Purchase Price
The agreed-upon price to acquire the property.
Down Payment
The upfront payment toward the purchase price, expressed as a dollar amount.
Investment Period
The expected number of years you plan to hold the property before selling.
Annual Appreciation
The estimated annual growth rate of the property’s market value.
Mortgage Rate
The interest rate applied to your mortgage loan.
Amortization Period
The total length of time (in years) over which your mortgage is scheduled to be paid off.
Closing Costs
Estimated fees and expenses associated with purchasing the property, automatically calculated at 2.95% of the purchase price.
Selling Fees
Estimated transaction costs related to selling the property, including real estate commissions and closing costs, entered as a percentage of the final sale price.
Monthly Rental Income
The total expected gross rent collected from all units combined.
Monthly Expenses
The combined total of all recurring property expenses, such as property taxes, insurance, utilities, and maintenance (excluding mortgage payments).
Mortgage Payment
The monthly principal and interest payment on your mortgage loan.
Monthly Cash Flow
The net amount you earn each month after deducting mortgage payments and operating expenses from your rental income.
Total Cash Flow
The cumulative net cash flow earned over the investment period.
Equity Gain
The combined value of principal paydown (from mortgage payments) and property appreciation during the investment period.
Net Return
The final profit realized after accounting for all cash flow, equity gains, closing costs, and selling expenses.
Annual ROI (Return on Investment)
The average annual percentage return based on your total initial investment over the investment period.
Total ROI
The total percentage return earned over the entire investment period relative to your original investment.
Cap Rate (On Cost)
A property’s annual net operating income divided by its original purchase price, expressed as a percentage.
Closing Costs are calculated as 2.95% of the Purchase Price to estimate legal fees, inspection costs, title insurance, and other common purchase-related expenses.
Selling Fees are manually entered and typically include real estate agent commissions and applicable transaction closing costs.
Rental Income assumes consistent tenancy throughout the investment period (i.e., no major vacancies).
Expense Estimates are based on user input and assume steady property management and maintenance practices over the investment period.
Mortgage Payments are based on the interest rate and amortization period entered by the user and do not include prepayment penalties or refinancing activities.
Property Appreciation is applied annually and compounded each year over the investment period.
Tax Implications are not factored into this calculator. All results are pre-tax estimates.
Disclaimer
This ROI Calculator is intended for informational purposes only. Actual results may vary based on market conditions, rental vacancies, expense fluctuations, financing changes, and other factors. We encourage all investors to seek independent financial advice before making investment decisions.
9366 49st NW #204, Edmonton, AB, T6B 2L7