Property ROI Calculator
See the true return on your real-estate investment — total ROI %, annualised return, capital gain and rental income, all live on one screen.
Return breakdown
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Disclaimer: Indicative estimate only. ROI ignores maintenance, property tax, loan interest, indexation and capital-gains tax unless you fold them into the inputs. Consult a CA before acting.
What is property ROI?
Return on investment (ROI) tells you how much you earned relative to what you put in. For real estate, the money you put in is the purchase price plus buying costs (stamp duty, registration and brokerage), and the money you get back is the capital appreciation (sale value minus purchase price) plus all the rental income you collected while holding it. Total ROI is the whole gain as a percentage of what you invested; annualised return (a CAGR-style figure) spreads that gain across the years you held the property so you can compare it fairly against an FD, mutual fund or another flat.
A worked example
Say you buy a flat for ₹50,00,000 and pay another ₹4,00,000 in stamp duty, registration and brokerage — so your true investment is ₹54,00,000. Five years later it is worth ₹75,00,000 and you have collected ₹6,00,000 in rent along the way. Here is how the return works out:
The 57.4% total ROI looks large, but spread over five years it works out to roughly 9.5% a year — that is the number to compare against other investments. Enter your own figures above to see your result instantly.
Key terms explained
ROI vs CAGR (annualised)
Total ROI is the entire gain as a percentage — it does not care how long you held the asset. Annualised return (CAGR) converts that into a per-year compounding rate, so a 57% ROI over 5 years becomes about 9.5% a year. Always compare investments on the annualised figure.
Capital appreciation + rental
Property earns in two ways: the value going up (capital appreciation = sale value − purchase price) and the rent it generates while you hold it. A true ROI adds both. A flat that barely appreciates can still deliver a healthy return through strong rental yield, and vice versa.
Costs matter
Stamp duty, registration and brokerage can add 6–10% to the price of a property. Leaving them out flatters your ROI. Because they inflate the denominator (total invested), including them gives an honest number — this calculator adds them in by design.
What ROI leaves out
This is a gross return. Real net returns also carry maintenance, property tax, loan interest and capital-gains tax on sale. For a long-term holding, indexation can cut the taxable gain. Fold recurring costs into your inputs, or speak to a CA, for a true net picture.
How is return on a property investment calculated?
Total return combines rental income over the holding period and the capital gain on sale, measured against the money actually invested including stamp duty, registration, brokerage and improvement costs.
Why should stamp duty be included in the cost?
Because it is a real, unrecoverable cost of acquiring the asset — commonly 5% to 8% of value with registration charges. Ignoring it overstates the return significantly, particularly on a short holding period.
What is the difference between ROI and annualised return?
ROI is the total percentage gain over the whole period. Annualised return, or CAGR, converts it to a yearly rate, which is the only fair way to compare a property held for eight years with a fund held for three.
Should the home loan be considered?
If the purchase is leveraged, the money you actually put in is the down payment plus costs, and the interest paid is an expense. Leverage magnifies both gains and losses, so compute the return on your own equity, not on the property value.
What costs are usually forgotten?
Society maintenance, property tax, repairs between tenants, vacancy periods, brokerage on each new tenant, and the capital gains tax and brokerage on exit. Together these can take a meaningful bite out of the headline return.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.