Real Estate vs Stock Market Calculator

Compare total returns from leveraged rental property vs index fund investing over time.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Investment amount ($)

Years held

Home appreciation (%/yr)

Gross rental yield (%)

Stock market return (%/yr)

Tab to move between fields

Results

Better option (1=RE, 2=Stocks)

Real estate total return ($)$120,174.00

Stock market total return ($)$317,725.00

Real estate CAGR (%)5.4%

Stock CAGR (%)10%

Net annual rental income ($)-$14,500.00

How to Use This Calculator

Enter the investment amount — for real estate, this represents your down payment or purchase price.
Set the holding period in years and the expected home appreciation rate (historically ~3–4%).
Input the rental yield percentage and the expected stock market return (historically ~10%).
Compare Real Estate Total Return versus Stock Total Return to see which builds more wealth over your timeline.
Review Net Annual Rental Income and the Winner output to factor in cash flow alongside appreciation.

What each input means

Investment amount ($): Cash available to invest (used as down payment for RE).
Years held: Investment time horizon.
Home appreciation (%/yr): Annual home price appreciation.
Gross rental yield (%): Annual gross rent as percentage of property value.
Stock market return (%/yr): Expected annual stock market total return.

What each result means

Real estate total return ($): Total profit from rental property.
Stock market total return ($): Total profit from stock investment.
Real estate CAGR (%): Annualized return on equity for real estate.
Stock CAGR (%): Annualized stock market return.
Net annual rental income ($): Annual rental income after all expenses.
Better option (1=RE, 2=Stocks): 1 = Real estate wins, 2 = Stocks win.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Investment amount ($) = 100000, Years held = 15, Home appreciation (%/yr) = 3.5, Gross rental yield (%) = 5 = 5 input(s) provided
Calculate Better option
Better option
2 = 2
Calculate Real estate total return
Real estate total return = realEstateEquity - downPayment + netRentalIncome * yearsHeld
120174 = $120,174
Calculate Stock market total return
Stock market total return = stockFinalValue - investmentAmount
317725 = $317,725

Engine last updated July 28, 2026. Checked against 2 independently-derived tests — how we verify calculators.

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