Real estate ROI & CAGR calculator
Find the total return, annual ROI and compounded growth on a flat or plot, after stamp duty and selling costs, and see how it compares with a fixed deposit.
Free · No sign-up · Updated
Quick answer
Property ROI = gain / amount invested. CAGR = (sale value / invested)^(1 / years) - 1. A flat bought for ₹1.22 Cr and sold for ₹2.29 Cr after 3 years returns 87.50% in total, or 23.31% a year compounded.
Tell us about your flat.
Enter what you paid, what you expect to sell at, and how long you hold it.
₹1.22 Cr in an FD would grow to ₹1.50 Cr in 36 months. This property returns ₹79.55 L more.
Amounts in ₹; ₹1,00,000 = ₹1 lakh.
Same gain, different years
A property that doubles in value is a great deal over three years and an ordinary one over ten. The table uses the example numbers to show how the holding period changes the real return.
Return by holding period
Same buy and sell values, with the example costs and FD rate. The example holding period is highlighted.
| Held for | ROI | Simple annual | CAGR / IRR | vs FD 7% |
|---|---|---|---|---|
| 1 year | 87.50% | 87.50% | 87.50% | +₹98.53 L |
| 2 years | 87.50% | 43.75% | 36.93% | +₹89.36 L |
| 3 years | 87.50% | 29.17% | 23.31% | +₹79.55 L |
| 5 years | 87.50% | 17.50% | 13.40% | +₹57.83 L |
| 7 years | 87.50% | 12.50% | 9.40% | +₹32.95 L |
| 10 years | 87.50% | 8.75% | 6.49% | -₹11.28 L |
How it is calculated
ROI
ROI = (Net proceeds - Total invested) / Total invested x 100Total invested = buy value + stamp duty and registration. Net proceeds = sell value - selling costs.
Simple annual ROI
Simple annual ROI = ROI / YearsAssumes the gain builds in a straight line.
CAGR / IRR
CAGR = (Net proceeds / Total invested)^(1 / Years) - 1Compounded yearly growth. With one buy and one sale, IRR equals CAGR.
How to use this calculator
- Enter the buy and sell price per sq ft and the area. Use the same area basis (carpet or super) for both.
- Set the holding period in months, from purchase to sale.
- Add stamp duty and brokerage for a net figure. Leave them at 0 for a gross return.
- Compare with an FD to see if the property beat a safe investment.
Questions buyers ask
How do you calculate ROI on a property?
ROI = (net sale proceeds - total invested) / total invested x 100. A 1,700 sq ft flat bought at ₹7,200 per sq ft and sold at ₹13,500 per sq ft after 3 years gives a gain of ₹1.07 Cr, an ROI of 87.50% and a CAGR of 23.31%.
Why is CAGR lower than simple annual ROI?
Simple annual ROI spreads the gain evenly over the years. CAGR assumes each year's gain also earns a return the next year, so a lower yearly rate reaches the same final value. Use CAGR when comparing property with FDs, mutual funds or other properties.
Is CAGR the same as IRR for real estate?
Yes, when there is one purchase and one sale. If you paid in instalments, received rent or spent on renovation, IRR differs from CAGR because it accounts for the timing of each cash flow.
Should I include stamp duty in the ROI calculation?
Yes. Stamp duty and registration are paid on day one and not recovered on sale. In Uttar Pradesh they add up to roughly 8% of the property value, which can cut a 3-year CAGR by 2-3 percentage points.
What is a good return on property in India?
There is no fixed number. Compare your CAGR with a safe benchmark such as a bank FD (around 6-7%) and with the returns you could get elsewhere at similar risk. Remember that property is less liquid and has higher transaction costs.
Does this include rental income or capital gains tax?
No. The calculator measures capital appreciation before tax. Rental income would raise your total return, and capital gains tax depends on your holding period and tax situation, so speak to a tax advisor before you sell.
Results are pre-tax estimates of capital appreciation only. Not investment or tax advice.