Calculate return on investment for Rental, Buy-to-Let (BTL), and Airbnb properties
ROI (Return on Investment) measures the profitability of an investment. It's calculated as (Net Annual Income / Cash Invested) × 100. This calculator uses cash-on-cash return, which shows the return on your actual cash investment (down payment) rather than the total property value.
ROI (cash-on-cash return) considers your actual cash investment and mortgage payments, showing your real return. Cap Rate is calculated as (Net Operating Income / Property Value) × 100 and doesn't account for financing - it shows the property's unleveraged return.
Include all property-related costs: property management fees, maintenance and repairs, insurance, property taxes, void periods, legal fees, and any other recurring costs. Don't include mortgage payments as they're calculated separately.
Occupancy rate is crucial for Airbnb properties. A 70% occupancy rate means the property is rented 70% of the time. Lower occupancy significantly impacts annual rental income and ROI. This calculator adjusts monthly rent based on your occupancy rate percentage.
This calculator provides estimates based on standard calculations. Actual returns may vary based on local market conditions, property condition, management efficiency, and unexpected expenses. Always consult with property professionals for accurate assessments.