Real Estate ROI Calculator

Real estate ROI measures modeled property profit relative to the cash invested. This page combines acquisition cost, income, expenses, debt service, appreciation and sale assumptions.

Total acquisition cost includes purchase price, closing costs, initial renovation, furnishing or setup costs and other upfront property costs.

For financed purchases, initial cash invested includes down payment and cash-paid upfront costs. Financed loan costs increase debt instead of being counted as cash twice.

Gross potential income starts with scheduled rent and other property income before vacancy and collection loss.

Vacancy reduces scheduled rental income by the percentage entered. This is a planning assumption, not a market forecast.

Effective gross income equals scheduled rent minus vacancy loss plus other income.

Operating expenses include property tax, insurance, maintenance, management fees, utilities, HOA dues and other owner-paid expenses entered by the user.

NOI equals effective gross income minus operating expenses. It excludes debt service, income tax, depreciation, capital expenditures and sale proceeds.

Financed mode uses the same fixed-payment amortization formula family as NexaCalc mortgage and loan calculators.

Capex reserve can be entered as a fixed annual amount and as a percentage of effective gross income. It is subtracted after NOI.

Before-tax cash flow equals NOI minus debt service and capital expenditure reserve. Negative cash flow is shown without hiding it.

Cash-on-cash return divides first-year cash flow by initial cash invested, making it sensitive to leverage and upfront cash assumptions.

Cap rate looks at NOI relative to purchase price. ROI includes broader cash investment, financing, cash flow and sale assumptions.

Gross rental yield compares scheduled rent with purchase price before expenses. It is simpler than ROI and does not show operating performance.

Principal paid through amortization reduces loan balance and can increase owner equity, but it is not the same as spendable cash flow.

Appreciation is modeled from the entered annual rate unless a direct sale price override is entered.

Selling costs are modeled as a percentage of sale value plus fixed selling costs before loan payoff.

Total ROI divides total profit by initial cash invested. Total profit includes cumulative cash flow and net sale proceeds.

Equity multiple is total cash returned divided by initial cash invested. It is shown alongside ROI and IRR for context.

Property IRR solves the annual cash-flow series with the initial investment as period zero. It is useful, but multiple IRRs can occur in unusual cash-flow patterns.

Compare mode shows leverage effects on cash invested, cash flow, total ROI and IRR without declaring one structure universally better.

Negative cash flow can reduce total returns and may require additional cash contributions. The calculator surfaces those years in the schedule.

The calculator excludes tax law, depreciation, recapture, rent-control rules, lender approval, tenant risk, repairs not entered and guaranteed valuation.

A 300,000 property with 60,000 down payment, 6.5% 30-year financing, 2,400 monthly rent, 5% vacancy and entered expenses shows how financing, NOI, cash flow and sale proceeds interact. The same assumptions in all-cash mode usually produce different cash flow and lower leverage.

• Brueggeman and Fisher, Real Estate Finance and Investments, recognized real-estate finance textbook family. Source.
• Geltner, Miller, Clayton and Eichholtz, Commercial Real Estate Analysis and Investments, recognized real-estate investment-analysis textbook family. Source.
• CFPB, amortization consumer education. Source.
• Fannie Mae HomeView homebuyer education source family. Source.
• SEC Investor.gov, Internal Rate of Return glossary. Source.

References reviewed on June 28, 2026. Formulas are implemented as transparent investment math, not forecasts.