ROI Calculator
Gain:
Calculating return on investment (ROI) in a real estate
Use the ROI calculator to evaluate the effectiveness of your investment in housing. Find out how profitable it is to buy a property for sale or rent.
How the ROI calculator works
The Return on Investment (ROI) Calculator allows you to quickly estimate how profitable your real estate investment is. You simply need to enter the total amount you invested, the amount you expect to receive or have received (from rental income or property resale), and the number of years the investment is held. The calculator will show your total ROI as a percentage and also provide the annualized ROI — making it easy to compare different investment opportunities.
This tool is ideal for those considering overseas property as a long-term investment or short-term rental asset. It gives you clarity on whether your investment is generating real value, and helps avoid financial mistakes based on guesswork.
When is renting out a property more profitable?
Renting out property can provide a steady income stream, especially in locations with high tourist demand or housing shortages.
This strategy is often more profitable than selling when:
The local market has strong and consistent rental demand (e.g. university towns or tourist areas)
The property value is expected to rise in the long term, but not immediately
You want to create passive income and diversify your financial portfolio
You plan to live in or use the property later and don’t want to sell yet
However, managing a rental remotely can be challenging due to property maintenance, local tax regulations, and tenant management. Selling might be a better option if you need quick liquidity, the market is hot, or you want to reinvest elsewhere with better ROI.
Why use the ROI calculator?
Whether you’re an experienced investor or just starting out in international real estate, this ROI calculator helps you make smarter, data-driven decisions. It removes the guesswork from evaluating a property's financial potential and lets you quickly test different investment scenarios — such as higher rental income, longer durations, or different investment sizes.
Instead of relying on general market trends, you can see how your specific numbers perform. Use this calculator to compare multiple properties or decide whether to keep renting your asset or sell it. It's a must-have tool for anyone investing in overseas real estate.
Total ROI
Total ROI tells you the overall percentage return you've made on your investment. It's calculated by subtracting your original investment from the returned amount, dividing the result by the invested amount, and then multiplying by 100. A positive ROI means profit, while a negative ROI indicates a loss. This metric gives a full picture of how your money performed over time, whether you're selling or renting out a property.
Annualized ROI
Annualized ROI helps standardize the return across different investment periods by showing what your return would be on a yearly basis. This is especially useful when comparing a 2-year investment in Portugal, for example, with a 5-year investment in Poland. The annualized ROI is calculated using compound interest logic to reflect the average yearly performance.