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Rental Property Calculator: ROI, Cap Rate and Cash Flow

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Cash on Cash Return Calculator With Cap Rate and NOI

Three steps: your financing, your income and expenses, then your contact details. Your results appear right after the last one.

Step 1 of 3

Financing

Repairs or upgrades you'll pay for up front.

Loan payment
$0$0

A month, then a year: principal and interest.

Estimates only. This calculator is general information, not financial, tax or investment advice, and its results depend on the numbers you enter. Use of this calculator is subject to our Terms of Service.

Cap rate

How to Calculate Cap Rate on a Rental Property

Cap rate tells you what a property earns before any loan. Divide the net operating income, the rent you collect minus operating costs, by the price. A $300,000 rental with $15,720 of NOI has a cap rate of 5.24%.

Cap rate compares properties on equal terms. Cash on cash return shows what your own money earns once the mortgage is paid, so you need both before you buy. Want a benchmark? See what investors look for in a cap rate.

Quick answer

How do you calculate cash on cash return?

To calculate cash on cash return, divide your yearly cash flow after operating costs and mortgage payments by the cash you invested, then multiply by 100: $4,000 of cash flow on $80,000 invested is a 5% return.

  • Yearly Cash Flow: Take the rent you collect, subtract the operating costs, then subtract a full year of mortgage payments.
  • Cash You Put In: Add up your down payment, closing costs and any repairs you paid for up front.
  • Divide the Two: Cash flow divided by cash invested, times 100, is your cash on cash return.
  • Quick Example: $4,000 of yearly cash flow on $80,000 invested is a 5% cash on cash return.
Know your numbers

Rental Property Cash Flow: The Numbers That Matter

Each result answers a different question. Here's what the calculator shows you and how to use it:

  • Net Operating Income

    What the property earns after operating costs and before the mortgage. Lenders and buyers start here.

  • Cap Rate

    NOI divided by the price. Use it to compare properties no matter how they're financed.

  • Cash on Cash Return

    Your yearly cash flow divided by the cash you put in: what your own money earns.

  • Monthly Cash Flow

    What's left each month after every cost and the mortgage. A negative number means you pay in.

  • Debt Retirement

    How much of the loan your tenant's rent pays down each year, building your equity.

  • Appreciation

    How the value could grow at the rate you choose, year by year, measured against your outlay.

Before you buy

Investment Property Calculator: Before You Buy

Run the numbers before you make an offer. Change the price, the down payment or the rent and watch how far each one moves your return, then find the price where the deal works for you.

Once you own it, the same numbers become your scorecard. Rent collected on time, vacancies kept short and repairs kept in check are what turn a good projection into a good year.

Quick answer

What is a good cash on cash return on a rental?

A good cash on cash return depends on your goal. Income investors look for a higher figure, growth investors accept less in exchange for appreciation, and either way the number only counts if it includes vacancy, repairs and management.

  • It Depends on Your Goal: Income investors look for a higher figure, while growth investors accept less now in exchange for appreciation.
  • Compare It to Your Options: Weigh it against what the same cash could earn in other investments with similar risk.
  • Count Every Cost: A return that leaves out vacancy, repairs or management looks better on paper than it will in your bank account.
  • Look Past Year One: Equity from the loan payoff and appreciation add to your total return over the years you hold.

Need a rent figure you can trust? Get a free rent estimate before you run the numbers.

Get a free rent estimate
Free proposal

Get a Free Proposal to Protect Your Rental's Cash Flow

Own the rental already, or about to? Tell us about it and we'll send a free proposal showing how we'd fill it, collect the rent and keep your costs in check.

Want to know what the property can rent for first? Get a Rent Estimate.

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FAQs

Rental Property ROI Calculator FAQs

What is cash on cash return in real estate?

Cash on cash return measures the yearly cash a rental puts in your pocket against the cash you invested to buy it. It counts only your own money, the down payment, closing costs and up-front repairs, so it shows how hard that money works once the mortgage is paid. It leaves out equity from the loan payoff and appreciation.

What is a gross rent multiplier?

The gross rent multiplier is the price divided by the yearly gross rent. A $300,000 property that rents for $2,500 a month, $30,000 a year, has a gross rent multiplier of 10. A lower number means you pay less for each dollar of rent, but it ignores expenses, so use it to screen deals, not to decide.

How much rental income can I expect from a property?

Start with the market rent for similar homes nearby, then take off vacancy, the time the property may sit empty between tenants. What you keep depends on taxes, insurance, dues, repairs and management. For a number built on local market comps, ask for a free rent estimate and enter it in the calculator.

How does Royalty Concierge Services help protect a rental's cash flow?

Royalty Concierge Services protects the two numbers that drive your return: rent collected and costs. We price the rent from local market comps, list the property on the MLS, screen every applicant with 13 checks and collect the rent each month. Repairs need your approval except in a true emergency, we inspect in person on a regular basis, and you see every dollar on your monthly statement, with no hidden fees.

What is NOI in real estate?

NOI, net operating income, is the rent a property collects minus its operating costs, such as property taxes, insurance, association dues, maintenance and management. It leaves out the mortgage, so it shows what the property itself earns. Divide NOI by the price and you get the cap rate.

How do you calculate rental yield?

Gross rental yield is the yearly rent divided by the property's price, times 100. Net yield subtracts the operating costs first. A $2,500 monthly rent on a $300,000 property is a 10% gross yield; after $12,780 of yearly costs, the net yield on that price is 5.74%.

What goes into a rental property analysis?

A rental property analysis checks whether a property pays. It looks at the market rent, vacancy, every operating cost and the financing, then the results: cash flow, cap rate and cash on cash return. A full analysis also weighs the property's condition, the neighborhood and the rules that apply, such as association approvals and local permits.

Does Royalty Concierge Services manage rentals for out-of-state investors?

Yes. Many of the owners we serve live in other states or other countries. Royalty Concierge Services manages their rentals across Miami-Dade, Broward and Palm Beach, sends a statement every month, inspects each property in person on a regular basis and gets their approval before any repair, except in a true emergency.