Real Estate ROI Calculator
Calculate return on investment for residential or commercial property
Property Details
Typically 5–8% depending on state.
Enter 0 if not renting out.
Loan Details (Optional)
Enter 0 if no loan.
Enter property details and click Calculate ROI
Net Profit
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Future Property Value
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Total Cost of Acquisition
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Total ROI
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CAGR
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Rental Yield
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Total Rental Income
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| Component | Amount |
|---|
How to Use
- Enter the Purchase Price and registration/stamp duty percentage (typically 5–7% depending on state).
- Enter any Renovation Cost (₹) and Annual Maintenance Cost.
- Enter Monthly Rental Income if the property is rented out (leave 0 if self-occupied).
- Set Expected Appreciation Rate (% p.a.) and Holding Period (years).
- Optionally enter Loan Details if the property is financed — loan EMI and interest cost are factored in.
- Click Calculate to see Net Profit, Total ROI %, CAGR, and Rental Yield.
Real Estate Returns — The Full Picture
Real estate returns come from two sources: capital appreciation (property value increase) and rental income. Most investors focus only on appreciation and ignore the full cost of ownership — stamp duty, registration, maintenance, loan interest, and property tax. This calculator shows the complete picture.
Total Cost of Ownership
| Cost Component | Typical Range |
|---|---|
| Stamp Duty | 3–7% of property value (varies by state) |
| Registration Fee | 1% of property value |
| GST (under-construction) | 1–5% (affordable vs regular) |
| Brokerage | 1–2% (buyer's side) |
| Interior/Renovation | ₹500–2,000 per sq ft |
| Society Maintenance | ₹2–10 per sq ft per month |
Rental Yield in Indian Cities
| City | Gross Rental Yield |
|---|---|
| Mumbai (premium) | 2–3% |
| Bengaluru / Hyderabad | 3–4% |
| Pune / Chennai | 3–4% |
| Delhi NCR | 2.5–3.5% |
| Tier-2 cities | 4–6% |
Real Estate vs Mutual Funds (Long-term)
- Indian real estate has delivered ~7–10% CAGR appreciation over 10 years in most cities.
- Nifty 50 SIP over the same period: ~12–14% CAGR.
- However, real estate provides a tangible asset, rental income, and psychological security that equity cannot.
- Net real estate returns (after all costs) are often 4–7% effective — compare honestly before deciding.
Frequently Asked Questions
Net ROI (after stamp duty, registration, maintenance, and loan interest) of 7–10% CAGR is considered good for residential property. Prime metros (Mumbai, Delhi) often show lower ROI (5–8%) due to high purchase prices relative to rent and appreciation. Tier-2 cities (Pune, Hyderabad, Bengaluru suburbs) often deliver 8–12%. Commercial real estate can yield 7–10% rental yield but requires more capital. Always compare against Nifty 50 SIP (12–14% CAGR) to assess opportunity cost.
For self-occupation: buying makes sense if you plan to stay 7+ years (enough time to recover transaction costs through appreciation), have a 20–30% down payment ready, and EMI is below 35% of take-home salary. As pure investment: the math often favours equity mutual funds for higher returns with more liquidity. Real estate makes more sense as portfolio diversification (5–15% of net worth) rather than the dominant investment.
Stamp duty is a state government tax on property transactions, typically 3–7% of the property value. Rates vary significantly: Maharashtra: 5–6% (women buyers: 4%), Karnataka: 5%, Delhi: 4% (women: 2%), UP: 7%. Registration fee is an additional 0.5–1% nationally. These costs are paid upfront and not recoverable — they're a key reason why short-term real estate investing is rarely profitable.
Yes — for a let-out (rented) property, entire home loan interest is deductible from rental income under Section 24(b) with no ₹2L cap (unlike self-occupied property where the cap is ₹2L). Principal repayment is deductible under 80C (within ₹1.5L limit). If rental income after deductions results in a loss, it can be set off against other income up to ₹2L per year; excess loss can be carried forward for 8 years.