Real estate ROI calculator
On a buy-and-hold, BrickAtlas ROI is annual cash flow divided by cash invested. It is the same ratio as cash-on-cash. Flip ROI is a different calculation.
Calculate hold ROI
Enter the rental Analyst underwrites for a hold. ROI updates from annual cash flow and cash invested, which is the down payment, rehab, and purchase closing.
Purchase and loan
Income
Annual operating costs
Percent of gross rent
Hold ROI
4.1%
$3,550 annual cash flow ÷ $86,800 cash invested. Same ratio Analyst stores as cash-on-cash.
- Gross rent
- $25,200
- Vacancy
- $1,260
- Operating expenses
- $9,032
- NOI
- $14,908
- Annual debt service
- $11,358
- Monthly cash flow
- $296
- Purchase closing
- $5,550
- Cash invested
- $86,800
How hold ROI is calculated
ROI = annual cash flow ÷ total cash invested
This is the simple ROI on a BrickAtlas hold. Annual cash flow is effective rent minus operating expenses minus the mortgage. Cash invested is the down payment plus rehab plus purchase closing, and purchase closing defaults to 3% of price. Analyst stores this ratio as both ROI and cash-on-cash.
On the sample, annual cash flow of $3,550 divided by $86,800 cash invested is an ROI of 4.1%. Analyst stores that same ratio as cash-on-cash on a buy-and-hold memo.
Flip ROI is profit, not cash flow
A flip divides projected profit by the cash required to buy, rehab, and carry the project. That ratio lives on the flip profit calculator. This page does not use it.
Equity is not added in
Appreciation and principal paydown change wealth. They are not added to the numerator. ROI here is the cash yield on cash invested.
Cap rate uses a different denominator
Cap rate divides NOI by the purchase price and ignores the loan, rehab, and closing costs. ROI uses cash flow and cash invested.
What this number doesn’t tell you
Hold ROI is this year’s cash yield on the cash you put in. It does not include the sale, the refinance, or whether the metro belongs in the portfolio. BrickAtlas runs that loop after the screen: persona, metros, listings, then a strategy-aware Investment Memo.
A flip’s profit
If the plan is to sell, the hold ratio understates or overstates the project. Flip profit subtracts purchase, rehab, carry, loan payments during the hold, and selling costs from ARV.
Cash left after a refinance
BRRRR ROI depends on how much capital the refinance returns. Cash left in can be far smaller than the down payment plus rehab this page uses.
Whether this market fits
A strong hold ROI in the wrong metro is still the wrong next investment. Explore ranks cities with Atlas Score and persona Match before you underwrite an address.
FAQ
- How does BrickAtlas calculate real estate ROI?
- For a hold, ROI is annual cash flow divided by total cash invested. That is the same formula as cash-on-cash. A property with $12,000 of annual cash flow and $100,000 invested has a 12% ROI.
- Does this ROI include appreciation?
- No. Appreciation and loan paydown show up in the equity projection on a memo. They are not part of this ROI. The ratio is cash flow over cash invested.
- Is flip ROI the same number?
- No. Flip ROI is projected profit divided by the cash required to buy and carry the flip. Profit uses after-repair value minus purchase, rehab, closing, holding costs, loan payments, and selling costs.
- What hold ROI does BrickAtlas treat as strong?
- Because hold ROI is cash-on-cash, BrickAtlas uses the same bands: under 5% is weak, from 5% up to 8% is acceptable, and 8% or higher is strong.
- Where should I go after an ROI screen?
- If the yield is interesting, open Analyst on the address and compare hold, flip, and BRRRR in one memo. If you are still choosing a city, start in Explore.
Compare the hold with the other strategies
Set a persona, explore metros that match, and let Analyst score hold, flip, and BRRRR on the same address.
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