Return on Real Estate Investment Calculator

What is the return on my real estate investment?

Purchase price, loan terms, appreciation rate, taxes, expenses and other factors must be considered when you evaluate a real estate investment. Use this calculator to help you determine your potential IRR (internal rate of return) on a property.

Purchase price ($)

Market Value (if different from Purchase price) ($)

Cash invested ($)

Depreciable value (0% to 300%)

"Interest-Only" Loan? (Y/N)

Loan amount (may include estimated Rehab) ($)

Interest rate (0% to 40%)

Term (years) (1 to 50)

Closing costs ($)

Gross rental income ($)

Income frequency

Annual rent increases (0% to 10%)

Occupancy Rate (0% to 100%)

Annual property tax ($)

Annual insurance ($)

Annual maintenance ($)

Annual HOA ($)

Annual increase in expenses (0% to 10%)

Duration of analysis (years) (0 to 20)

Realtor fees upon future sale (0% to 40%)

Annual appreciation rate (0% to 75%)

Marginal tax bracket (0% to 75%)

Long-term capital gains bracket (0% to 75%)

What is a Return on Real Estate Investment Calculator?

A Return on Real Estate Investment Calculator is an essential online tool that helps Canadian investors evaluate the potential profitability of commercial real estate investments. This free calculator analyzes key financial metrics to determine whether a property will generate acceptable returns, helping investors make informed decisions in Canada's competitive market.

How To Use Return on Real Estate Investment Calculator

To get accurate results, you'll need to input information in five main sections:

Purchase Information:
- Purchase price ($)
- Cash invested ($)
- Market value (if different from purchase price) ($)
- Depreciable value (0% to 300%)
- Click 'Next'
Debt Information:
- "Interest-Only" loan option (Y/N)
- Interest rate
- Closing costs ($)
- Loan amount ($)
- Term (years)
- Click 'Next'
Income Details:
- Gross rental income ($)
- Annual rent increases (0% to 10%)
- Income frequency (monthly or annual)
- Occupancy rate (0% to 100%)
- Click ‘Next’
Expenses:
- Annual property tax ($)
- Annual maintenance ($)
- Annual increase in expenses (0% to 10%)
- Annual insurance ($)
- Annual HOA ($)
- Click ‘Next’
Other Information:
- Duration of analysis (years)
- Annual appreciation rate (0% to 75%)
- Long-term capital gains bracket (0% to 75%)
- Realtor fees upon future sale (0% to 40%)
- Marginal tax bracket (0% to 75%)
- Click ‘Calculate’

How to Interpret the Results

The calculator generates several important metrics:

Cash-on-Cash Return: Shows annual cash flow relative to your initial investment
Capitalization Rate (Cap Rate): Indicates the property's potential return regardless of financing
Net Operating Income (NOI): Reveals your annual income after expenses
Return on Investment (ROI): Displays total return, including appreciation

Related Calculators

Explore these other financial calculators to optimize your decision-making for your business and commercial properties:

Mortgage Calculator: Essential for calculating monthly payments and total costs of financing property purchases
Business Valuation Calculator: Helps investors evaluate property values based on potential future profits/rental income
APR Calculator: Useful for comparing different financing options and understanding true borrowing costs
Debt-to-Equity Calculator: Important for assessing leverage and risk when using financing for real estate investments
Refinance Calculator: Allows investors to evaluate potential savings from refinancing investment properties

Why this Marketplace was Created

Frustrated by the timely process of searching for businesses and commercial properties on the market, the founders at Businesses 4 Sale created a platform to transform the business/commercial property buying and selling experience. The database compiles the most relevant information from multiple industry sources, making it easy for future business/commercial property owners and sellers to find exactly what they are looking for.