash invested: 100000.
Inputs
- Annual rent collected30000
- Annual operating expenses10000
- Annual debt service12000
- Annual estimated appreciation8000
- Annual loan principal reduction3000
- Cash invested100000
Result
- Estimated annual total ROI (%)19
- Annual cash flow$8,000.00
Results explained
- Estimated annual total ROI (%)
- Estimated annual total ROI (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Appreciation is hypothetical, not guaranteed; ensure principal paydown is not double-counted.
- Annual cash flow
- Annual cash flow from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Appreciation is hypothetical, not guaranteed; ensure principal paydown is not double-counted.
Frequently asked questions
ROI=(rent−operating expenses−debt service+appreciation+principal paydown)/cash invested×100
User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Appreciation is hypothetical, not guaranteed; ensure principal paydown is not double-counted.
No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.
This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.
Check period consistency, currency, percentage inputs and the assumptions: User-entered property figures only. Estimates exclude costs not entered and are not investment advice. Appreciation is hypothetical, not guaranteed; ensure principal paydown is not double-counted.