This Land Investment ROI Calculator is designed to give you an informational estimate of your land’s potential future value based on historical appreciation rates and optional development impact. Land values can increase steadily over time, but they can also surge unexpectedly when development approaches, such as new roads, utilities, zoning changes, or nearby population growth. While this tool helps highlight possible returns and the cost of long-term ownership (like annual property taxes), it should be used for informational purposes only. Actual results can vary significantly due to market shifts, regional economic changes, and specific factors tied to your parcel’s exact location.
What could be a potential land investments return
Land Investment ROI Calculator
Land Investment ROI Calculator
Found only on LandZero tools
How to Use the ROI Calculator
Price Paid for Land
Enter the total amount you paid for the property, including closing costs such as title fees, agent commissions, recording fees, and any other one-time expenses at the time of purchase. To get a more accurate picture of your current investment, also you could add in the annual property taxes you’ve already paid since owning the land as the price paid amount does not go back in time.
Current Land Value
This should be your best estimate of what the land is worth today. You can get a rough idea by searching comparable properties in your area on sites like Zillow, using the “Land” filter. Look at properties of similar size, location, and access features to come up with a value estimate. We built this tool to look at future returns so knowing the value of your land today is a key starting point.
Taxes and Holding Time
The longer you hold your property, the more you pay in taxes. Those yearly expenses directly reduce your overall return on investment. The catch is, land also often appreciates over time. So by holding long term, you have the best chance of a high ROI. However, high property taxes can offset those gains, especially if you hold for 10, 20, or 30 years. If your annual taxes outweigh your profit in this calculator you may want to consider rethinking your strategy with the land.
Development Multiplier
This optional setting accounts for the major increases in value that can occur when development moves closer to your land. Ask yourself, Is the city expanding in your direction? Have roads, power lines, or water infrastructure been installed nearby? Are homes, businesses, or schools planned in the area within your projected holding period? If so, your land may experience accelerated appreciation beyond normal market growth.
Understanding Land Investing
Is buying land a good investment?
Yes, buying land can be a strong long-term investment, especially in growing or undeveloped areas. Unlike homes, land requires little maintenance and often appreciates over time. Strategic investors look for areas near expanding infrastructure or rezoning changes to maximize profits.
How much can land increase in value over time?
Land typically appreciates at an average of 3% to 6% annually in stable markets, but values can surge dramatically when development moves in. For example, land near expanding cities, highways, utility lines or major developments are a good start. Under the right conditions and time held, affordable raw land bought in the past has turned families from rags to riches. A lot of the high family wealth in AmericaKey factors that impact resale value include location, road access, zoning, availability of utilities, and nearby development. Even two similar-sized parcels can have very different values if one is landlocked or in a slow-growth zone. has come from real estate and land held by their families over time.
What affects the resale value of vacant land?
Key factors that impact resale value include location, road access, zoning, availability of utilities, and nearby development. Even two similar-sized parcels can have very different values if one a different shape or just looks visually cleaner kept. Some people want rural land while others want buildable city lots. Land in most all cases takes no work at all, so the resale value is simply the location.
Can you make money flipping land?
Yes, many investors profit by buying undervalued land and reselling it at a higher price, either as-is or after adding improvements like access roads, surveys, or clearing. Flipping land often requires less capital than flipping houses and can yield strong returns with proper research. With homes most people want full value for those, and they want to keep them long term. With land, some people dreams to build faded away, or they are just tied of paying annual taxes. So it’s more of a case of finding those who will fire sale and then finding a buyer who has future plans they can do with the land.
What is a good ROI for land investment?
A solid ROI for land is typically between 10% and 30%, but this varies depending on holding time, tax costs, and market conditions and how the area has changed. Some investors see higher returns in fast-developing areas for quick flips, while others buy rural in hopes for those long term big gains. It’s not unheard of at all in the land market to make 300% to 500% in just a few years on a parcel when picked in a great location that is coming up fast.
How long should you hold land before selling?
Many land investors hold for 5 to 10 years to allow for appreciation and potential development. However, timing depends on local growth trends, tax burdens, and personal goals. Selling too early may limit returns, while holding too long can increase carrying costs.
Does adding utilities or road access increase land value?
Yes, adding infrastructure like power, water, septic, or road access can significantly increase a property’s resale value. These improvements make the land more usable and appealing to buyers, especially those looking to build immediately. When you check websites like land.com to get your estimated land value today by comparable listings. Look for those with improvements, even just one with a water well could be $10k over the other listings. We also have another tool available to use here that will show you cost and potential sale value gain by adding improvements Land Improvement Cost Calculator
Why Buying Land Is a Brilliant Investment
Land is one of the most stable and undervalued investments available. It doesn’t wear out, its supply is capped, and requires little to no maintenance. Unlike stocks or buildings, raw land is a tangible asset that holds value and often appreciates over time, especially as development expands. Whether you’re looking to build, hold, or resell, land offers flexibility, security, and long term gains.