Quick answer
Real estate ROI = profit ÷ (purchase price + costs), where profit = sale − purchase + net income − costs. Buying at $250,000, selling at $300,000 with $24,000 of net income and $12,000 of costs gives $62,000 of profit and a 23.66% ROI.
Enter purchase price, sale price, net income while owning and buying and selling costs. The calculator returns ROI and total profit.
Related tools: Rental Property Calculator: Cash flow, cap rate and cash-on-cash return of a rental. Cap Rate Calculator: Capitalization rate of an income property. Cash on Cash Return Calculator: Annual pre-tax cash flow relative to the cash you invested.
How to use the Real Estate ROI Calculator
- Enter purchase price ($) (above 0).
- Enter sale price ($) (0 or more).
- Enter net income during ownership ($).
- Enter buying and selling costs ($) (0 or more). It starts at 0.
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Purchase price | A number, in $ | > 0 |
| Sale price | A number, in $ | ≥ 0 |
| Net income during ownership | A number, in $ | — |
| Buying and selling costs | A number, in $ | ≥ 0, starts at 0 |
Formula and method
Formula
profit = sale − purchase + income − costs; ROI = profit ÷ (purchase + costs)
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Pre-tax and not annualized.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Purchase price = 250000; Sale price = 300000; Net income during ownership = 24000; Buying and selling costs = 12000.
| Result | Value |
|---|---|
| ROI | 23.6641% |
| Total profit | $62,000.00 |
Example 2
Inputs: Purchase price = 180000; Sale price = 170000; Net income during ownership = 9000; Buying and selling costs = 5000.
| Result | Value |
|---|---|
| ROI | -3.2432% |
| Total profit | -$6,000.00 |
The first line is the headline result (rOI). Below it the real Estate ROI Calculator lists total profit, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
The numbers
Profit = 300,000 − 250,000 + 24,000 − 12,000 = $62,000. The cost base is 250,000 + 12,000 = $262,000, so ROI = 62,000 ÷ 262,000 = 23.66%.
Annualise and adjust
ROI doesn't account for the holding period: 23.66% over five years is about 4.3% a year. Taxes, inflation and financing aren't included. Negative income (losses) is allowed.
How the result changes with purchase price
Holding every other input at the first worked example, this table changes only purchase price. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Purchase price | ROI | Total profit |
|---|---|---|
| 125000 | 136.4964% | $187,000.00 |
| 250000 | 23.6641% | $62,000.00 |
| 500000 | -36.7188% | -$188,000.00 |
| 1000000 | -67.9842% | -$688,000.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Purchase price: entering "0" shows "Purchase price must be greater than 0." beside that field and no result.
- Net income during ownership: left empty shows "Enter net income during ownership." beside that field and no result.
Choosing between the Real Estate ROI Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Rental Property Calculator](/real-estate/rental-property-calculator/) | purchase price, down payment and mortgage rate | Annual cash flow |
| [Cap Rate Calculator](/real-estate/cap-rate-calculator/) | net operating income and property value | Cap rate |
| [Cash on Cash Return Calculator](/real-estate/cash-on-cash-return-calculator/) | annual pre-tax cash flow and total cash invested | Cash-on-cash return |
| [House Flipping Profit Calculator](/real-estate/house-flipping-profit-calculator/) | purchase price, renovation cost and holding costs | Profit |
| [Rental Yield Calculator](/real-estate/rental-yield-calculator/) | monthly rent and property price | Gross yield |
Background: rental property metrics
Rental property metrics answer different questions. The cap rate is net operating income divided by the purchase price and ignores financing; cash flow is income minus operating expenses minus debt service; cash-on-cash return divides annual cash flow by the cash you actually invested. Rules of thumb such as the 1% rule (monthly rent at least 1% of the price) are quick screens, not decisions.
Check the assumptions behind any result: vacancy, management fees, repairs and taxes. Published benchmark ranges for a good cap rate or return vary between sources.
Assumptions and limitations
- Negative income (losses) is allowed
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for purchase price and net income during ownership to confirm this.
Frequently asked questions
How do I annualise?
Use the CAGR formula.
Does ROI include the mortgage?
Not in this version.
Is a high ROI always better?
Compare against the time and risk.
What does the Real Estate ROI Calculator calculate?
Total return on a property from sale gain and net income. It returns ROI and Total profit.
What formula does the Real Estate ROI Calculator use?
profit = sale − purchase + income − costs; ROI = profit ÷ (purchase + costs). Pre-tax and not annualized.
What do I need to enter in the real Estate ROI Calculator?
You enter Purchase price ($), Sale price ($), Net income during ownership ($) and Buying and selling costs ($).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Negative income (losses) is allowed.
What is an example of a real Estate ROI result?
With purchase price 250000, sale price 300000, net income during ownership 24000 and buying and selling costs 12000, the rOI is 23.6641%.
Can I rely on this calculator for a decision?
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional. For this calculator in particular: Negative income (losses) is allowed.
Related calculators
- Rental Property Calculator — Cash flow, cap rate and cash-on-cash return of a rental.
- Cap Rate Calculator — Capitalization rate of an income property.
- Cash on Cash Return Calculator — Annual pre-tax cash flow relative to the cash you invested.
- House Flipping Profit Calculator — Profit and return on cost of a renovate-and-sell project.
- Rental Yield Calculator — Gross and net rental yield on a property.
- Vacancy Rate Calculator — Share of rental units that are vacant, with optional lost rent.
- Real Estate Commission Calculator — Commission on a sale and an agent's share after a split.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.