Real Estate ROI Calculator

Calculate your return on investment for any real estate transaction - flips, rentals, or buy-and-hold strategies.

Purchase & Costs

$
$
$
$

Mortgage, taxes, insurance, utilities while holding

Sale Details

$
$

Agent commission (6%) + title/escrow fees

Financing

$
Return on Investment (ROI)
39.5%
On this flip
Total Profit
$19,100
Cash-on-Cash Return
19.1%

Investment Summary

Purchase Price $250,000
+ Closing Costs (Buy) $7,500
+ Renovation Costs $35,000
+ Holding Costs $8,000
Total Investment $300,500

Returns

Sale Price $340,000
- Closing Costs (Sell) $20,400
Net Proceeds $319,600

Key Metrics

Cash Invested $100,500
Annualized ROI N/A
Profit Margin 5.6%

ROI Benchmarks

  • Fix & Flip: Target 15-25% ROI per project
  • Rental: Target 8-12% cash-on-cash annually
  • Buy & Hold: 7-10% total annual return (appreciation + equity)

Understanding Real Estate ROI

Return on Investment (ROI) measures the profitability of your real estate investment relative to the capital you've put in. It's essential for comparing different investment opportunities and strategies.

Basic ROI Formula

ROI = (Profit / Total Investment) x 100

For a flip: Profit = Sale Price - Purchase Price - All Costs
For rentals: Include cash flow + appreciation + equity paydown

Cash-on-Cash Return

CoC = (Annual Cash Flow / Cash Invested) x 100

Measures return based only on the cash you actually invested, not the total property value. Critical for leveraged investments.

ROI by Investment Strategy

Fix & Flip

Higher potential returns (15-30%) but also higher risk. Success depends on accurate ARV estimates, controlled renovation costs, and quick sales.

Rental Properties

Combines cash flow, appreciation, and equity buildup. Total ROI includes all three components over time. Lower annual returns but steadier income.

Buy & Hold

Relies primarily on appreciation over time. Best in high-growth markets. Consider opportunity cost of capital tied up in the property.