PropertyROI - UK Property Investment Analysis
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    Investment Metrics

    ROI (Return on Investment)

    The percentage return on your property investment

    Full Definition

    Return on Investment (ROI) measures the profitability of a property investment as a percentage. It's calculated by dividing the annual profit by the total investment cost, then multiplying by 100. For property investors, this typically includes rental income minus all expenses, divided by the purchase price plus acquisition costs. A good ROI for UK buy-to-let is typically 8-12%.

    Related Terms

    Gross Yield
    Net Yield
    Cash-on-Cash Return

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    More Investment Metrics Terms

    Gross Yield

    Annual rental income as a percentage of property price

    Net Yield

    Annual profit after expenses as a percentage of property price

    Cash-on-Cash Return

    Annual cash flow relative to cash invested

    Capital Growth

    Increase in property value over time

    Void Allowance

    Budget set aside for empty periods