Investment Returns · Free Tool
ROI & Capital Appreciation Calculator
See how much your property could be worth, how much it appreciates, and the true return on the cash you invest.
Property & Holding
Compounded every year. Use a negative value to test a price fall.
Loan amount: ₹60,00,000 (price − down payment)
Set 0 if you will live in the property.
ROI
40.45%
7.03% a year
Future Property Value
₹1.1 Cr
Capital Appreciation
₹27.1 L
33.82%
Returns Breakdown
- Down payment
- ₹20,00,000
- Purchase costs + renovation
- ₹6,00,000
- Total investment (your cash)
- ₹26,00,000
- Capital appreciation
- ₹27,05,805
- Net rental income over 5 yrs
- ₹13,57,689
- Less: purchase costs + renovation
- − ₹6,00,000
- Less: loan interest paid over 5 yrs
- − ₹24,11,795
- Total profit
- ₹10,51,699
- ROI = profit ÷ investment
- 40.45%
₹80,00,000 → ₹1,07,05,805
Real prices do not rise in a straight line. Treat this as a scenario, not a forecast.
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How this calculator works
Return on investment (ROI) compares the total profit from a property with the cash you put in. Your cash investment is the down payment plus purchase costs (stamp duty, registration, brokerage) plus any renovation.
Profit has two parts. Rental profit is rent (rising each year by the increase you set) minus annual expenses, over the holding period. Capital gain is the selling price minus the purchase price. From these, the calculator subtracts the one-time purchase and renovation costs and the loan interest you pay while you hold the property.
Capital appreciation can come from an annual growth rate (compounded every year) or from a selling price you expect. Choosing a growth rate also shows the projected value year by year.
The annualised figure spreads the total ROI over the holding period as a compound yearly rate, so properties held for different lengths of time can be compared.
Formula
Total Investment = Down Payment + Purchase Costs + Renovation
Net Profit = Σ(Rent − Expenses) + (Sale − Purchase Price) − Purchase Costs − Renovation − Loan Interest
ROI = (Net Profit ÷ Total Investment) × 100
Annualised ROI = (1 + ROI)^(1 / years) − 1
Future Value = Price × (1 + g)ᵗ (when using an appreciation rate g)
Assumptions
- Loan amount = purchase price − down payment, repaid with a standard EMI. Only the interest portion counts as a cost. Principal repaid comes back to you on sale.
- Expenses stay flat. Rent rises at the rate you set.
- Income tax, capital gains tax and selling costs are not deducted. Include selling costs by lowering the expected selling price.
- Cash flows are not discounted for the time value of money.
Frequently asked questions
What capital appreciation rate should I assume?
Look at long-term price trends for the specific micro-market and property type rather than national averages. Infrastructure such as metro lines and expressways can change a locality’s trajectory, but past growth does not guarantee future growth. Try a conservative rate too.
What is a good ROI on property in India?
It depends on location, holding period and leverage. Compare the annualised ROI with what the same money could earn elsewhere at similar risk, such as fixed deposits, debt funds or equities.
Why does a loan increase ROI?
Leverage means you control the whole property with less of your own cash. If the property’s growth and rent beat the loan interest, ROI on your cash rises. If they do not, losses are magnified too.
Is ROI the same as rental yield?
No. Rental yield only looks at annual rent relative to price. ROI includes capital appreciation, all costs, financing and the full holding period.
Should I include the EMI principal as an investment?
This calculator treats your upfront cash as the investment and counts only interest as a cost, since principal repaid is recovered when you sell. EMIs themselves are not counted, because the principal part comes back to you as equity.
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