Free Calculator
ROI Calculator
Return on investment for a rental has three engines: cash flow, mortgage principal paydown and value change. This tool adds all three over your holding period.
Results
- Total gain
- $152,959
- Total ROI
- 93%
- Annualised ROI
- 14.1%
- Value growth over period
- $75,459
Assumption, not a forecast.
Want the complete analysis?
Valuation, comparables, risk flags, stress tests and your maximum offer — analyzed with AI.
Analyze the property with AIThe formula
ROI = (Cash Flow + Principal Paydown + Appreciation) ÷ Cash Invested
Appreciation is an assumption, not a fact. Run the calculation at 0% growth to see whether the deal still works.
Worked example
- $164,000 invested, $5,100 annual cash flow over 5 years = $25,500.
- Principal paydown across those years is roughly $52,000.
- At 2% annual appreciation, a $725,000 property gains about $75,000.
- Total gain $152,500 ÷ $164,000 invested = 93% total ROI, or about 14% annualised.
How to read the result
Separate the returns you control from the ones you assume. Cash flow and paydown are largely mechanical; appreciation is a forecast.
Selling costs matter. Commission, legal fees and any capital gains tax reduce the realised return substantially.
Annualised ROI is easier to compare against other investments than a headline total percentage.
Frequently asked
Is ROI the same as IRR?
No. ROI ignores the timing of cash flows; IRR accounts for when each dollar arrives. For multi-year holds, IRR is the more accurate comparison.
Should I assume appreciation?
Underwrite at low or zero growth and treat appreciation as upside. Deals that only work with aggressive growth assumptions are speculative.
A calculator answers one question. PropertyEdge makes the whole decision.
Run the whole property — NOI, valuation, financing, risks, stress tests, your maximum offer and a BUY / NEGOTIATE / PASS verdict, with every assumption labelled.
- Free to start
- No credit card to start
- Every assumption labelled
- Calculations kept separate from AI interpretation
Ontario benchmarks by city
Local prices, rents, property tax and land transfer tax — the inputs this calculator needs.
- See Toronto benchmarks
- See Hamilton benchmarks
- See Mississauga benchmarks
- See Ottawa benchmarks
- See London benchmarks
- See Kitchener-Waterloo benchmarks
- See Burlington benchmarks
- See Oakville benchmarks
- See Brampton benchmarks
- See Niagara benchmarks
- See Guelph benchmarks
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- Rental Property Calculator
- Mortgage Calculator
- Maximum Offer Calculator
PropertyEdge provides analysis and estimates for informational purposes only. It is not investment, tax, legal or appraisal advice, and no return or investment outcome is guaranteed. Estimates are modelled from the assumptions shown and must be verified against leases, inspections, tax bills and municipal records before you make an offer.