Real Estate ROI
Calculate annual return on investment for a rental property after expenses.
What is ROI in Real Estate
ROI (Return on Investment) in real estate measures how much profit you earn from a property relative to its cost.
ROI Formula
ROI (%) = (Annual Profit ÷ Total Investment) × 100
Example
Property Price = ₹50,00,000
Annual Rent = ₹3,00,000
Expenses = ₹50,000
Annual Profit = ₹2,50,000
ROI = (2,50,000 ÷ 50,00,000) × 100 = 5%
What to Include in Investment
• Property purchase price
• Registration & stamp duty
• Maintenance cost
• Loan interest (if applicable)
Why ROI Calculator is Useful
Tips to Improve ROI
• Choose high rental demand locations
• Reduce unnecessary expenses
• Increase rental income over time
• Consider long-term appreciation
Limitations
ROI does not always include property appreciation or market fluctuations. Actual returns may vary.
Frequently Asked Questions
Typically 6–10% is considered good, depending on location.
Basic ROI may not include appreciation unless added separately.
By increasing rent or reducing costs.
Yes, rental income is subject to tax as per applicable laws.