ROI Calculator
Estimate the total return on a property investment by combining cash flow, appreciation, and holding period, so you can evaluate whether a deal meets your return expectations.
Best suited for: Residential investors • Landlords • Small commercial investors
Investment Details
Annual Performance
Exit Assumptions
Total Profit: $
Total ROI: %
Average Annual Return: %
Cash Flow Contribution: $
Appreciation Contribution: $
For time-weighted performance analysis, continue to the IRR Calculator (BPM Pro).
Understanding Your Results
Your Return on Investment (ROI) shows how much profit you earn relative to the cash you invested.
- Total ROI: Overall return across the entire holding period.
- Average Annual Return: A simplified yearly performance metric.
- Cash Flow Contribution: Portion of returns generated from rental income.
- Appreciation Contribution: Portion of returns generated from property value growth.
ROI provides a high-level performance snapshot, but it does not account for the timing of cash flows.
Next step (optional):
For time-weighted performance analysis, continue to the IRR Calculator (BPM Pro).
How This Calculator Works
This calculator divides total profit (cash flow plus appreciation minus selling costs) by total cash invested to determine ROI.
Key assumptions:
- Cash flows are averaged annually
- Appreciation compounds annually
- Financing structure is not explicitly modeled
This tool is best used for early-stage deal evaluation and comparison.
When to Use This Calculator
Use the ROI Calculator when:
- Comparing multiple investment opportunities
- Evaluating expected performance over a holding period
- Balancing income-focused vs. appreciation-focused deals
- Screening deals before deeper analysis
Common Mistakes This Tool Helps Avoid
- Focusing only on appreciation or only on cash flow
- Ignoring selling costs at exit
- Comparing deals using inconsistent assumptions
- Overestimating returns without stress-testing inputs
Related Tools
To deepen your analysis, explore:
- Cash Flow Calculator – Understand ongoing income performance
- Cap Rate Analyzer – Compare properties independent of financing
- IRR Calculator – Analyze time-weighted returns (BPM Pro)
Important Note
The tools and calculators provided on this website are for informational and educational purposes only. The calculations and results are based on the information you provide and certain assumptions, and are not guaranteed to be accurate or complete. These tools are not intended to provide legal, financial, tax, or investment advice, and you should not rely on them as such.
The results generated by these tools do not constitute a guarantee of future performance, returns, or outcomes. Your actual results may differ significantly based on your specific circumstances, market conditions, and other factors not accounted for in these calculations.
We strongly recommend that you consult with qualified professionals—such as a financial advisor, real estate agent, accountant, or attorney—before making any financial, investment, or business decisions based on the results of these tools. Your use of these tools is entirely at your own discretion, and we are not liable for any damages, losses, or adverse consequences arising from your use of or reliance on these tools.