Recurring Operating Expenses


ROI for the holding period:
100 %
Value of property at the end of the period:
Annualizes ROI:
7.27 %
Inflation adjusted ROI per annum (Real return):
7.27 %
Monthly loan installment:
LKR 165,188
Total cost of loan:
LKR 165,188
Value of property at the end of the period:

Real Estate Return on Investment (ROI) Calculator

It is an already known fact that real estate in Sri Lanka is one of the most profitable sources of investment. When compared to other investments on an ROI calculator, the return generated is higher as property value increases. The constant external developments taking place around the neighborhood and other factors, such as the property condition, also impact this.

There are many ways people can invest in real estate. You can use your own funds to purchase an apartment for sale in Sri Lanka or a house for sale in Sri Lanka or apply for a mortgage loan. Getting a loan to buy an apartment in Colombo is a safer option sometimes than investing on your own. Since the banks use intricate systems and methods to perform checks and balances, the chances of falling for a scam are low.

For first-time investors searching how to invest in real estate, the process is no different than buying any type of property for sale in Sri Lanka with the help of a property professional. The only difference that sets it apart is how it is being used and the intention of purchasing it. While some buy property for residential purposes, investors purchase properties to be let out, earning them a rental income monthly. The more facilities and amenities a property includes, the higher the rental can be charged. The location of the property is another factor that determines how much return can be earned from this investment. These are some of the many benefits investors gain by investing in real estate. However, earning the highest return depends on how the investment is made smartly. On the return on investment or ROI calculator designed by LankaPropertyWeb investors can find information that can be used to determine the return from a particular property before making an investment. Through this they can determine the profitability of a particular property before investing.

Using the property ROI calculator, you can also find the areas with the best real estate that generate the highest returns for your investment. Colombo and its suburbs are generally known to have the highest ROI when investing in terms of residential and commercial real estate. Because of this, the demand for property in these areas is always high.

Below are a few other FAQs on real estate investments in Sri Lanka.

  • How much do I need to invest in real estate?

The amount to invest in real estate mainly depends on the property you are purchasing. This can range between LKR 30M and more based on the location of the property, the features, the property type, etc. However, you don’t have to fund for the entire purchase as you can buy property using a mortgage loan. Once the property is rented out, you can use the rental income to pay off your debt and interest and also earn a return on your investment.

  • How to calculate your monthly return on investment from a property?

You can use the ROI calculator designed by LankaPropertyWeb, especially for properties in Sri Lanka to calculate your monthly return on investment. Through this, you can find out the period for which you have to hold on to the property to earn a return, customize the calculation based on the home loan you have obtained and more.

  • What is the real estate investment trust Sri Lanka (SL-REIT)?

The real estate investment trust in Sri Lanka is a mutual fund of property assets. Through this, investors are able to diversify their risk of investing in real estate and solve the liquidity issue of real estate. A pool of property buyers invest their funds with the SL-REIT and these funds are used to invest in a diversified portfolio.