Real Estate ROI Calculator

Calculate the potential return on investment for your international property purchase

Purchase Information

Purchase Price

Closing Costs

Renovation Costs

Annual Appreciation (%)

Holding Period (Years)

Financing

Down Payment

Interest Rate (%)

Loan Term (Years)

Income

Monthly Rent

Other Annual Income

Annual Rent Increase (%)

Vacancy Rate (%)

Expenses

Annual Property Tax

Annual Insurance

Annual Maintenance

Annual Property Management

Annual Utilities

Other Annual Expenses

Understanding ROI in Real Estate

Return on Investment (ROI) is a key metric for evaluating the profitability of a real estate investment. It measures the return (profit) on an investment relative to its cost, expressed as a percentage.

For real estate investments, ROI can be calculated in different ways depending on whether you're considering cash flow, appreciation, or both. Our calculator provides a comprehensive view that includes:

Cash-on-Cash Return: Annual pre-tax cash flow divided by the total cash invested
Capitalization Rate (Cap Rate): Net operating income divided by the property value
Total ROI: Combines rental income, property appreciation, and tax benefits over the investment period
Annualized ROI: Total ROI divided by the number of years you plan to hold the property

When evaluating international property investments, it's important to consider country-specific factors like local taxes, currency exchange risks, and market growth trends that can significantly impact your returns.

Factors Affecting ROI in Different Countries

Spain

Average rental yields: 4-6% in major cities
Non-resident income tax: 24% on rental income
Property tax (IBI): 0.4-1.1% of cadastral value annually
Strong tourism market supports short-term rental returns

United Kingdom

Average rental yields: 3.5-5% in major cities
Non-resident income tax: 20% basic rate on rental income
Council tax: Varies by property band and location
Strong capital appreciation in London and major cities

United Arab Emirates

Average rental yields: 5-8% in Dubai
No income tax on rental income
Service charges can be significant (2-5% annually)
Market volatility can affect capital appreciation

Portugal

Average rental yields: 4-7% in Lisbon and Porto
Non-Habitual Resident status offers tax benefits
IMI property tax: 0.3-0.8% of tax value annually
Strong tourism supports short-term rental market