Real Estate ROI Calculator
A real estate ROI calculator estimates return by comparing projected gain to the cost or cash invested. ROI can be useful, but it must be defined clearly because investors calculate it in different ways.
Estimates are based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, tax, or lending advice.
Run the number, then pressure-test the assumptions.
A real estate ROI calculator estimates return by comparing projected gain to the cost or cash invested. ROI can be useful, but it must be defined clearly because investors calculate it in different ways.
Use this page to understand the metric directionally, then compare it against financing, reserves, repair risk, cash flow, and your own constraints.
Use this working calculator as a starting point, then run the full deal in DealSharp when you need more inputs, side-by-side scenarios, and risk context.
ROI = projected gain / investment basis
If projected gain is $20,000 and the investment basis is $100,000, estimated ROI is 20%.
Assumptions
Real estate ROI
Estimated outputs
Scenario snapshot
Scenario estimate based on the inputs shown here. Use the full DealSharp app to compare financing, repairs, vacancy, cash flow, and risk assumptions before deciding.
How to read this number
The useful move is not treating one number as a final answer. Use it to decide which assumptions deserve more review, then compare the result against cash flow, financing, reserves, repair risk, and your own constraints.
Inputs required
- Metric inputs shown in the formula or calculator.
- Income, expense, debt, value, and cash assumptions where relevant.
- Investor-provided numbers that should be checked against source documents.
Outputs explained
- Scenario estimate based on the inputs.
- Plain-English context for comparing the metric.
- Limitations and assumptions to review before relying on the result.
Assumptions to review
- Inputs are estimates supplied by the user.
- Market rent, lender terms, taxes, insurance, repairs, and legal details can change the result.
- DealSharp does not provide financial, investment, legal, lending, tax, or accounting advice.
What this tells you
- ROI helps compare broad scenarios when the numerator and denominator are consistent.
- It can model flip profit, rental cash flow, refinance outcomes, or total return, depending on inputs.
- Clear labels matter more than a single return number.
What this does not tell you
- ROI does not guarantee future performance.
- It may ignore time, risk, taxes, financing, reserves, and exit costs unless the model includes them.
Common mistakes
- Comparing ROI calculations that use different definitions.
- Ignoring sale costs or holding costs.
- Treating projected appreciation as certain.
FAQ
Is ROI the same as cash-on-cash return?
No. Cash-on-cash return usually measures annual cash flow against cash invested. ROI can include broader gain or exit assumptions.
Should ROI include appreciation?
Only if you clearly label it as a projected scenario and understand that appreciation is uncertain.
Run the full deal before deciding
This page helps with one metric or workflow. DealSharp is built for full real estate deal analysis: assumptions, financing, cash flow, repair scenarios, DSCR, cap rate, and risk flags based on your inputs.
Open DealSharpDisclaimer
DealSharp provides calculation and scenario-modeling tools for informational purposes only. Outputs are estimates based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, lending, tax, or accounting advice. Verify important decisions with qualified professionals.