Property ROI Calculator
Cash-on-cash · Total return · 5-year projection
Avg US: 3–5%
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Cash-on-Cash
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Total ROI
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Monthly Cash Flow
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Total Profit
About This Calculator
The Property ROI Calculator helps real estate investors evaluate whether a rental property is worth buying. It calculates two key metrics: Cash-on-Cash Return (annual cash flow ÷ total cash invested) and Total ROI (cash flow + appreciation ÷ down payment).
Cash-on-Cash Return is the most practical metric for landlords — it tells you what percentage of your initial investment you earn back each year in cash. A rate of 8–12% is generally considered strong.
Total ROI factors in property appreciation over your holding period, giving a more complete picture of wealth creation. Most investors target a total ROI of 15–25% over 5 years.
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Frequently Asked Questions
What is a good ROI for a rental property?▼
A cash-on-cash ROI of 8–12% is generally considered good for rental properties. Total ROI including appreciation of 15–25% over 5 years is excellent. Markets vary significantly — high-cost cities often have lower cash returns but stronger appreciation.
What's the difference between ROI and cash-on-cash return?▼
Cash-on-cash return measures annual cash flow relative to your invested cash. ROI (total return) includes appreciation, equity paydown, and tax benefits. Cash-on-cash is better for comparing income-generating ability; total ROI measures overall wealth creation.
How do I increase my rental property ROI?▼
Increase ROI by raising rents to market rate, reducing vacancy through better tenant screening, refinancing to lower rates, adding value through renovations, or reducing management costs with better systems.
Should I include mortgage payments in expenses?▼
Yes — always include your full mortgage payment (principal + interest) in monthly expenses when calculating ROI. This gives you the true cash flow. Principal paydown is a form of return, but it's not liquid cash.
What expenses should I include in ROI calculations?▼
Include mortgage payment, property taxes, insurance, property management fees (typically 8–10%), maintenance reserve (1% of value annually), vacancy allowance (5–10% of rent), and any HOA fees.
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