Property Investment ROI — How to Calculate Real Estate Returns

Use the Free Calculator

Try our Roi Calculator — instant results, no sign-up.

Overview

Property investment returns come from two sources: rental income and capital appreciation. Calculating both correctly avoids overpaying for under-performing assets.

The Formula

Gross Yield = Annual Rent ÷ Property Price × 100 | Net Yield = (Annual Rent − Costs) ÷ Price × 100

Standard formula used by professionals worldwide

Worked Example

Step-by-step

Property 2,000,000 | Rent 15,000/month = 180,000/year | Gross yield = 9% | After costs (20%) → Net 7.2%

Key Points

Accuracy: Results are as accurate as your inputs
Units: Always use consistent units throughout
Privacy: All CalcHub Pro calculations run in your browser — no data sent anywhere

Frequently Asked Questions

What is a good rental yield?

5-8% is considered solid in most markets. Below 4% may not cover financing costs.

How is capital appreciation calculated?

(Current Value − Purchase Price) ÷ Purchase Price × 100. Add to yield for total return.

What costs reduce net yield?

Maintenance (1-2% of value annually), management fees (8-12%), insurance, void periods, tax.

𝕏 Share 💬 WhatsApp

Ready to Calculate?

Free, instant, no sign-up.

Open Roi →