Total Return on Property Calculator

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.

Frequently asked questions