Real Estate ROI Calculator

Calculate the return on investment for your property

Purchase Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (years)

Monthly Rent ($)

Base Monthly Expenses ($)

Annual Property Tax ($)

Annual Insurance ($)

Annual Maintenance ($)

Vacancy Rate (%)

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Real Estate Return on Investment Calculator: Key Metrics & Formulas

Loan Amount

$\text{Loan Amount} = \text{Purchase Price} – \text{Down Payment}$ $Loan Amount = Purchase Price - Down Payment$
Monthly Mortgage Payment (if you have a loan)

$\text{Monthly Payment} = \text{Loan Amount} \times \frac{r(1+r)^n}{(1+r)^n – 1}$ $Monthly Payment = Loan Amount \times ( 1 + r ) ^{n} - 1 r ( 1 + r ) ^{n}$

where:
- $r = \frac{\text{Annual Interest Rate}}{100 \times 12}$
  
  $r = 100 \times 12 Annual Interest Rate$
- $n = \text{Loan Term (years)} \times 12$
  
  $n = Loan Term (years) \times 12$
If

$\text{Interest Rate} = 0$ $Interest Rate = 0$ , the payment is simply

$\frac{\text{Loan Amount}}{n}$ $n Loan Amount$ .
Monthly Operating Expenses

$\text{Monthly OpEx} = \text{Base Monthly Expenses} + \frac{\text{Annual Property Tax} + \text{Annual Insurance} + \text{Annual Maintenance}}{12}$ $Monthly OpEx = Base Monthly Expenses + 12 Annual Property Tax + Annual Insurance + Annual Maintenance$
Monthly Net Rent (accounting for vacancies)

$\text{Monthly Net Rent} = \text{Monthly Rent} – (\text{Monthly Rent} \times \frac{\text{Vacancy Rate}}{100})$ $Monthly Net Rent = Monthly Rent - (Monthly Rent \times 100 Vacancy Rate)$
Monthly Net Cash Flow

$\text{Monthly Net Cash Flow} = \text{Monthly Net Rent} – \text{Monthly OpEx} – \text{Monthly Mortgage Payment}$ $Monthly Net Cash Flow = Monthly Net Rent - Monthly OpEx - Monthly Mortgage Payment$
Annual Net Cash Flow

$\text{Annual Net Cash Flow} = \text{Monthly Net Cash Flow} \times 12$ $Annual Net Cash Flow = Monthly Net Cash Flow \times 12$
Net Operating Income (NOI)

$\text{NOI (annual)} = (\text{Monthly Net Rent} – \text{Monthly OpEx}) \times 12$ $NOI (annual) = (Monthly Net Rent - Monthly OpEx) \times 12$
Cap Rate

$\text{Cap Rate} = \frac{\text{NOI}}{\text{Purchase Price}} \times 100$ $Cap Rate = Purchase Price NOI \times 100$
Cash on Cash Return

$\text{CoC Return} = \frac{\text{Annual Net Cash Flow}}{\text{Down Payment}} \times 100$ $CoC Return = Down Payment Annual Net Cash Flow \times 100$

(Assuming the Down Payment is your main cash invested.)
Debt Service Coverage Ratio (DSCR)

$\text{DSCR} = \frac{\text{NOI}}{\text{Annual Mortgage Payment}}$ $DSCR = Annual Mortgage Payment NOI$

Creator

Shakeel Muzaffar

Founder & Editor-in-Chief at MultiCalculators ~ Web ~ More Posts

Shakeel Muzaffar is the Founder and Editor-in-Chief of MultiCalculators.com, bringing over 15 years of experience in digital publishing, product strategy, and online tool development. He leads the platform's editorial vision, ensuring every calculator meets strict standards for accuracy, usability, and real-world value. Shakeel personally oversees content quality, formula verification workflows, and the platform's commitment to publishing tools that are genuinely useful for students, professionals, and everyday users worldwide.

Areas of Expertise: Editorial Leadership, Digital Publishing, Product Strategy, Online Calculators, Web Standards

Real Estate ROI Calculator