Rental Property Calculator
Analyze rental cash flow and returns.
Inputs
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Result
Monthly Cash Flow$365.10
Annual NOI$22,800.00
Cap Rate7.60%
Cash-on-Cash Return5.84%
About the Rental Property Calculator
The Rental Property Calculator analyzes a rental investment by computing monthly cash flow, annual net operating income (NOI), cap rate, and cash-on-cash return, so you can compare properties on a common footing.
Calculation method
Cap rate = NOI ÷ Purchase price. Cash-on-cash = Annual pre-tax cash flow ÷ Cash invested. NOI excludes financing; cash flow subtracts the mortgage payment.
NOI = (Rent − Operating expenses) × 12
Cash flow = Rent − Expenses − Mortgage payment
Cap rate = NOI / Price
CoC = Annual cash flow / Down paymentHow to use this calculator
- Enter purchase price and down payment percentage.
- Enter loan rate, monthly rent, and monthly operating expenses.
- Review cash flow, cap rate, and cash-on-cash on the right.
Example
A $300,000 property with 25% down at 7.25%, $2,500 rent and $600 expenses produces about $365 monthly cash flow, a 7.6% cap rate and a 5.8% cash-on-cash return.
Frequently asked questions
What is a good cap rate?
Cap rates vary by market. 4–6% is common in high-priced coastal cities; 7–10% is typical in secondary and tertiary markets. Higher usually means higher risk or lower growth.
Should I include vacancy in expenses?
Yes. Add 5–8% of gross rent to expenses to account for turnover and vacant months so returns are realistic.
Is cash-on-cash the same as ROI?
No. Cash-on-cash measures only pre-tax cash yield on the money you put in. Total ROI also includes principal paydown, appreciation and tax benefits.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.