Calculate return on investment for residential or commercial property
Net profit
₹47,49,984
Forty Seven Lakh Forty Nine Thousand Nine Hundred Eighty Four Rupees
Future property value
₹1,07,94,625
Total cost of acquisition
₹55,50,000
Total ROI
85.59%
CAGR
6.88%
property value vs total cost; excludes rent
Rental yield
4.8%p.a.
Total rental income
₹24,00,000
| Component | Amount |
|---|---|
| Purchase price | ₹50,00,000 |
| Registration & stamp duty (7%) | ₹3,50,000 |
| Renovation cost | ₹2,00,000 |
| Total acquisition cost | ₹55,50,000 |
| Future property value | ₹1,07,94,625 |
| Total rental income | ₹24,00,000 |
| Total maintenance cost | -₹3,00,000 |
| Loan interest (during holding) | -₹25,94,641 |
| Monthly EMI (per month) | ₹30,374 |
| Net profit | ₹47,49,984 |
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Results are estimates, not financial advice. Rates, charges and rules change, so confirm with your bank, post office or a financial adviser before you decide. Terms of use
How to Use
- Enter the Purchase price and the Registration & stamp duty percentage (usually 5–8%, depending on the state).
- Enter any Renovation cost and the Annual maintenance cost.
- Enter the Monthly rental income if the property is let out. Put 0 if you live in it.
- Set the Expected appreciation rate and the Holding period. If you've taken a loan, enter the Loan amount, rate and tenure, and the interest you pay while you hold the property is counted as a cost. Enter 0 if there's no loan.
- Net profit, total ROI, CAGR, rental yield and the cost breakdown update as you type. Save them with pdf or CSV/Excel.
What a property really earns you
Property returns come from two places: capital appreciation (the rise in the property's value) and rental income. Most buyers look only at appreciation and forget the full cost of owning: stamp duty, registration, maintenance, loan interest and property tax. This real estate ROI calculator puts all of it together, so you see the actual return on the flat or plot.
The full cost of owning
| Cost Component | Typical Range |
|---|---|
| Stamp Duty | 3–7% of property value (varies by state) |
| Registration Fee | 1% of property value |
| GST (under-construction) | 1–5% (affordable vs regular) |
| Brokerage | 1–2% (buyer's side) |
| Interior/Renovation | ₹500–2,000 per sq ft |
| Society Maintenance | ₹2–10 per sq ft per month |
Rental yield in Indian cities
| City | Gross Rental Yield |
|---|---|
| Mumbai (premium) | 2–3% |
| Bengaluru / Hyderabad | 3–4% |
| Pune / Chennai | 3–4% |
| Delhi NCR | 2.5–3.5% |
| Tier-2 cities | 4–6% |
Property vs mutual funds over the long term
- Indian property has gone up by about 7–10% a year (CAGR) over 10 years in most cities.
- A Nifty 50 SIP over the same period has returned about 12–14% CAGR.
- Still, property gives you something you can touch, a rent cheque, and a sense of security that shares can't.
- After all costs, the net return on property is often 4–7% a year. Compare the two honestly before you decide.
Frequently Asked Questions
About 7–10% CAGR, net of stamp duty, registration, maintenance and loan interest, is considered good for a home. Big metros like Mumbai and Delhi often return less (5–8%) because prices are high compared with rents and growth. Fast-growing cities and suburbs (Pune, Hyderabad, outer Bengaluru) often give 8–12%. Commercial property can earn a 7–10% rental yield but needs more money upfront. Compare any figure with a Nifty 50 SIP (12–14% CAGR) to see what you're giving up.
Buying to live in usually makes more sense. It works if you plan to stay 7 years or more (long enough for appreciation to cover the buying costs), have a 20–30% down payment ready, and the EMI is under 35% of your take-home pay. As a pure investment, equity mutual funds often win on both returns and liquidity. Property works better as one part of your portfolio (5–15% of your net worth) than as the main investment.
It's a state tax on property purchases, usually 3–7% of the property value. Rates differ a lot by state: Delhi charges 6% for men, 4% for women and 5% for joint owners; Maharashtra 5–7% depending on the city, with 1% off for women buyers; Karnataka about 5% and UP 7%. Registration adds about 1% in most states (Maharashtra caps it at ₹30,000). You pay these upfront and never get them back, which is a big reason why buying and selling property quickly rarely makes money.
Yes. For a let-out (rented) property, the whole home loan interest can be deducted from the rent under Section 24(b), with no ₹2 lakh cap (a self-occupied home is capped at ₹2 lakh). Principal repayment can be claimed under 80C, within the ₹1.5 lakh limit. If this leaves you with a loss on the property, up to ₹2 lakh a year can be set off against your other income, and the rest carried forward for 8 years.