: What is the return of investment I am getting? Say I buy a flat for 4000000 currency. I rent it at 16000 currency per month. If the value of the flat is also increasing (we neglect that). What is the return of investment

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(Amount of Return per period / Amount of Investment) * 100 =
Percentage of return on investment per period

In your case: (16000 / 4000000) * 100 = 0.4% per period

You then can multiply by the period to give you the return on investment over various periods of time (non-compounding). So if you collect that rent yearly, that's 0.4% per year. If you collect monthly that amount is per month, so per year you are getting 0.4 * 12 = 4.8% return on investment per year.

Similarly, you can see how long it takes to recoup your entire investment like so:

Amount of Investment / Amount of Return per period = periods until
full return

So if you make 16000 per period, it will take you 250 periods to get back 100% of your 4000000 unit investment. So if that rent is monthly, then that is a little under 21 years.