Most of use view real estate as an investment. Whether it is purchased as a residence, a rental, a “fixer upper”. or simply as a “hold and sell” investment, one of the benefits of real estate is that it is generally expected to appreciate over time.
When viewed as an investment, the expected returns associated with buying real estate can be compared with other alternative investment opportunities. Typically, your Return on Investment, or ROI, is a measurement that is used for this comparison.
VisualCalc’s Real Estate ROI Calculator enables you to calculate the projected ROI on a real estate purchase. You can input the purchase price and down payment percentage, and then estimate the number of years you will keep the property before selling it, and either the annualized purchase price appreciation you expect to earn while holding the property, or the price you expect to sell it for. The calculator then shows you the ROI you would realize based on these projections. This ROI is show in both dollar and percentage terms.
