Rental Property ROI Calculator: Is Your Investment Profitable?

ROI on rental property isn't just cash flow divided by investment. Total return includes four components: cash flow, appreciation, mortgage paydown, and tax benefits. Most landlords only track the first one.

The Formula

Total ROI = (Cash Flow + Appreciation + Mortgage Paydown + Tax Savings) / Total Cash Invested

Real-World Example

Property: $350,000 CAD, down payment $70,000. Annual cash flow: $3,600. Appreciation (3%): $10,500. Mortgage principal paydown: $4,200. Tax savings: $1,800. Total return: $20,100 / $70,000 = 28.7%. Most people think their ROI is 5% (just cash flow) when it's actually 28.7%.

The Bottom Line

Track all four components to understand your true return. Mozongi REMA calculates cash flow, NOI, and equity automatically. Add appreciation estimates and you have the full picture.