Real Estate CalculatorFree online financial calculator — instant results, no sign-up

FV = P × (1 + r)^t
Profit = FV − P + (R × t)
Annualized Return = ((1 + Profit / P)^(1 / t) − 1) × 100

• FVFuture value of the property at the end of the holding period
• PPurchase price of the property
• rAnnual appreciation rate expressed as a decimal (Annual appreciation / 100)
• tHolding period in years
• RNet annual rental income
• ProfitTotal net financial gain from appreciation plus cumulative rent

The future property value is calculated using annual compound interest based on the initial price and appreciation rate. Total profit adds cumulative net rental income across the holding period to the capital gain (future value minus purchase price). The annualized return represents the compound annual growth rate (CAGR) based on total proceeds relative to the initial purchase price.

These are the calculator's starting values and the results it actually produces for them.

1. 1Multiply the purchase price by (1 + annual appreciation / 100) raised to the power of holding years to find the future property value.
2. 2Subtract the purchase price from the future property value to determine the capital appreciation gain.
3. 3Multiply the annual net rent by the number of holding years and add it to the capital appreciation gain to calculate total profit.
4. 4Divide total profit by the initial purchase price, add 1, take the t-th root (where t is years), subtract 1, and multiply by 100 for the annualized return percentage.

Further reading

• SEC Investor.gov - Compound Interest