Property Investment ROI Calculator
Property Purchase Price: 5000000
Purchase Costs: 200000
Renovation Costs: 300000
Annual Rental Income: 600000
Annual Expenses: 100000
Expected calculation: ((600000 - 100000) / (5000000 + 200000 + 300000)) * 100 Expected result: 9.09%
Use the Prozameen Property Investment ROI Calculator to estimate the annual return generated by a rental property compared with the total amount invested.
Rental Property Investment Guide for Beginners
What is Property Investment ROI?
ROI, or Return on Investment, measures the estimated return generated by an investment as a percentage of the total amount invested.
How to Use the Calculator
Enter:
- Property Purchase Price
- Purchase Costs
- Renovation Costs
- Annual Rental Income
- Annual Expenses
The calculator will estimate the property's annual ROI.
ROI Formula
ROI = (Annual Rental Income - Annual Expenses) ÷ Total Investment Cost × 100
Total Investment Cost includes:
- Property Purchase Price
- Purchase Costs
- Renovation Costs
Example
- Property Price: 5,000,000
- Purchase Costs: 200,000
- Renovation Costs: 300,000
- Annual Rental Income: 600,000
- Annual Expenses: 100,000
Total Investment:
5,500,000
Net Annual Income:
500,000
Estimated ROI:
9.09%
Important Information
ROI should be considered alongside other measures. Use the Rental Yield Calculator for rental-income analysis and the Cash-on-Cash Return Calculator when financing and actual invested cash are important.
This calculator estimates annual rental return only. It does not include financing costs, future property appreciation, selling costs, taxes or capital gains.
If you also want to explore how the property's value could change over time, use the Property Appreciation Calculator. It can help you test different long-term growth assumptions using the current property value, an assumed annual appreciation rate and a selected holding period.
The appreciation result should be treated as a planning scenario rather than a prediction of future property prices. Actual values may rise, remain stable or decline depending on market conditions.
Results are estimates for informational and educational purposes only and do not constitute financial, investment, legal or tax advice.
