How do you use the ROI comparison calculator?
- For each property, enter the price, the value you expect to sell at, how many years you will hold it, and the rent it earns a year after maintenance and other owner costs.
- Under “Adjust rates and selling cost”, pick new flats or resale for stamp duty, set the selling cost and change the government rates if needed.
- Read which property earns more a year, and compare total profit and ROI in the table.
Why compare properties by yearly return, not total ROI?
Total ROI is the profit as a share of what you paid. It ignores time: 40% over 5 years is a better result than 43% over 6 years. It also ignores when the money comes in, since rent arrives every year while the sale comes at the end. The yearly return, or IRR, counts both, so properties with different prices and holding periods can be compared fairly.
The calculator adds Bengaluru stamp duty and registration to each price, takes the selling cost off each sale, and finds the yearly rate that balances what you put in with what you get back.
How the comparison is worked out
Price + stamp duty + cess + surcharge + registrationNet rent each year + sale value × (1 − selling cost) at the end(Back − cost) ÷ costIRR: the rate at which cost = all money back, discounted year by yearWorked example: a ₹ 80 lakh flat against a ₹ 1.2 crore flat
Property A costs ₹ 86,08,000 with stamp duty and registration, earns ₹ 2.4 lakh net rent a year and sells for ₹ 1.1 crore after 5 years: a profit of ₹ 33,72,000, a total ROI of 39.17% and 7.16% a year. Property B costs ₹ 1,29,12,000, earns ₹ 3 lakh a year and sells for ₹ 1.7 crore after 6 years: a bigger profit of ₹ 55,48,000 and a higher ROI of 42.97%, but only 6.44% a year. A puts your money to work faster.
Worked example: when a property loses money
If A sold for only ₹ 70 lakh with no rent, it would return −4.44% a year, a loss of ₹ 17,48,000.
Property A at different sale values
| Sale value | Total profit | Total ROI | Yearly return |
|---|---|---|---|
| ₹ 90,00,000 | ₹ 14,12,000 | 16.40% | 3.25% |
| ₹ 1,00,00,000 | ₹ 23,92,000 | 27.79% | 5.28% |
| ₹ 1,10,00,000 | ₹ 33,72,000 | 39.17% | 7.16% |
| ₹ 1,20,00,000 | ₹ 43,52,000 | 50.56% | 8.92% |
What should you keep in mind?
- Sale values and rents are your assumptions. Base them on actual recent sales and rents nearby.
- Figures are before tax and without a loan. A loan changes the return on your own cash; the cash-on-cash return calculator shows the year-one picture with an EMI.
- Gains on sale are taxed. Check with your Chartered Accountant, and have a property lawyer check the title before you buy.
Frequently asked questions
Related answers and guides
- Pre-Launch EOI Risk: Real Estate Investment Consultant View
- Assess Builder Track Record: Bengaluru Diligence Guide
- Commercial vs Residential Property Investment: What Changes
- Cheap vs Expensive Homes: When Each Is a Bad Investment
Sources
- Karnataka Stamp Act, 1957 and Revenue Department notification RD/46/MNMU/2025 (registration fee 2% from 31 August 2025). Rates verified 18 Oct 2026.
- Standard IRR on yearly cash flows. Prices, sale values and rents are your inputs, not forecasts.
Indicative only and before tax. Verify the tax position with your Chartered Accountant before acting, and confirm stamp duty and registration on Kaveri Online before registering.
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