Real Estate ROI Calculator — Net Investment, Rental Yield & Cash Flow Analysis
Input purchase price, loan, deposit, rent, interest rate, and holding period to instantly calculate net investment, annual rental yield (ROI), and monthly net cash flow. Includes AI-grade investment diagnosis.
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Frequently Asked Questions
Q. What is the difference between ROI and rental yield?
ROI measures net profit relative to your actual cash invested (after loans and deposits). Rental yield measures net rent relative to the full property price. Using leverage (loans) increases ROI.
Q. How is the net investment amount calculated?
Net investment = purchase price − loan amount − tenant deposit. Example: ₩500M property, ₩300M loan, ₩100M deposit → ₩100M net investment.
Q. Is negative monthly cash flow a problem?
Negative cash flow means rent income is less than interest payments. This is manageable if you expect capital gains, but unsustainable for long-term holds without price appreciation.
Q. What changes when I enter an expected sale price?
The tool adds capital gain (sale price − purchase price) to total rental income, calculating total returns and overall ROI including appreciation.
Q. Are acquisition tax and capital gains tax included?
This calculator excludes transaction taxes and fees. Use it alongside the Real Estate Tax Calculator for a complete picture.
Q. What is the average rental yield in Seoul?
Seoul apartments typically yield 3–4% rental yield. Regional cities or commercial properties can reach 5–7%.
How to Use
Input purchase price, loan amount, and tenant deposit (in ₩10,000 units).
Enter monthly rent, annual interest rate, and expected holding period.
Net investment, ROI, monthly cash flow, and AI investment grade are calculated instantly.
Enter expected sale price to calculate total returns including capital gains.
Expert Knowledge: Real Estate ROI Calculator — Net Investment, Rental Yield & Cash Flow Analysis
Real estate investment analysis relies on two key metrics. First, Net Rental Yield = (Annual Rent − Loan Interest − Expenses) / Purchase Price × 100%. Second, Cash-on-Cash ROI = Annual Net Cash Flow / Net Investment × 100%. Leverage dramatically amplifies COC ROI. Example: ₩500M property, ₩300M loan, ₩20M annual rent, ₩12M interest. Net Rental Yield = (20M−12M)/500M = 1.6%, but COC ROI = 8M/200M = 4%. This is why leverage is central to real estate returns. However, rising interest rates can quickly erode COC ROI — always model scenarios with higher rates before committing.
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