Equivalent Stock Return
Total Year 1 ROI comparable to stock market annual returns.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Equivalent Stock Return Formula
What This Means
A sample property priced at $385,000 with $2,850/month rent has a equivalent stock return of 14.82%. This bridges the gap between real estate and stock investing. When someone says "the S&P 500 returned 10%", you can directly compare your property's 18% total ROI to evaluate which investment performed better.
Where This Value Comes From
Equivalent Stock Return is not entered directly — it is calculated from Total ROI (Year 1). See the formula breakdown above and the detailed inputs below.
Calculated From
Equivalent Stock Return is calculated using these inputs:
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
This bridges the gap between real estate and stock investing. When someone says "the S&P 500 returned 10%", you can directly compare your property's 18% total ROI to evaluate which investment performed better.
Detailed Explanation
The Equivalent Stock Return translates your total real estate ROI (cash flow + appreciation + paydown) into a number directly comparable to stock market returns.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Equivalent Bond Yield
UCash-on-cash return comparable to bond yields.
Equivalent Savings Yield
UCash return comparable to savings account interest rates.
Return vs S&P 500
WYour total ROI minus the historical 10% S&P 500 average.
Income Per Hour of Management
UAnnual cash flow divided by annual management hours.
Monthly Management Hours
1The estimated hours per month spent managing the property.
Cap Rate
2Net operating income as a percentage of property value.
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