How to Calculate ROI Before Buying a Plot

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If you're planning to invest in land, it's important to know how much profit you can earn in the future. ROI helps you understand that. ROI means Return on Investment – how much money you make from your investment.

Let’s learn how to calculate ROI in an easy way.

What is ROI?

ROI (Return on Investment) tells you how much profit you can earn from the plot you buy. It helps you decide if the plot is a good investment or not.

Easy ROI Formula:

ROI (%) = (Profit / Total Investment Cost) × 100

Profit = Final value (selling price) – Total cost (all money spent to buy and register the plot)

Steps to Calculate ROI

  1. 1. Find your total investment:

Add the plot price + registration + stamp duty + legal or development costs.

  1. Estimate the future selling price:

Check what similar plots in the area are selling for and guess the value after a few years.

  1. Use the formula:

Put the numbers in the formula to find your ROI percentage.

Example:

You buy a plot in Pune for ₹20,00,000.

You also spend ₹2,00,000 on registration and other charges.

Total Investment = ₹22,00,000

Estimated Selling Price in 5 years = ₹30,00,000

Profit = ₹30,00,000 - ₹22,00,000 = ₹8,00,000

Now use the formula:

ROI = (₹8,00,000 / ₹22,00,000) × 100 = 36.36%

So, your return will be about 36% in 5 years.

Tips to Remember

Always check the circle rate (government rate of land) before buying.

Look for areas with upcoming roads, schools, or metro—these increase plot value.

Think about how long you will keep the land. Longer time usually means more profit.

Add all costs while calculating, even legal or loan charges.

Secure Your Investment with Genuine Plots 
Your trusted partner in plot investments across Pune. From circle rate analysis to ROI calculation, buying, selling, loan guidance, and agri-certificate application, Genuine Plots supports you at every step.



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