ROI & IRR Calculator
ROI & IRR Calculator for Real Estate – Know Your Property Returns Before You Invest
Investing in real estate is one of the oldest and most trusted ways to build wealth in India. Unlike stocks or mutual funds, property gives you a tangible asset — something you can see, touch, and even live in. But while people often buy homes based on emotion, a smart investor knows one golden rule: always run the numbers first.
Using a home loan EMI calculator with prepayment option, you can estimate how early payments (like bonuses or savings) can help reduce this total repayment drastically.
That’s where the ROI (Return on Investment) and IRR (Internal Rate of Return) Calculator for real estate comes in. It’s a simple but powerful way to measure if a property is actually profitable. And with property prices in Bangalore rising, rental yields fluctuating, and taxes to consider, this tool gives you the clarity you need before writing that big cheque.
📌 Why ROI and IRR Matter for Real Estate
Buying a property is not just about living in it — it’s also about the money you make (or lose) from it. Investors want to know:
Will this flat give me steady rental returns?
If I sell in 5–10 years, how much profit will I make?
Is this investment better than keeping my money in mutual funds or stocks?
ROI gives you a simple percentage return every year. IRR goes deeper, showing your annualized return considering all cash inflows and outflows. Together, they paint the real financial picture of your investment.
How to Use the ROI Calculator for Real Estate Investments?
ROI (Return on Investment) is calculated as:
ROI=Annual Rental Income+Capital AppreciationTotal Investment×100ROI = \frac{\text{Annual Rental Income} + \text{Capital Appreciation}}{\text{Total Investment}} \times 100
ROI=Total InvestmentAnnual Rental Income+Capital Appreciation×100
For example:
Property Price = ₹60,00,000
Rent = ₹20,000/month (₹2.4 lakh/year)
Annual Rental Yield = 4%
After 7 years, property sells at ₹80,00,000
Total Rental Income = ₹16.8 lakh
Capital Appreciation = ₹20 lakh
Total Return = ₹36.8 lakh
ROI over 7 years = 61% (≈ 8.7% per year simple return)
👉 The ROI calculator is straightforward but doesn’t consider timing of cash flows (like irregular rent, maintenance, or selling at a certain year). such as rent fluctuations or selling the property at a particular time. That’s where the IRR calculator becomes useful.
📊 How the IRR Calculator Helps You Measure True Real Estate Returns?
IRR (Internal Rate of Return) is the discount rate that makes the Net Present Value (NPV) of all cash flows = 0.
Put simply, it answers: What is my annualized rate of return if I account for all money going in and coming out at different times?
Why IRR matters:
Considers when you pay (down payment, loan EMIs) and when you earn (rent, resale value).
Lets you compare property vs mutual funds, stocks, FDs on an equal footing.
Helps investors target a realistic benchmark (e.g., 10–15% IRR is considered solid in Indian real estate).
🏢 Example: IRR in a Bangalore Apartment Investment
Let’s consider a Bangalore apartment investment and use an IRR calculator to measure the return:
Purchase Price = ₹70,00,000
Down Payment = ₹20,00,000
Loan = ₹50,00,000 @ 9% (EMI ~₹45,000/month)
Rent = ₹25,000/month, 5% annual increase
Holding Period = 10 years
Selling Price = ₹1.1 crore
Cash Flows:
Year 0: -₹20 lakh (down payment)
Years 1–10: Rent inflows (~₹25k–₹38k/month) minus EMI outflows (~₹45k/month)
Year 10: Sale inflow = ₹1.1 crore
IRR Result: ~11–12% annualized return
That’s competitive with equities — but with more stability and a tangible asset.
💡 Factors Affecting ROI & IRR
Rental Yield
Higher rent improves returns. In Bangalore, yields average 3–5%.
Property Appreciation
Location and market cycle determine resale value.
Loan Terms
Interest rate and EMI affect cash flows.
Holding Period
Longer holding usually smooths returns but can tie up capital.
Maintenance & Taxes
Property tax, repairs, society charges eat into returns.
Vacancy Periods
Empty months reduce effective ROI.
🔍 The Limitations of Traditional Real Estate Investment
Even if ROI/IRR look good on paper, investors face:
Purchase Price = ₹70,00,000
Down Payment = ₹20,00,000
Loan = ₹50,00,000 @ 9% (EMI ~₹45,000/month)
Rent = ₹25,000/month, 5% annual increase
Holding Period = 10 years
Selling Price = ₹1.1 crore
This is why many retail investors stick to mutual funds, despite preferring property.
✅ How Owne Helps Investors Maximize ROI and IRR in Real Estate
Owne bridges this gap by making property investment:
Accessible → Co-invest with buyers, instead of full property purchase.
Efficient → Earn IRR-linked returns through structured deals.
Tax-smart → Benefit from capital gains and rental yields without NBFC-style complexity.
Flexible → Investors aren’t stuck with full down payments; they share exposure and returns.
In short: Owne lets investors participate in real estate’s wealth-building, while solving liquidity and entry barriers.
📉 ROI vs IRR vs Owne
Measure
Traditional Property Purchase
Owne Co-Investment
ROI
₹1.15 crore
None
IRR
₹1.29 crore (₹69L interest)
Flat worth ₹1.5–1.8Cr
Capital Requirement
₹20–40 lakh upfront
Lower ticket sizes
Liquidity
Low
Higher (structured exits)
✅ Conclusion
Before investing in property, always calculate your ROI and IRR. These numbers reveal if the deal is truly worth your time, effort, and money.
In Bangalore, where property values rise steadily but rental yields are modest, running the numbers is crucial. A property that looks attractive at first may have a weak IRR once EMIs and expenses are factored in.
That’s why Owne exists — to give investors a smarter way to earn property-linked returns, without the traditional headaches of loans, huge down payments, or illiquidity.
👉 Try our ROI & IRR calculator online today and see how Owne can help you co-invest in real estate with attractive, tax-efficient returns.