See your total return on a residential investment — combining rental income and capital appreciation against what you actually put in — plus your ROI and CAGR.
The Property & Loan
Income & Growth
Property value over the hold
Investment vs. total return
Total investment is down payment plus all EMIs paid during the holding period — the actual cash you put in. Total return is rental income received plus net sale proceeds (future property value minus the remaining loan balance at exit). ROI is profit ÷ total investment; CAGR annualizes that return over the holding period. This is an illustrative estimate, not financial or tax advice — it doesn't account for selling costs, property tax, or maintenance.
Real estate ROI is often reduced to "did the price go up," but for a financed, rented property, the real return comes from three things happening together: capital appreciation on the property value, rental income collected during the hold, and the effect of leverage — since you only put down a fraction of the price as cash, gains and losses are amplified relative to your actual investment.
This calculator measures ROI against your actual cash outlay (down payment plus every EMI paid), not the full property price — which is why a modestly appreciating rented property, bought with a home loan, can show a meaningfully higher ROI than the same property bought entirely in cash.
Total Investment = Down Payment + (EMI × Months Held)Future Property Value = Purchase Price × (1 + Appreciation %)^Holding YearsTotal Rental Income = Monthly Rent × 12 × Holding YearsNet Sale Proceeds = Future Property Value − Remaining Loan BalanceTotal Return = Total Rental Income + Net Sale ProceedsROI = (Total Return − Total Investment) ÷ Total InvestmentCAGR = (Total Return ÷ Total Investment)^(1 ÷ Holding Years) − 1
Because leverage means your total investment is only a fraction of the property's price, both ROI and CAGR here reflect a levered return — meaningfully different from (and often higher than) the property's raw appreciation rate.
A smaller down payment amplifies your ROI when the property appreciates, since your cash investment is smaller relative to the total gain — but it also amplifies downside risk.
Rental income directly adds to total return and, unlike appreciation, is realised throughout the hold rather than only at exit — a meaningful buffer if the market appreciates slower than expected.
A longer hold lets rental income and appreciation compound further, and dilutes the impact of upfront transaction costs — but ties up capital for longer.
It varies widely by leverage, rental yield, and holding period, but levered residential investments in growing Indore localities have often shown total ROI in the 50–150% range over 5–10 year holds, before tax and selling costs.
ROI is measured against your actual cash invested. A smaller down payment means less cash in, so the same rupee gain represents a larger percentage return — this is the effect of leverage.
No, this version focuses on purchase, financing, rental income, and appreciation. Ongoing property tax, maintenance, and selling costs would reduce actual net return and aren't included here.
ROI is your total percentage gain over the entire holding period. CAGR annualizes that same gain, making it easier to compare against other investments like mutual funds or fixed deposits on a like-for-like yearly basis.
Generally yes, but be realistic — overly optimistic appreciation assumptions overstate ROI. Cross-check your assumption against actual locality-level trends rather than a citywide average.
No. This tool provides an illustrative estimate based on the assumptions you enter. Speak with a floor.estate advisor for guidance specific to your investment.
Our investment advisory team can validate your rent and appreciation assumptions against real listings and locality trends.