Rental Property ROI Calculator
A more complete return picture than rental yield alone: factor in your down payment, home loan EMI, rent, expenses and expected appreciation to see cash-on-cash ROI and total return on your invested capital over your holding period.
Purchase & Loan
Rent, Expenses & Assumptions
Rent and expenses are held flat for simplicity over the holding period; appreciation compounds annually. Both are editable assumptions, not guarantees -- investment and property returns are never assured.
Results
Cash-on-Cash ROI (Year 1)
Annualized Total ROI
How This Rental Property ROI Calculator Works
Unlike a simple rental yield figure, this calculator accounts for financing: it computes your home loan EMI from the loan amount, interest rate and tenure, then works out your annual net cash flow (rent minus expenses minus EMI). Cash-on-cash ROI compares that net cash flow against your actual cash invested (the down payment) -- the metric most relevant when you're financing most of the purchase with a loan. It then adds in appreciation over your holding period to show a total ROI and a simple annualized figure.
Why Cash Flow Can Be Negative Even On a Profitable Property
It's common for a leveraged rental property to have negative monthly cash flow (EMI exceeds rent) in the early years, while still being a good long-term investment once appreciation is factored in -- you're effectively using rental income to offset most of a loan payment that's building equity in an appreciating asset. Whether that trade-off makes sense depends on your cash flow tolerance and how confident you are in the appreciation assumption.
Why These Are Assumptions, Not Guarantees
Loan interest rates, rental income and property appreciation are all editable assumptions here, not promises. Actual rental income can vary with vacancy and tenant turnover, and property appreciation is never guaranteed -- it depends on location, infrastructure development and market cycles. Use conservative assumptions for planning purposes.
Is my data sent to any server?
No. Every calculation happens directly in your browser using JavaScript. Nothing you enter is ever transmitted to OurPaisa Tools' servers or stored anywhere -- close the tab and it's gone.
Disclaimer: This tool provides an estimate for general informational purposes only and does not constitute financial or investment advice. Rental income and property appreciation are never guaranteed. See our Disclaimer and Terms of Use for more detail.