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Rental Property ROI Calculator

Calculate Cap Rate, Cash-on-Cash Return, and NOI.

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Analyze the potential returns of an investment property before you buy.

Rental Property ROI Calculator

Your Results

Enter your details to see results.

How This is Calculated

Formula:

Cap Rate = Net Operating Income (NOI) / Property Purchase Price | Cash-on-Cash = Annual Pre-Tax Cash Flow / Total Cash Invested

Evaluates commercial and residential real estate investment profitability factoring in gross rents, vacancy rates, property management, taxes, and mortgage service.

Sources & Assumptions: National Association of Realtors (NAR) and CCIM real estate underwriting standards.

How to Use This Calculator

Enter the purchase price, down payment, expected monthly rent, and expenses.

Frequently Asked Questions

What is a good Cap Rate?

Generally, anything between 4% and 10% is considered a good cap rate depending on the market.

What metrics does the Rental Property ROI Calculator provide?

The Rental Property ROI Calculator provides essential real estate metrics: Net Operating Income (NOI), Cap Rate, and Cash-on-Cash Return.

What is a good Cap Rate in the Rental Property ROI Calculator?

While it varies by market, most investors look for a Cap Rate between 5% and 8% when using the Rental Property ROI Calculator.

Why is Cash-on-Cash higher than Cap Rate in the Rental Property ROI Calculator?

Cash-on-Cash factors in leverage (your mortgage). The Rental Property ROI Calculator shows how using a bank’s money amplifies your personal return.

Does the Rental Property ROI Calculator include vacancy rates?

To get an accurate NOI, you should manually reduce your expected monthly rent input by 5-10% to account for vacancy in the Rental Property ROI Calculator.

Results are for informational purposes only and do not constitute financial advice. Always consult a qualified financial professional.