Real Estate Calculator
Analyze a rental property investment: monthly cash flow, capitalization rate, cash-on-cash return and total ROI including appreciation.
How to use the Real Estate Calculator
- Enter your inputs into the Real Estate Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The key real estate metrics
Cap rate = NOI / Property price · · · Cash-on-cash = Annual cash flow / Cash invested · · · NOI = Rent − operating expenses (excludes mortgage)
Cap rate measures the property's yield without leverage. Cash-on-cash measures the return on actual cash invested (down payment + closing). Total ROI also includes principal paydown and appreciation.
Worked example
$300,000 property with $36,000 annual rent and $12,000 in operating expenses: NOI = $24,000; cap rate = 8.0%. With $75,000 down and a mortgage causing $5,000/year cash flow after debt service, cash-on-cash = 6.7%.
Frequently asked questions
What's a good cap rate?
Varies by market. Hot urban areas may price at 4–5% cap; smaller cities or higher-risk neighborhoods 7–10%+. Cap rate inversely correlates with appreciation potential.
Do I need to include vacancy in operating expenses?
Yes — most analysts use a 5–8% vacancy allowance on annual rent. Better to plan for some empty months than to assume 100% occupancy.
What is the 1% rule?
A quick screening rule: monthly rent should be at least 1% of purchase price. A $200,000 property should rent for $2,000+/month. Rarely achievable in hot coastal markets; common in the Midwest.