How This Calculator Works
This calculator helps investors evaluate the return on a real estate investment based on unit-based rental income and maintenance expenses. It estimates how many years it will take to recover your investment and computes your annual ROI.
Formula Explanation
- Net Annual Income: (Total Units × Monthly Rent × 12) − Yearly Maintenance Fee
- Years to Return Investment: Total Investment ÷ Net Annual Income
- ROI (% per Year): (Net Annual Income ÷ Total Investment) × 100
Example Calculation
If you own 10 units, each rented at ₹20,000/month (entered as 20), your annual rent is ₹24,00,000. If yearly maintenance is ₹1,00,000 and total investment is ₹1.2 crore (entered as 1200), your net annual income is ₹23,00,000. ROI = (23,00,000 ÷ 1,20,00,000) × 100 = 19.17%. Time to recover = 1,20,00,000 ÷ 23,00,000 = ~5.22 years.