Total Return on Property Calculator
Add cash flow, mortgage principal repaid and capital growth into one annual return figure measured against the cash you actually invested.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →A rental property earns in more than one way at once, and looking at any single measure understates it. Cash flow is what reaches your account. Principal repayment quietly converts debt into equity. Capital growth changes the value of the whole asset, not just the part you paid for. Together they are the total return.
Only cash flow is money you can spend today; the rest is wealth on paper until you sell or refinance. The calculator keeps them visible separately so you can see which part of the return is real cash and which part is a bet on the market.
The calculation
Total gain = cash flow + principal repaid + (value × growth rate). Total return = that gain ÷ the cash you invested. Growth is applied to the whole property value, not to your equity, which is where leverage does its work.
Worked example
With 100,000 invested in a 400,000 property: 7,200 of cash flow, 4,100 of principal repaid and 3% growth worth 12,000 gives a total gain of 23,300 — a 23.3% return on your cash. Cash flow alone was 7.2%, so two thirds of the return is wealth you cannot spend yet.
Leverage cuts both ways
Growth is calculated on the full value while the return is measured against your cash, which is why a modest 3% rise becomes 12% of your investment. A 3% fall does exactly the same in reverse, and unlike the gain it arrives alongside the same mortgage payment.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
Is total return the right measure?
It is the most complete one, provided you remember that only the cash flow portion is spendable. An investor who needs income today should weight cash flow heavily even when total return looks strong.
What growth rate should I assume?
Something close to long-run local inflation is a defensible default. Rates well above that are extrapolations of a recent boom, and projections built on them fail exactly when you most need them to hold.
Why does principal repayment count as a return?
Because it increases your equity by exactly that amount. Money moves from the lender claim to yours. It is not cash you can spend, but it is a real change in what you own.