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Q » How do I calculate return on investment for a rental property?

Matthew

29 Oct, 2025

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A » To calculate the return on investment (ROI) for a rental property, first determine your annual rental income and subtract annual expenses (maintenance, taxes, etc.). Then, divide this net income by the total investment cost (purchase price plus any renovation costs). Multiply the result by 100 to express it as a percentage. This percentage represents your ROI, helping you gauge the property's profitability.

Michael

30 Oct, 2025

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A »To calculate return on investment (ROI) for a rental property, divide the annual rental income by the total investment (purchase price + costs). For example, if you buy a $200,000 property with $50,000 down and $15,000 in costs, and earn $20,000 in annual rent, your ROI is $20,000 / ($50,000 + $15,000) = 30.8%.

David

30 Oct, 2025

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