Investor return screen
Rental Property Calculator
Estimate NOI, cap rate, monthly cash flow, and cash-on-cash return before you treat a rental as a real deal. This calculator includes vacancy and debt service, so it is harder to fool yourself with top-line rent.
Cap rate ignores financing. Yearly cash return (cash-on-cash) includes financing impact. Compare both before deciding whether a property is cheap, leveraged, or simply risky.
What this calculator is good at
It separates the property from the financing. NOI and cap rate show the asset's operating yield. Cash flow and cash-on-cash return show what happens after the loan is added.
Where investors get misled
Rent alone is not a return. A property with high rent can still fail after vacancy, insurance, repairs, property tax resets, HOA dues, and debt service are included.
Core formulas
| Metric | Formula | Use |
|---|---|---|
| NOI | Effective rent - operating expenses | Property performance before debt. |
| Cap rate | Yearly income after operating expenses (NOI) / purchase price | Return before loan payments comparison. |
| Cash flow | NOI - debt service | Monthly investor income after financing. |
| Cash-on-cash | Annual cash flow / cash invested | Return on out-of-pocket capital. |
Next check
If cash flow is positive, check the DSCR calculator to see whether the same income supports lender coverage. If leverage is the issue, use the LTV calculator.
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What are you trying to solve?
Quick answers
Frequently asked
What is a good ROI for rental property?
Many investors screen for positive cash flow and cash-on-cash returns near 8% to 12%, but local risk, financing, repairs, and appreciation assumptions matter.
What is the difference between cap rate and cash-on-cash return?
Cap rate measures property yield before financing. Yearly cash return (cash-on-cash) measures annual cash flow against the cash invested.