Property Investment Score Calculator

Evaluate a property's investment potential based on rental yield, appreciation, ROI, CAGR, holding period and investment costs.

Investment Parameters

1. Property & Purchase Price

domain Property Price

₹

Base purchase price of the target property.

trending_up Expected Annual Appreciation

20%

Assumed annual property capital appreciation rate.

2. Rental Income & Operating Expenses

real_estate_agent Annual Rental Income

₹

Expected gross rental income generated in one year.

payments Annual Property Expenses

₹

Maintenance, property taxes, insurance, repairs & management fees.

3. Investment Horizon & Transaction Costs

hourglass_bottom Holding Period

Yrs

1 yr

30 yrs

Planned investment horizon before liquidating property.

shopping_cart Buying Costs (Stamp & Reg)

₹

Stamp duty, registration, legal fees & upfront brokerage.

sell Selling Costs (Brokerage & Fees)

₹

Exit brokerage, legal transfer costs & closing fees.

4. Financing & Debt Structuring (Optional)

account_balance Loan Amount (Optional)

₹

Leave ₹0 for unleveraged cash investment model.

Property Investment Score

STRONG

78 / 100

Modeled assumptions indicate a strong investment potential with healthy capital gain and positive unleveraged cash returns over 10 years.

WARNING:

Negative modeled return detected over selected holding period.

Future Property Value

₹ 1.79 Cr

Gain: ₹ 79.08 Lakh

Total Net Return

₹ 93.08 Lakh

Inv: ₹ 1.08 Cr

Net Rental Yield

2.40%

Gross: 3.00%

Unleveraged ROI

86.19%

CAGR: 6.41%

Investment Factor Breakdown (0=Low, 100=High)

1. Unleveraged ROI Score (30% weight) 86 / 100

2. Annualized Return CAGR (30% weight) 53 / 100

3. Net Rental Yield Score (20% weight) 48 / 100

4. Appreciation Rate Score (20% weight) 60 / 100

Investment Strengths & Risk Drivers

✓ Top Driver: Unleveraged ROI of 86.19% over 10 years.
✓ Capital Growth: Projected future value of ₹ 1.79 Cr (6.0% annual appreciation).
⚠️ Rental Cash Flow: Net rental yield (2.40%) is below 5.0% scoring benchmark.

tips_and_updates

Assumptions ≠ Promised Returns: Property appreciation rates, rental yields, and transaction costs are user-entered scenario assumptions. Real estate performance depends heavily on micro-location growth, holding period, inflation, and market liquidity.

Investment returns shown are estimates based entirely on the assumptions entered by the user. Property appreciation, rental income, expenses and selling costs are not guaranteed. Actual returns may differ materially. This calculator does not constitute investment advice or a recommendation to buy or sell property.

What Drives Real Estate Investment Returns?

A complete property investment analysis balances both ongoing cash flow (net rental yield) and long-term equity growth (capital appreciation), while factoring in mandatory buying and exit transaction costs.

Pillar 1

Net Rental Yield

Calculates real cash flow after deducting recurring maintenance, property taxes, insurance, and management fees from gross rent.

Pillar 2

Capital Appreciation & Compound Growth

Projects compound property appreciation over the selected holding horizon to model total equity gain upon exit.

Pillar 3

Friction & Transaction Costs

Factors in upfront stamp duty/registration fees (buying costs) and brokerage/closing fees (selling costs) to measure net ROI.

Pillar 4

CAGR & Annualized Return

Normalizes total net returns into an annualized compound rate of growth (CAGR) for easy comparison with alternative asset classes.

Frequently Asked Questions

How is the Property Investment Score calculated?

The Property Investment Score (0-100) evaluates 4 key return metrics: Unleveraged ROI (30%), CAGR (30%), Net Rental Yield (20%), and Capital Appreciation Rate (20%) normalized against market benchmarks.

Why does the calculator include buying and selling costs?

Stamp duty, registration, brokerage, and transaction costs reduce net real estate returns. Factoring buying and selling costs prevents inflated return estimates.

What do the Property Investment Ratings mean?

Scores of 80-100 indicate EXCELLENT potential, 65-79 indicate STRONG, 50-64 indicate MODERATE, and 0-49 indicate WEAK investment potential.

Is mortgage financing included in the base Investment Score?

The base Investment Score evaluates unleveraged cash returns. An optional financing panel allows buyers to inspect EMI and leverage cash-flow burdens separately.