What strategy do you want to analyze?
Runs all three strategies simultaneously and compares modeled annualized ROI under the same property assumptions.
Property & Purchase
Rental Income & Expenses
Fix & Flip Details
BRRRR Refinance Details
Saved Scenarios
Compare different investment scenarios side by side
No saved scenarios yet
Fill in the calculator and click "Save Scenario" to save your analysis
4 Strategy Modes
Rental, Flip, BRRRR, Strategy Comparison — pick your investment approach
ROI Screening Tiers
Modeled ROI tiers that help organize results. Not buy/reject recommendations
Risk Score 0–10
Model-based screening signal using leverage, margin, sensitivity, and hold-period assumptions
IRR + Capital Payback
Estimated time-value and payback outputs based on user-entered assumptions
Overview
This Real Estate ROI Calculator compares investment scenarios across rental property, fix-and-flip, BRRRR, and strategy comparison modes. It is designed to help organize assumptions about purchase price, financing, rehab, rent, expenses, appreciation, sale costs, tax assumptions, refinancing, and exit timing.
The calculator can estimate total ROI, annualized ROI, IRR, equity multiple, capital payback, cash flow, sale proceeds, risk score, confidence score, stability tier, and a modeled strategy comparison.
ROI analysis should not be treated as a single-number decision. Real estate returns depend on rent, vacancy, operating expenses, financing, taxes, appreciation, rehab execution, sale timing, refinance terms, property condition, and market conditions.
Use this calculator as a screening and comparison tool. For final decisions, verify inputs with rent comps, contractor bids, lender quotes, tax guidance, appraisal support, market data, and property-specific due diligence.
What Is Real Estate ROI?
Real estate ROI compares the profit or return from a property investment with the capital invested. Depending on the strategy, ROI may include cash flow, sale proceeds, appreciation, equity paydown, refinance outcomes, and selected tax assumptions.
A simple ROI formula is: ROI = Total Profit ÷ Total Capital Invested × 100
However, real estate ROI can be calculated in different ways depending on the strategy and time period. Rental ROI is different from flip ROI, and BRRRR returns can be distorted when very little capital remains in the deal after refinance.
This calculator provides modeled ROI estimates from user-entered assumptions. It should not be treated as a guarantee of return, exact tax model, appraisal, lender result, or investment recommendation.
How to Use This Real Estate ROI Calculator
- 1
Choose strategy mode
Choose Rental Property, Fix & Flip, BRRRR, or Strategy Comparison. Strategy Comparison runs multiple models using the same property assumptions, but it should not be treated as an automatic strategy recommendation.
- 2
Enter purchase and financing assumptions
Enter purchase price, down payment, mortgage rate, loan term, rehab budget, closing costs, and other acquisition assumptions. Replace defaults with actual lender quotes, purchase terms, and contractor estimates where available.
- 3
Enter income, expense, and hold assumptions
For rentals, enter rent, vacancy, operating expenses, taxes, insurance, HOA, appreciation, selling costs, and hold period. For flips, enter ARV, hold period, hard money terms. For BRRRR, enter refinance assumptions and post-refi rent.
Review ROI, IRR, payback, risk, and stability
Review total ROI, annualized ROI, IRR, equity multiple, capital payback, risk score, confidence score, stability tier, and strategy comparison. Treat these as screening outputs, not investment instructions.
Save and compare scenarios
Use Saved Scenarios to compare assumptions side by side. Before relying on a scenario, verify the inputs and run conservative sensitivity checks.
How to Read ROI, IRR, Risk Score and Strategy Winner
The calculator may display ROI tiers, risk score, stability, confidence, and strategy comparison. These outputs are screening signals only. They are not investment recommendations, financial advice, lender decisions, or guarantees of performance.
ROI Screening Tiers
Risk Score
Risk Score is a model-based screening signal from 0 to 10. It estimates sensitivity across selected dimensions such as leverage, margin, rent sensitivity, appreciation dependency, and hold period.
It does not measure every real-world risk. It does not account for all legal, tax, construction, liquidity, market, tenant, insurance, zoning, lender, or execution risks.
Use Risk Score as a prompt for deeper review, not as a final risk rating.
Real Estate ROI Formula / Methodology
Basic ROI
ROI = Total Profit ÷ Total Capital Invested × 100
Annualized ROI
Annualized ROI = [(1 + Total ROI)^(1 ÷ Hold Years) − 1] × 100
IRR
Discount rate where NPV of [−Invested, CF₁, CF₂, ..., CFₙ + Sale] = 0
Capital Payback
Years for cumulative cash flow to recover initial capital invested
Flip ROI
Net Flip Profit = Net Sale Proceeds − Purchase − Rehab − Financing − Holding − Closing
Flip ROI = Net Flip Profit ÷ Cash Invested × 100
BRRRR Capital Recovery
Capital Remaining = Total Cash In − (Refi Proceeds − Refi Closing Costs)
If Capital Remaining ≤ 0 → modeled infinite ROI condition
Worked Example — Rental ROI Scenario
Inputs
Selected Outputs
Interpretation: This example shows how rent, vacancy, expenses, debt service, appreciation, and selling costs affect modeled ROI. The result is a scenario demonstration only. It does not guarantee rent, appreciation, sale price, tax treatment, financing, or return.
Strategy Comparison Mode
Strategy Comparison runs rental, fix-and-flip, and BRRRR scenarios using the same property assumptions where applicable. The "Strategy Winner" is the highest modeled output under the calculator's selected methodology.
This output is not a recommendation. Strategy choice also depends on investor capital, time, skill, taxes, liquidity needs, financing access, construction risk, tenant risk, market timing, and personal risk tolerance.
Useful for modeling longer-term rental income, cash flow, equity buildup, appreciation, and sale proceeds.
Useful for modeling a shorter-term resale strategy based on ARV, rehab, financing, holding costs, and selling costs.
Useful for modeling acquisition, rehab, refinance, capital recovery, and post-refi hold assumptions.
The Strategy Winner is a modeled comparison result under selected assumptions. It does not mean the strategy is objectively best or suitable for the investor.
Stability and Confidence Score
Stability
Stability compares conservative, base, and optimistic scenario outputs. If outputs are similar, the model is less sensitive to the tested assumptions. If outputs diverge, the scenario depends more heavily on assumptions.
Confidence Score
Confidence Score estimates input completeness and sensitivity. It does not verify that inputs are accurate.
Confidence Score is not proof that the deal is good. It only indicates that the model has more or less input support.
Methodology & Assumptions
The outputs on this page are screening estimates, not guaranteed returns, tax advice, legal advice, lender approvals, appraisals, sale forecasts, refinance approvals, or investment recommendations.
Base assumptions
- Purchase price, rehab, rent, expenses, rates, appreciation, and sale assumptions are user-entered
- Rental ROI may include cash flow, equity paydown, appreciation, sale proceeds, and selected simplified tax assumptions
- Flip ROI is based on modeled resale proceeds, rehab, financing, holding, and sale costs
- BRRRR ROI is based on acquisition, rehab, refinance, capital recovery, and post-refi hold assumptions
- IRR depends on modeled cash-flow timing and exit assumptions
- Capital payback depends on cumulative cash flow and the model's selected payback definition
- Risk score is a model-based screening signal, not a complete risk assessment
- Strategy winner is a modeled comparison result, not a recommendation
- Taxes, depreciation, recapture, passive activity limits, entity structure, and state taxes are not fully modeled
Users should replace defaults with verified rent comps, tax records, insurance quotes, contractor bids, lender quotes, appraisal support, sales comps, lease data, and tax-professional guidance where needed.
Financing Assumption Context
Default financing assumptions are planning inputs only. They are not rate quotes, lender requirements, or market predictions.
Actual rates, down payments, points, LTV, DSCR requirements, reserves, and documentation rules vary by lender, loan product, property type, borrower profile, credit, leverage, market, and current credit conditions.
Users should replace defaults with current lender quotes, term sheets, and loan estimates before relying on the result.
Common Mistakes When Calculating Real Estate ROI
All calculations are for informational and educational purposes only. ArvCalc does not provide financial, tax, legal, or investment advice. Results are screening estimates based on user-entered assumptions. Consult qualified professionals before making real estate investment decisions. Real estate investing involves risk including potential loss of principal.