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How To Do a Real Estate Investment Profit Calculation


This calculation is the one that real estate investors hope to utilize. It is used when a property is sold for more than the purchase price. know it so that you can help clients to determine possible returns.
Difficulty: Easy
Time Required: 5 minutes

Here's How:

  1. Subtract the purchase price from the net from the sale of the property. Example: Property is sold for $250,000 after commissions and expenses to close. It was originally purchased for $210,000.

    $250,000 -$210,000 = $40,000

  2. Divide the profit amount by the purchase price.

    $40,000 ÷ $210,000 = 0.19 or 19% Profit

What You Need

  • Normal calculator

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