Is the return annualized or based on every dollar later invested?

No. It is cumulative profit divided by the initial down payment. Ongoing cash deficits are not added to that denominator.

How are mortgage principal payments treated?

They are mortgage cash outflows and reduce the loan remaining at sale. Equity from principal repayment is not added again as a separate profit.

Does the sale estimate predict market value or after-tax profit?

No. Appreciation is entered as a scenario, and the listed transaction costs and taxes are excluded.

Real Estate ROI Calculator

Estimate cumulative return on initial down payment from fixed rent, operating costs, nominal mortgage payments and an entered end-of-hold sale scenario.

Property & Loan Details

Purchase Price

$50,000$2,000,000

Down Payment

0%100%

Nominal annual mortgage interest rate

0%15%

Loan Term

years

0.083 years50 years

Holding Period

years

0 years50 years

Income & Expenses

Monthly Rental Income

$0$10,000

Annual Appreciation

-20%20%

Property Tax Rate

0%5%

Annual Home Insurance

$0$10,000

Annual Maintenance

0%10%

Monthly HOA Fees

$0$1,000

Fixed monthly rent and fixed operating costs; tax and maintenance are percentages of purchase price. Fixed-rate month-end mortgage payments stop at payoff. Sale at the end of the holding period uses your entered appreciation assumption. Excludes transaction and financing fees, vacancy, rent/cost growth, PMI, income and capital-gains taxes, and reinvestment. Appreciation is a scenario, not a forecast.

Scope: fixed nominal mortgage interest and end-of-hold sale, not an APR including fees or a forecast. Existing initial-down-payment ROI is cumulative and not annualized; ongoing cash deficits are not added to its denominator. CFPB

Investment Results

Return on initial down payment

154.46%

Profit ÷ initial down payment; not annualized. Ongoing cash deficits are not added to this denominator.

Profit before excluded costs

$92,676.62

Profit = sale value − remaining loan + holding-period cash flow − initial down payment. Principal repayment builds equity; it is also included in mortgage cash outflows.

Year-one cash flow

$-4,703.56

NOI minus debt service

Cap rate

4.50%

Property's annual return

Remaining loan at sale

$203,462.70

Sale equity

$199,712.21

Holding-period cash flow

$-47,035.59

Initial down payment

$60,000.00

Fixed rent/costs; tax and maintenance use purchase price. Excludes transaction/financing fees, vacancy, PMI, income/capital-gains taxes, rent/cost growth and reinvestment. Entered appreciation is not a forecast.

Return Breakdown (Over 10 Years)

Financial Summary

Loan Amount: $240,000.00

Monthly Mortgage: $1,516.96

Net Operating Income: $13,500.00/year

Initial down payment $60,000.00

Interest paid during hold $145,498.29

Principal paid during hold $36,537.30

Future Property Value: $403,174.91

Expense Breakdown (Annual)

Mortgage: $18,203.56

Property Tax: $3,600.00

Insurance: $1,500.00

Maintenance: $3,000.00

HOA Fees: $2,400.00

Return on the initial down payment

Profit equals sale value minus the remaining loan, plus holding-period cash flow, minus initial down payment. Return is this profit divided by the initial down payment; it is cumulative, not annualized. Later cash deficits are not added to the denominator. With no initial down payment, that return ratio is unavailable. Loan and holding periods use whole months, including immediate sale at a zero holding period.

Rent and operating costs remain fixed. Property tax and maintenance use purchase price; month-end mortgage payments use a fixed nominal annual interest rate and stop at payoff. Sale value uses entered appreciation, a scenario rather than a forecast. Transaction and financing fees, vacancy, rent or cost growth, PMI, income and capital-gains taxes and reinvestment are excluded. Numerically unresolved differences are unavailable rather than given a false profit sign.