The ROI calculator designed by LankaPropertyWeb allows users to calculate their return on a property by filtering it based on location, purchase, price and more. The calculator’s results generate the holding period return, the inflation-adjusted real return, and the annual return.

The investment section also allows investors to locate high-yield properties generated using LankaPropertyWeb’s proprietary algorithm. The algorithm selects the best investment opportunities listed on and recommends them to users in the “top investment properties” section. This helps investors find the ideal properties to get the maximum return on their investment without any hassle. The guidelines and other information also available on the website allow an investor to make more informed decisions about a property of their choice.

Steps to follow when using the ROI calculator

The rate of return that a real estate investor can achieve after deducting the related costs of the investment is called the real return. It consists of two elements. The first is the capital gain which is the increase in value of the property during the holding period or the price at which you sell the property, and the other is the income generated during the period (rental income).

To calculate the ROI, subtract the costs incurred during the retention period such as insurance premiums, management fees, interest paid (if the property was purchased with a bank loan) etc.

With the specially designed LankaPropertyWeb ROI Calculator you can find your return faster and easier.

Hypothetical scenario

Mr Perera is a private individual who buys a house in Colombo for Rs.25Mn with his savings worth Rs.12.5Mn. The balance is expected to come from his bank using a home loan with a 7% interest.

To cover the repayment of his loan, he leased the property for Rs.150,000 per month and included a clause to increase the rent by 3% annually in the agreement.

Perera was required to pay the management fee of Rs.15,000 monthly, which increased by 5% each year.

At the end of the loan repayment period, Mr. Perera to sell his investment assets to realize his profit.

The annual appreciation of the apartment is 5% per annum and Mr Perera is required to pay 3% as a broker’s fee upon successful completion of the transaction.

According to the data he entered into the ROI calculator, he realized that he had made a 109.88% return on his investment.

The investment section on the LankaPropertyWeb portal also aims to become a platform to diversify real estate investments within Sri Lanka by providing foreign investors with specific information about Sri Lankan real estate. With the recent budget proposal that allows non-resident Sri Lankans to buy luxury apartments and investors can purchase real estate through the Sri Lanka Real Estate Investment Fund (SLREIT) to enjoy various investment benefits, the required information about the process is also available for free on this page .

By investing in real estate at a time when the pandemic has led many developers to offer discounts and offers, investors can now certainly get the best returns.