Property Investment ROI Calculator

Because it's one of four components. Total return also includes appreciation, principal paydown by tenants, and — for a high earner — the tax benefit, which is often the largest line. Judging on cash flow alone undersells the asset here.

Add annual cash flow, appreciation, principal paydown, and estimated tax savings, then divide by total cash invested. That total-return view is why a deal with thin cash flow can still pencil for a high-W2 buyer.

Because depreciation (accelerated via cost seg and bonus) shelters income, and in the STR case can offset W-2 income at a high marginal rate. For an $800K+ household, deductions are worth more than to an average earner — that's the leverage.

Treat it as an estimate until your CPA confirms it. The offset depends on structure, participation, and your specific return — the calculator shows the shape of the deal, but the CPA sets the real number.

Yes, if the tax savings and equity build carry it. Many high-W2 deals here are justified by after-tax total return, not monthly cash flow — provided the CPA confirms the offset applies.

Plug in your actual marginal rate and a specific property's structure, CPA in the loop. That total-ROI-including-tax modeling is a core part of a Real Estate Review.