Property Investment ROI Calculator
Separate cash return from appreciation and leverage,
and see the annualised return over your holding period.
Property Investment ROI Calculator
Cash Invested
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Net Profit (levered)
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Total ROI (levered)
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Annualised Return (IRR)
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Equity Multiple
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Avg Cash-on-Cash (per year)
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Unlevered Total ROI
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Unlevered IRR
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Where the profit comes from
Year-by-Year Projection
| Year | NOI (₹) | Debt Service (₹) | Cash Flow (₹) | Loan Balance (₹) | Property Value (₹) |
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Assumptions & method
- Cash invested = down payment + closing costs + repairs/renovation. Closing costs are a percentage of the purchase price.
- Each year: rent (grown by the rent growth rate) × (1 − vacancy) is collected rent. Maintenance and management are percentages of collected rent; property tax, insurance and other costs are annual amounts grown by the expense growth rate. NOI = collected rent − operating costs, before financing.
- Financing uses a standard fixed-rate loan with monthly payments. Debt service stops when the loan is repaid; interest is not tax-adjusted.
- Property value grows at the appreciation rate each year. At the end of the holding period the property is sold for that value less selling costs, and the remaining loan balance is repaid.
- Levered return uses your cash invested and cash flow after debt service. Unlevered return assumes no loan: purchase price + closing + repairs invested, NOI received, net sale price at the end.
- Total ROI = net profit ÷ cash invested. Equity multiple = total cash returned ÷ cash invested. Annualised return is the IRR of year-end cash flows (year 0 = purchase, one cash flow per year, sale at the final year end).
- Income tax, depreciation, inflation, capital improvements after purchase and reinvestment of cash flow are not modelled. Results are estimates, not guarantees or advice.
What is property investment ROI?
Return on a rental property comes from three places: the cash left after costs and loan payments, the growth in the property's value, and the loan balance you pay down along the way. They are easy to blur together, and borrowing changes the picture. A loan can raise the return on your own cash when the property earns more than the loan costs, but it also adds risk and can lower returns when it does not. This calculator reports the return on your cash (levered), the return on the whole property as if bought outright (unlevered), the equity multiple, and an annualised IRR, and then splits the profit into its sources so you can see how much came from cash flow versus appreciation.