# ROI mortgage calculator

# ROI mortgage percentage

To calculate the ROI (Return on Investment) percentage for a mortgage investment in a rental property, you can use the following formula:

**ROI % = (Net Annual Income / Total Investment) x 100**

Where:

**Net Annual Income =**Annual Rental Income – Annual Expenses (including mortgage payments, property taxes, insurance, and maintenance costs)**Total Investment =**Down Payment + Closing Costs + Renovations + Other Expenses

Here are the steps to calculate the ROI percentage for a mortgage investment:

- Determine the Net Annual Income by subtracting the Annual Expenses from the Annual Rental Income.
- Determine the Total Investment by adding up the Down Payment, Closing Costs, Renovations, and Other Expenses.
- Plug the values into the formula to calculate the ROI percentage.

For example, let’s say you purchase a rental property for $300,000, put a 20% down payment of $60,000, and spend $10,000 on closing costs and renovations. The property generates $24,000 in annual rental income, and the annual expenses (including the mortgage payments, property taxes, insurance, and maintenance costs) total $16,000.

**Net Annual Income = $24,000 – $16,000 = $8,000 Total Investment = $60,000 + $10,000 = $70,000**

ROI % = ($8,000 / $70,000) x 100 = 11.43%

Therefore, the ROI percentage for this mortgage investment in a rental property is 11.43%.