How do you use the property ROI calculator?
- Enter the purchase price and the monthly rent you expect.
- Set how long you will hold the property and the yearly price growth you want to test.
- Set the down payment. RBI loan limits are applied for you.
- Open “Adjust rates, loan and costs” to change the down payment (25%), interest rate (8.5% by default), tenure (20 years), rent rise, selling costs, yearly owner costs, and the stamp duty, cess, surcharge and registration rates (7.6% in all, verified 18 Oct 2026).
- Read the annual return first, then the table to see where it comes from.
How is property investment ROI calculated?
The calculator follows every rupee. You pay the down payment and stamp duty on day one. Each month you receive rent and pay the EMI and any owner costs; if the EMI is higher, you top up the gap. At the end you sell, pay any selling costs and clear the loan.
Formula used by the calculator
Profit = Rent received + Sale value − Selling costs − Loan left − Down payment − Stamp duty & registration − EMIs paid − Owner costsROI % = Profit ÷ (Down payment + Stamp duty & registration + Monthly top-ups) × 100The yearly rate at which all the monthly cash flows, in and out, add up to zeroIRR is the figure to compare with a fixed deposit or a fund, because it accounts for when each rupee goes in and comes out. Total ROI ignores timing, so it always looks bigger over long holding periods.
Worked example: ₹ 1.00 Cr flat let at ₹ 30,000 a month, held 10 years
The bank lends 75% (₹ 75,00,000), so you pay ₹ 25,00,000 down plus ₹ 7,60,000 stamp duty and registration. The EMI at 8.5% for 20 years is ₹ 65,087, so in the first month you top up ₹ 35,087. Over 10 years, with rent rising 5% a year, you receive ₹ 45,28,041 in rent and pay ₹ 78,10,409 in EMIs, of which ₹ 55,59,946 is interest. Your top-ups total ₹ 32,82,368.
At 6% yearly growth you sell for ₹ 1,79,08,477 and repay the ₹ 52,49,537 still owed. Net profit is ₹ 61,16,572 on ₹ 65,42,368 of your own cash: a total ROI of 93.5% and an annual return (IRR) of 8.51%. Bought without a loan, the same flat returns 8.67% a year.
How do price growth and holding period change the return?
| Price growth | Held 5 years | Held 10 years | Held 15 years |
|---|---|---|---|
| 0% a year | -10.10% | -4.15% | Not defined |
| 3% a year | -0.92% | 2.89% | Not defined |
| 6% a year | 6.67% | 8.51% | Not defined |
| 9% a year | 13.33% | 13.39% | Not defined |
What does the result mean?
Compare the IRR with what the same cash would earn elsewhere, at a similar level of risk. A property is harder to sell quickly than a deposit or a fund, and its return depends heavily on the price growth you assumed, so many investors look for a margin above safer options.
Watch the monthly top-up too. If rent covers only part of the EMI, you need spare income every month for years. The rental yield calculator and the property appreciation calculator help you test the two biggest inputs.
Which buying costs apply in Bengaluru?
On a sale deed in Bengaluru, Karnataka charges 5% stamp duty on the market value (Karnataka Stamp Act, Schedule Art. 20(1)), a 10% cess on the duty (s.3B) and, inside the Greater Bengaluru Area, a 2% surcharge on the duty (Greater Bengaluru Governance Act 2024, s.170). The registration fee is 2% (IGR notification of 29 Aug 2025, in force from 31 Aug 2025). Together that is 7.6% of the value. The first sale of a flat pays less duty: 2% up to ₹ 20 L and 3% above ₹ 20 L up to ₹ 45 L, so the total is 4.24% or 5.36%. Resale flats, plots and houses pay 5% at any price. Rates verified 18 Oct 2026 · confirm on Kaveri Online before registering. An under-construction purchase also carries GST of 5% (1% for affordable homes, per the CBIC real estate FAQ); add it to the buying cost percentage if it applies. Buying at ₹ 50 L or more, you deduct 1% TDS from the seller’s payment; it is not an extra cost.
RBI rules cap the home loan at 90% of the value for loans up to ₹ 30 L, 80% for loans above ₹ 30 L and up to ₹ 75 L, and 75% above ₹ 75 L.
What does this calculator leave out?
- Income tax on rent and on capital gains when you sell, and any tax deductions on the loan. Ask your CA.
- Vacant months between tenants, unless you lower the rent to allow for them.
- Maintenance, property tax, repairs and brokerage, unless you enter them as owner or selling costs.
- Changes in the loan rate, and prepayments.
Frequently asked questions
Related answers and guides
- Pre-Launch EOI Risk: Real Estate Investment Consultant View
- Builder Track Record: Real Estate Investment Consultant
- Commercial vs Residential Property Investment: What Changes
- Rental Yield in Bengaluru by Area: 2026 Investor Data
Sources
- Stamp duty 5% (Schedule Art. 20(1)), first-sale flat slabs (Art. 20(2A)) and 10% cess (s.3B): Karnataka Stamp Act 1957, consolidated copy (DPAL); ₹ 35–45 L slab: Karnataka Stamp (Amendment) Act 2021.
- 2% surcharge on duty in the Greater Bengaluru Area: Greater Bengaluru Governance Act 2024, s.170.
- Registration fee 2%: IGR Karnataka, Table of Registration Fees (Notification RD/46/MNMU/2025) and IGR press note, 29 Aug 2025.
- Rates verified 18 Oct 2026 · confirm on Kaveri Online before registering.
- GST 5% / 1%: CBIC real estate FAQ. TDS 1%: Income Tax Department, section 393.
- Loan-to-value limits: Reserve Bank of India housing loan norms.
Results are indicative and depend on the assumptions you enter; they are not a forecast of prices, rents or returns. Indicative only. Please verify with your Chartered Accountant before acting.
Want to test a specific property? Talk to an acre&key advisor.