Rental Property ROI Calculator
Model a longer rental hold with the return sources kept separate. Enter your initial cash, annual cash flow, principal paydown, appreciation scenario, holding period, and selling costs to estimate total profit, ROI, and an annualized return.
Best for
Make the next pricing or planning decision with context
Check whether the campaign or investment behind the property scenario earns back its cost before you scale it. It covers rental property profit from cash flow, principal paydown, appreciation, and selling costs over a holding period.
Instant calculations · Editable fee assumptions · Export-ready results
Inputs
Values update results instantly. Adjust fee assumptions to match your seller dashboard.
Your figures are saved in this browser on this device.
Property
Editable scenario, not a promise about future value.
Investment
Down payment and other cash committed at purchase.
Use a rental cash flow estimate after debt service.
Estimated loan principal reduction per year.
Exit
Commission and selling expenses as a share of future value.
Results
Live estimates based on your inputs and editable fee assumptions.
Estimated appreciation
$47,782.22
Change in modeled property value.
Estimated future value
$347,782.22
Purchase price plus modeled appreciation.
Estimated selling costs
$20,866.93
Selling-cost rate applied to future value.
Principal paydown
$20,000.00
Modeled loan balance reduction.
Cumulative cash flow
$12,000.00
Annual cash flow repeated over the hold.
Total estimated profit
$58,915.29
Return sources less selling costs.
Total ROI
73.6%
Estimated profit divided by initial cash invested.
Annualized ROI
11.7%
Compounded annual view when inputs support it.
What this means
This 5-year scenario estimates $58,915.29 of total profit, 73.6% total ROI, and 11.7% annualized ROI. Appreciation is an editable assumption, not a forecast.
Rental property return sources
Interactive breakdown of fees, costs, and remaining profit.
Distribution
- Appreciation$47,782.2247.5%
- Principal paydown$20,000.0019.9%
- Cumulative cash flow$12,000.0011.9%
- Selling costs$20,866.9320.7%
Total $100,649.16 · 4 segments · interactive
Line-item breakdown
Dollar amounts, share of revenue, and visual proportion.
- Estimated appreciation
- $47,782.22
- Estimated future value
- $347,782.22
- Selling costs
- $20,866.93
- Principal paydown
- $20,000.00
- Cumulative cash flow
- $12,000.00
- Total estimated profit
- $58,915.29
- Total ROI
- 73.6%
- Annualized ROI
- 11.7%
Assumptions used
- • Appreciation 3.0% annually for 5 years
- • Selling costs 6.0% of estimated future value
- • Pre-tax model with no guarantee of future property value
Your next best moves
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Explore Real Estate InvestingRental Property ROI Calculator
Generated 9/10/2026, 1:22:06 AM · Currency USD
Inputs
- Purchase price: 300000
- Initial cash invested: 80000
- Annual pre-tax cash flow: 2400
- Annual principal paydown: 4000
- Annual appreciation rate: 3
- Holding period: 5
- Selling-cost rate: 6
Results
- Estimated appreciation: $47,782.22
- Estimated future value: $347,782.22
- Selling costs: $20,866.93
- Principal paydown: $20,000.00
- Cumulative cash flow: $12,000.00
- Total estimated profit: $58,915.29
- Total ROI: 73.6%
- Annualized ROI: 11.7%
Interpretation
This 5-year scenario estimates $58,915.29 of total profit, 73.6% total ROI, and 11.7% annualized ROI. Appreciation is an editable assumption, not a forecast.
How it works
Methodology & formulas
This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.
Calculation steps
- 1Estimated future value = purchase price × (1 + appreciation rate ÷ 100) ^ holding years.
- 2Appreciation = estimated future value − purchase price.
- 3Principal paydown = annual principal paydown × holding years.
- 4Cumulative cash flow = annual cash flow × holding years.
- 5Total profit = appreciation + principal paydown + cumulative cash flow − selling costs.
- 6Total ROI = total profit ÷ initial cash invested × 100. Annualized ROI uses the ending value when it is positive.
Formulas
- Future value = price × (1 + appreciation%) ^ years
- Selling costs = future value × selling-cost%
- Profit = appreciation + principal paydown + cumulative cash flow − selling costs
- ROI = profit ÷ initial cash × 100
- Annualized ROI = ((initial cash + profit) ÷ initial cash) ^ (1 ÷ years) − 1
Important assumptions
- Appreciation compounds the purchase price at the editable annual rate for the holding period.
- Annual cash flow and principal paydown repeat evenly across each modeled year.
- Selling costs apply to estimated future value and reduce total estimated profit.
- The model is pre-tax. It excludes depreciation recapture, income taxes, financing changes, repairs beyond the cash flow input, and other sale adjustments.
- Appreciation is an editable scenario with no guarantee of future property value. Results are not legal, tax, lending, appraisal, or investment advice.
Sources & review
Know what this estimate is built on
This calculator is intentionally platform-agnostic, so it does not attach a platform fee URL.
Official references
No single official fee page is attached here. The model keeps these inputs editable so you can use the terms that apply to your situation.
Use the current terms
This model uses editable planning assumptions. Confirm tax, payment, financing, or operating terms with the relevant provider, official authority, or adviser for your situation.
Defaults are editable estimates. Match them to your current account, provider statement, official authority, lender, or adviser before making a pricing or investment decision.
Calculator model reviewed: August 9, 2026. This date covers the page and calculator guidance, not a guarantee that every live platform rate or term was re-audited on that date.
Worked example
Five-year rental hold
$300,000 purchase, $80,000 initial cash, $2,400 annual cash flow, $4,000 annual principal paydown, 3% appreciation, five years, and 6% selling costs.
FAQ
Common questions
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