Real Estate Investment Calculator
Estimate cap rate, cash-on-cash return and monthly cash flow on a rental property from price, financing, rent and expenses.
Example
A $300,000 rental with 20% down ($60,000), a $240,000 loan at 6.5% over 30 years, and $2,500/mo rent.
Operating expenses (5% vacancy, 5% maintenance, 8% management, 1.1% property tax, $1,200 insurance) total about $9,900/yr, so net operating income is $20,100/yr and the cap rate is 6.70%.
Mortgage P&I is $1,516.96/mo, leaving monthly cash flow of about $158 ($1,896/yr). With $9,000 closing costs, total cash invested is $69,000, giving a cash-on-cash return of 2.75%.
How it works
Enter the purchase price, down payment, loan terms, monthly rent and operating expenses, then read the cap rate, cash-on-cash return and cash flow instantly. Cap rate uses net operating income (excluding the mortgage); cash-on-cash divides annual after-debt cash flow by total cash invested.
Good to know
This Real Estate Investment Calculator turns a rental property's basic numbers into the three metrics investors actually compare deals on: capitalization rate, cash-on-cash return, and monthly cash flow. You enter the purchase price, down payment, loan rate and term, expected rent, closing costs, and a breakdown of operating expenses, and it instantly shows whether the property pays for itself after the mortgage and what return you'd earn on the cash you put in. It's built for first-time landlords, house hackers, and anyone screening listings before committing to a deeper underwriting spreadsheet.
Reach for it when you're triaging properties and want a fast yes/no/maybe rather than a polished pro forma. Because vacancy, maintenance, management, and other costs are separate inputs, you can stress-test a deal by nudging assumptions, for example raising the interest rate or dropping the down payment, and watch cash flow swing in real time. The horizontal bars are the quickest read: they show rent collected versus operating expenses versus the mortgage payment side by side, so you can see at a glance which line is eating your margin.
Interpret the outputs as a pair, not in isolation. Cap rate ignores your loan and describes the property on its own merits, while cash-on-cash and monthly cash flow reflect your specific financing, so a property can show a respectable cap rate yet still bleed cash each month if it's heavily leveraged. Negative monthly cash flow means rent isn't covering the mortgage plus expenses; a low cash-on-cash figure means your invested cash is working slowly even if the deal breaks even.
One important caveat: the tool deliberately leaves out income taxes, appreciation, and the principal you pay down each month, so it understates total return on a buy-and-hold property and isn't a complete picture of profit. Treat its expense percentages as placeholders too, since real vacancy, repair, and management costs vary widely by market and property age; plug in figures from comparable local rentals before trusting the result.
Frequently asked questions
What is the difference between cap rate and cash-on-cash return?
Cap rate is net operating income divided by purchase price and ignores your loan, so it measures the property itself. Cash-on-cash return divides annual cash flow after the mortgage payment by the cash you actually invested (down payment plus closing costs), so it measures your leveraged return.
Why is my cash flow negative even with a high cap rate?
Cap rate excludes financing. A strong cap rate can still produce negative monthly cash flow if the mortgage payment plus operating expenses exceeds the rent, which often happens with a low down payment or high interest rate. Try increasing the down payment or rent to see the effect.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What is a good cap rate for a rental property?
There's no universal threshold; cap rates commonly range from roughly 4% to 10% depending on the market, property class, and risk, with lower rates in expensive, stable areas and higher rates where rents are riskier. A good cap rate is one that fairly compensates you for the property's risk relative to other local deals.
How do you calculate cash flow on a rental property?
Subtract all operating expenses (vacancy, maintenance, management, taxes, insurance, and other costs) and the mortgage principal and interest payment from the rent collected. What remains is your cash flow, expressed here per month and per year.
Does a higher down payment improve cash-on-cash return?
Not necessarily. A larger down payment lowers the mortgage payment and boosts monthly cash flow, but it also increases the cash you invested, so cash-on-cash return can fall even as cash flow rises. The calculator lets you test both effects at once.
What expenses should I include when analyzing a rental?
Common operating expenses are property taxes, insurance, a vacancy allowance, ongoing maintenance and repairs, property management fees, and any other recurring costs such as HOA dues or utilities. The mortgage payment is handled separately because it is financing, not an operating cost.
What is net operating income (NOI)?
Net operating income is annual rental income minus all operating expenses, but before any mortgage payment, income taxes, or capital costs. It is the figure used to compute cap rate and is meant to describe the property independent of how it's financed.
Why is cap rate calculated without the mortgage?
Cap rate intentionally excludes financing so it measures the property's performance on its own, allowing apples-to-apples comparison between properties regardless of how each buyer pays for them. Financing-specific returns are captured separately by cash-on-cash return.
Is cash-on-cash return the same as total return?
No. Cash-on-cash return only measures annual cash flow against the cash you invested and ignores mortgage principal paydown, property appreciation, and tax effects. Total return on a buy-and-hold rental is typically higher once those factors are included.
What is the 1% rule in real estate investing?
The 1% rule is a quick screen suggesting a rental's monthly rent should be at least 1% of its purchase price. It's a rough filter, not a substitute for a full cash flow analysis, and is harder to meet in high-priced markets.
Related calculators