Property ROI Calculator — South Africa
Measure your full return including rental income and capital growth over 5 and 10 years.
Property ROI Calculator
Total return = rental income + capital growth − all costs
5-Year Return
10-Year Return
* ROI is calculated on your deposit (equity invested). Capital growth and rental increases are projected estimates. Past performance does not guarantee future returns. CGT on sale is not included.
Frequently Asked Questions
Common questions about this calculator
▸ What is a good ROI on property in South Africa?
A total return (rental income plus capital growth) of 12–18% per year on your equity invested is considered strong for SA residential property. This typically combines a net yield of 4–6% with capital growth of 6–8% per year.
▸ What is the average capital growth rate for SA property?
South African residential property has delivered average nominal capital growth of 6–8% per year over the past 20 years. Cape Town has consistently outperformed this average; some inland areas have underperformed.
▸ How does leverage improve property ROI?
Leverage amplifies returns. If a R2 million property grows 7% in a year, that is R140,000 in capital growth. If you only put in a R400,000 deposit, your ROI on invested capital is 35% from capital growth alone — before rental income. This is the core argument for property investment.
▸ Should I include bond repayment in my ROI calculation?
Bond repayments should be included as a cost in cash flow calculations, but the principal portion of each repayment builds equity — it is not a loss. A full ROI analysis considers total equity position (property value minus remaining bond balance) rather than just cash flow.
How to Use This Calculator
Enter your purchase price, deposit, and monthly rent. Add total monthly costs excluding bond. Use 10.75% for bond rate and 7% for capital growth if unsure — reasonable SA long-term averages.
ROI is calculated on your deposit (equity invested). The 10-year view is where SA property investment makes its strongest case — leverage and capital growth compound significantly over time.