Real Estate

Rental Property ROI Calculator

Calculate cap rate, cash-on-cash return, NOI, and full investment analysis for any rental property.

Property Details

$
%

= $60,000.00

%
$

Annual Expenses

%
$
$
$
%

= $2,006.40/yr

Upfront Costs

$
$

Results

Monthly cash flow
$-223.93
Annual: $-2,687.11
Cap rate
5.49%
Cash-on-cash return
-3.78%
Net operating income
$16,473.60
Monthly mortgage
$1,596.73
Gross rent multiplier
11.4x
Total cash invested
$71,000.00
Effective gross income
$25,080.00
Total annual expenses
$27,767.11

Rental property metrics explained

Cap rate

NOI divided by purchase price. A cap rate of 6-8% is generally considered good. Higher cap rates often indicate higher risk markets.

Cash-on-cash return

Annual cash flow divided by total cash invested. Measures return on your actual out-of-pocket investment, not total property value.

The 1% rule

A quick filter: monthly rent should be at least 1% of purchase price. A $300k property should rent for $3,000+/mo to be worth analyzing further.

NOI vs cash flow

NOI excludes mortgage payments (useful for comparing properties). Cash flow includes debt service — what you actually pocket each month.

For estimation only. Does not include depreciation, capital gains tax, or HOA fees. Consult a real estate professional and tax advisor before investing.