About the Fractional RE ROI Calculator
What is the Fractional RE ROI Calculator?
Fractional real estate platforms let you own a slice of a commercial building for a much smaller amount. Returns come from rent distributions and any gain when the property is sold.
Enter your investment, the promised net yield, the platform's management fee, expected appreciation and exit fee. The calculator gives the IRR after fees so you can compare it with REITs or fixed income.
How to use the Fractional RE ROI Calculator
- Amount Invested (₹) (sample: 25,00,000)
- Net Rental Yield Promised (% per year) (sample: 8)
- Platform Management Fee (% of rent) (sample: 10)
- Expected Property Appreciation (% per year) (sample: 3)
- Exit Fee (% of value) (sample: 1)
- Holding Period (years) (sample: 5)
- Press Calculate Fractional Ownership ROI (results also refresh as you type). The result card shows the Expected Annual Return (IRR), along with Yearly rental income after fees, Value at exit after fees, Total gain and Regulation.
Formula used
Yearly income = Investment × Yield × (1 − Fee); Exit value = Investment × (1 + Growth)ⁿ × (1 − Exit fee)
- IRR = the annual return that equates the investment with the income and exit value
Promised yields are not guaranteed: vacancies, tenant exits and lower resale prices reduce returns.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Amount Invested (₹) | 25,00,000 |
| Net Rental Yield Promised (% per year) | 8 |
| Platform Management Fee (% of rent) | 10 |
| Expected Property Appreciation (% per year) | 3 |
| Exit Fee (% of value) | 1 |
| Holding Period (years) | 5 |
| Result | Value |
|---|---|
| Expected Annual Return (IRR) | 9.64% |
| Yearly rental income after fees | ₹1,80,000 |
| Value at exit after fees | ₹28,69,203 |
| Total gain | ₹12,69,203 |
| Regulation | Choose SEBI-registered SM REITs for fractional ownership investments |
Tips for using the Fractional RE ROI Calculator
- SEBI regulates fractional ownership through Small and Medium REITs (SM REITs); prefer registered structures.
- Exits can be slow; treat the money as locked in until the property is sold.
- Distributions may be taxed as interest, dividend or rent depending on the structure.