Estimate annual cash flow, projected appreciation, total profit, cash-on-cash return, and a simplified hold-period ROI.
The Buy-and-Hold Real Estate ROI Calculator validates every input, normalizes monthly and annual amounts, and calculates cash invested, rental cash flow, appreciation, total profit, and simplified ROI from one consistent scenario.
Annual cash flow C = monthly rent × 12 − annual expenses − monthly mortgage × 12. Future value = purchase price × (1+appreciation)^years. Simplified profit = C × years + appreciation gain; ROI = profit / initial cash. Initial cash is down payment plus closing costs.
For a $300,000 purchase, $70,000 initial cash and $3,600 annual cash flow, five years at 3% appreciation give about $347,782 property value. Simplified profit is $18,000 cash flow plus $47,782 appreciation, or about $65,782, giving roughly 93.97% total ROI.
Content and calculation reviewed:
Understand the calculation
Compound growth multiplies the previous balance, including earlier interest, by the next period’s growth factor. The contribution term is another geometric sum: the first deposit compounds for longer than the last. It applies only to equal deposits and a constant rate; growing contributions require a different sum or period-by-period simulation.
FV = P(1+r)^n FV of end-period deposits = C × ((1+r)^n − 1)/r Beginning-period deposits multiply the deposit term by (1+r)
The detailed guide adds variable definitions, a reproducible example, a practice question and model limitations.