Rental Property Cap Rate & ROI Calculator
Analyze a rental property: net operating income, cap rate, monthly cash flow and cash-on-cash return, after vacancy, expenses and the mortgage.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter the purchase price, rent and operating expenses.
- 2Add your financing (down payment, rate) to see cash flow and cash-on-cash return.
How it's calculated
NOI = rent × 12 × (1 − vacancy) − operating expenses (excluding mortgage). Cap rate = NOI ÷ price. Cash flow = NOI − mortgage payments. Cash-on-cash = annual cash flow ÷ cash invested (down payment + closing + repairs).
Frequently asked questions
What's a good cap rate?
It depends on the market and risk. Many investors look for roughly 5–10%; lower cap rates are typical in expensive, stable areas.
Cap rate vs cash-on-cash — what's the difference?
Cap rate ignores financing and measures the property itself. Cash-on-cash measures the return on the cash you actually put in, after the mortgage.
What is the 1% rule?
A quick screen: monthly rent should be at least 1% of the purchase price. It's a rough filter, not a replacement for full analysis.