Rowhani, 64, a former top nuclear negotiator who has championed more constructive engagement with world powers, won outright with 18.6 million votes, or 50.68 per cent of those cast.
Announcing Rowhani's win, Interior Minister Mohammad Mostafa Najjar said 36.7 million people, or 72.7 per cent of the electorate, had voted yesterday.
More than 50.5 million Iranians had been eligible to vote for a successor to Mahmud Ahmadinejad, who was constitutionally barred from standing again after serving two consecutive terms.
Current nuclear negotiator, Saeed Jalili, was third with 3.17 million.
The withdrawal of the sole reformist from the race had left the field open for Rowhani to win the votes of both moderates and reformists and establish a large lead over his divided hardline opponents.
Former first vice president Mohammad Reza Aref pulled out on Tuesday at the urging of reformist ex-president Mohammad Khatami, who then threw his weight behind Rowhani.
Yesterday's election was the first since the disputed 2009 re-election of Ahmadinejad triggered massive street protests by supporters of his rivals, that were crushed in a deadly crackdown.
In 2003, when Rowhani was top nuclear negotiator under Khatami, the Islamic republic agreed to suspend its controversial enrichment of uranium.
The programme restarted two years later when Ahmadinejad was first elected.
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