ROI Calculator for Real Estate Investments

What Is ROI in Real Estate?

Return on Investment (ROI) measures the gain or loss on an investment relative to its cost. It is expressed as a percentage and provides a straightforward snapshot of how efficiently your capital performed over a given period.

For a flip, ROI might measure profit on total project cost. For a rental, it might measure total return including cash flow and appreciation over your hold period.

Basic ROI Formula

ROI = (Gain from Investment − Cost of Investment) ÷ Cost of Investment × 100

For a simple flip: if you invested $150,000 total (purchase, rehab, holding costs) and sold for $210,000 net of selling costs, your gain is $60,000 and ROI is 40%.

ROI Limitations

Basic ROI does not account for time. A 40% ROI over six months is exceptional; the same ROI over five years is mediocre. For time-sensitive analysis, pair ROI with annualized return metrics like IRR or annualized ROI.

ROI also does not capture risk, leverage effects, or tax implications. Use it as a starting point, not the final word on a deal.

Calculate ROI Instantly

Our ROI calculator gives you an immediate percentage based on your gain and total cost. Use it for quick deal screening, then dive deeper with cap rate, cash on cash, or IRR calculators for a complete picture.