Finance & Investment · Real Estate
Real Estate Investment Return Calculator
Work out what a property investment really returns on your own money: buying costs, a home loan, rent net of vacancy and upkeep, appreciation and selling costs, turned into an IRR you can compare with other investments — with year-by-year cash flows.
Your inputs
Quick start — try a typical case
₹ 80 lakh
Typically 5–8 % in India depending on the state.
₹ 3 lakh
Brokerage, interiors, legal fees.
100 % means no loan.
₹ 25 thousand
₹ 36 thousand
Society maintenance, property tax, repairs, insurance.
Your result Live
Return on Your Money (IRR)
4.35% a year
₹21,72,163 net profit over 10 years on ₹24,60,000 upfront plus EMIs
- vs 10.0% Elsewhere
- Property behind by ₹15,80,655 in today's money
- Money Multiple
- 1.37× (₹58,23,045 in → ₹79,95,208 out)
- Sale Price
- ₹1,30,31,157 → ₹82,90,929 to you after costs and loan
- Gross / Net Rental Yield
- 3.75% / 2.70%
- Monthly EMI
- ₹55,541 on a ₹64,00,000 loan
- Year-1 Monthly Cash Flow
- -₹35,624 (you top up)
Year by year
10 rowsIncome tax on rent (with the 30 % standard deduction and interest deduction), capital-gains tax on the sale and any tax benefit on the loan aren't included.
A loan magnifies the return both ways: if prices grow slower than the loan rate, leverage makes the result worse.
An estimate from the assumptions you entered, not a guaranteed outcome.
How this is calculated
Year 0: −(down payment + buying costs); each year: rent × (12 − empty months) − upkeep − EMIs; final year: + sale × (1 − selling costs) − loan left; IRR: NPV = 0
- IRR
- The yearly return that makes the present value of all your cash flows zero
- Money multiple
- Everything you get back ÷ everything you put in
A property's headline appreciation overstates its return: stamp duty, upkeep, empty months, EMI interest and selling costs all come out of it, while rent adds to it. This calculator follows the cash from your pocket — the down payment and costs going in, net rent and the sale proceeds coming back — and summarises it as an IRR, the same measure you'd use for any other investment.
Assumptions & sources
- Rent and upkeep rise at the same yearly rate; the loan is a standard monthly-reducing EMI loan.
- Cash flows are yearly, with the sale at the end of the final year.
- Taxes are not included.
- 1CFA Program Curriculum — Quantitative Methods: The Time Value of Money — CFA Institute
- 2Investments (Bodie, Kane & Marcus), chapters on returns, compounding and the time value of money — McGraw-Hill
- 3Residex — housing price index — National Housing Bank
Calculator ID FIN-RE-RETURN-001 · version 1.0.0
Common questions
What is a good return on property in India?
Rental yields on homes are often only 2–4 %, so most of the return has to come from price growth. Compare the IRR here with what a diversified investment of similar risk would earn.
Does a home loan improve the return?
It can: you put in less of your own money, so price growth is magnified. But if the property grows slower than the loan rate, the loan reduces the return.