Property ROI Calculator

Frequently asked questions

What is a good return on investment result for rental property?

A cash-on-cash ROI of 6% to 10% annually is generally considered a solid result for leveraged residential investment property. Asset ROI, which measures net profit against the full purchase price rather than cash invested, will typically be lower but gives a clearer picture of the property's efficiency as an asset. Returns above 10% cash-on-cash are achievable in high-yield markets but often come with higher vacancy or maintenance risk.

How accurate is this property ROI calculator?

The calculator applies standard cash-on-cash and asset ROI formulas used across the investment property industry. Real-world accuracy depends on how closely your actual income and expenses match the figures entered. Variables like unexpected maintenance, partial-year vacancies, or variable interest rates can cause actual returns to differ from the estimate.

What does a negative return on investment mean?

A negative ROI means your total costs, including mortgage EMI and operating expenses, exceed your rental income, resulting in a net loss for the year. This does not necessarily mean the investment is a bad one, as capital appreciation may offset the cash shortfall, but it does mean the property is consuming cash each year. Review whether rent is below market rate or whether expenses can be reduced.

How can I improve my return on investment?

The most direct levers are increasing rental income to market rates, reducing operating expenses such as management fees or service charges, and ensuring full occupancy by minimizing vacancy periods between tenancies. For mortgaged properties, refinancing to a lower interest rate can meaningfully improve cash-on-cash ROI by reducing the annual EMI burden. IONROI tracks all these variables so you can see exactly where returns are being compressed.