Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

How to Calculate ROI in Real Estate

By Matthew DiLallo – Updated Sep 9, 2024 at 11:18AM

Key Points

  • ROI measures return on cost or equity in real estate, aiding investment comparisons.
  • Using leverage in real estate can greatly increase ROI by considering invested equity.
  • As property risk and efforts vary, compare ROI to benchmarks like stock returns or cap rates.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.