← Back to BlogMay 20267 minDan White
Real Estate ROI Calculator — Free Tool for Investors
ROI tells you how efficiently your capital is working. A $40,000 profit on a $60,000 cash investment is a 67% ROI. The same profit on a $200,000 investment is 20%. Both are good — but knowing the difference tells you which deals to prioritize.
Market Context
Live Market Data
Washington, DC Housing Market
Cool Market
Data through Mar 2026
Median Sale Price
$590,000
+0.8% YoY
Median Days on Market
44 days
lower = faster market
Sale-to-List Ratio
99.7%
buyers' market
Homes Sold
4,457
last reported month
Source: Redfin Data Center. Updated monthly. Data reflects Washington, DC residential sales.
redfin.comROI Formula for Real Estate
ROI = Net Profit ÷ Total Cash Invested × 100
For a flip: net profit is ARV minus all costs. Total cash invested is your down payment, closing costs, rehab, and any out-of-pocket holding costs. For a rental: use annual cash flow as your "profit" and total cash invested as the denominator.
ROI by Strategy
- Fix and flip: Target 20–35% ROI minimum. Below 15% the risk/reward ratio is poor.
- Rental (cash-on-cash): 4–8% annually is realistic in most markets. 10%+ is exceptional.
- BRRRR: Infinite ROI if you get all your cash back at refinance — you own a cash-flowing asset with zero remaining cash invested.
- Wholesale: Very high ROI — minimal capital at risk relative to assignment fee earned.
Calculate Your Investment ROI Free
Freddie calculates ROI for flip, rental, BRRRR, or wholesale — whichever strategy fits your deal. Free in one conversation.
Calculate My ROI Free →Why ROI Alone Isn't the Full Picture
A 40% ROI on a $50,000 investment is $20,000. A 20% ROI on a $250,000 investment is $50,000. The higher-ROI deal made you less money. For flippers who want to maximize total earnings, absolute profit matters as much as percentage ROI. For investors scaling a portfolio, ROI per dollar deployed matters more. Know which metric you're optimizing for.
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He has been investing in real estate for 20+ years.