Free Rental Property ROI Calculator
Calculate total return on investment for a rental property including cash flow, appreciation, and equity buildup.
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Total Annual ROI
31.9%
Total Annual Return$25,500
Cash-on-Cash Return7.5%
Total Annual ROI vs Total Cash Invested
Total Return on Rental Property
Rental property ROI captures all four wealth-building components of real estate investing.
Formula
Total ROI = (Cash Flow + Paydown + Appreciation + Tax Benefit) / Cash Invested x 100
Four Pillars of Return
1. Cash Flow: Net income after all expenses and debt service 2. Principal Paydown: Equity gained as tenants pay down your mortgage 3. Appreciation: Property value increase over time 4. Tax Benefits: Depreciation and deduction savings
Example Calculation
$80,000 invested with $6,000 cash flow, $4,500 paydown, $12,000 appreciation, $3,000 tax benefit annually.
- 01Total annual return: $6,000 + $4,500 + $12,000 + $3,000 = $25,500
- 02Total ROI: $25,500 / $80,000 x 100 = 31.9%
- 03Cash-on-cash return: $6,000 / $80,000 x 100 = 7.5%
- 04The total ROI of 31.9% shows the power of combining all return components