How to Calculate ADU/Granny Flat ROI

What is ADU/Granny Flat ROI?

The ADU/Granny Flat ROI Calculator projects rental income, cash-on-cash yield, payback period, and 10-year total return (income + appreciation) for accessory dwelling units. Typical California ADU: $150k build, $1,800-2,500 rent. Many municipalities have eased ADU permits as a YIMBY housing response.

Formula

Annual Income = (Rent − Expenses) × 12; ROI = Income / Build Cost

Step-by-Step Guide

1Enter required inputs
2Calculator outputs key result and related metrics
3Review and compare scenarios

Worked Examples

Input

$150k build, $1800 rent, $300 expenses, 3% appreciation

Result

12% yield, 8.3 yr payback, $295k 10-yr return

Common Mistakes to Avoid

✕Forgetting to include all relevant inputs
✕Using outdated reference values

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