Real Estate ROI Calculator
Run the numbers on any investment property to see whether the projected returns justify the purchase.
What This Calculator Does
Plug in purchase price, expected rental income, operating expenses, and your planned holding period and this calculator works out your overall ROI — giving you a concrete figure to compare against other opportunities.
Who Is This For
Investors shopping for Miami properties, existing landlords who want a sharper read on their portfolio's performance, and anyone weighing whether to add a rental property to their South Florida holdings.
How It Works
Input the property's purchase price, the monthly rent you realistically expect to collect, your projected annual expenses, and how long you plan to hold the asset. The calculator will return your projected ROI and estimated cash flow.
Frequently Asked Questions
What is a good ROI for rental property?
What qualifies as good depends on the market and your appetite for risk. In Miami, an annual ROI of 6-10% is broadly regarded as a solid result for rental properties, and stronger returns are achievable in up-and-coming neighborhoods.
What expenses should I include?
Build in property taxes, insurance, a maintenance reserve of around 1% of property value, property management fees of 8-10%, a vacancy allowance of 5-8%, and HOA fees where they apply.
How do I account for appreciation?
Miami real estate has historically gained 3-5% in value per year, which can meaningfully boost your total return. Factor it into your projections, while keeping in mind that appreciation is never guaranteed.
Should I consider leverage?
Financing with a mortgage can magnify returns through leverage, but it simultaneously raises risk and tightens monthly cash flow. Model out both a leveraged and an all-cash scenario before deciding.