Return before loan payments

Cap rate and maximum price from realistic rental income

Subtract vacancy and operating expenses, then work backward from your target cap rate.

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Calculate income and maximum price

Cap rate at purchase
—

Change an input to test the deal.

Yearly income after operating expenses (NOI)—
Maximum price at target cap—
Price gap—
Operating expenses as % of income—

Educational estimate only — not a loan offer, rate quote or lender approval. Full disclaimer

Formula

Yearly income after operating expenses ÷ purchase price

Change one assumption at a time. The result updates instantly so you can see which number actually breaks the deal.

Common mistake

Do not miss this

Mortgage payments are not an operating expense. Cap rate compares the property before financing.

Choose the next calculation

What are you trying to solve?

Rental Deal

Work backward to a maximum offer from cash flow and return targets.

Cash-on-Cash

Check the return on every dollar invested.

Cap Rate

Price the property from realistic income after expenses.

Quick answers

Frequently asked

How is this calculated?

Yearly income after operating expenses ÷ purchase price. Change one assumption at a time. The result updates instantly so you can see which number actually breaks the deal.

What's the most common mistake to avoid?

Mortgage payments are not an operating expense. Cap rate compares the property before financing.