Real Estate ROI Calculator
Analyze any rental property with cap rate, cash-on-cash return, monthly cash flow, and a 30-year equity vs cash flow projection. No sign-up required.
How It Works
Four metrics that matter for any rental property deal
Monthly Mortgage
Calculates your principal and interest payment based on loan amount, interest rate, and term length. This is your biggest fixed expense.
Net Cash Flow
Rental income minus all expenses including mortgage, tax, insurance, HOA, maintenance, and management. Positive means profit each month.
Cap Rate
Annual net operating income divided by purchase price. Measures the property's raw return regardless of financing. Compare across similar properties.
Frequently Asked Questions
Cap rate (capitalization rate) measures a property's annual net operating income as a percentage of its purchase price. It's calculated as Annual NOI divided by Purchase Price. A higher cap rate generally means higher return but potentially more risk. Most rental properties in stable markets range from 4% to 10%.
Cash-on-cash return measures the annual pre-tax cash flow relative to the total cash invested (down payment, closing costs, and any renovation costs). It's calculated as Annual Cash Flow divided by Total Cash Invested. Most real estate investors target 8% to 12% cash-on-cash returns.
Monthly cash flow equals total monthly rental income (after vacancy adjustment) minus all monthly expenses including mortgage payment, property tax, insurance, HOA, maintenance reserves, and property management fees. Positive cash flow means the property generates more income than expenses each month.
A good cap rate depends on the market and property type. In major metro areas, cap rates of 4% to 6% are common. In secondary markets, 6% to 8% is typical. Higher cap rates (8%+) often indicate more risk, older properties, or less desirable locations. The key is comparing cap rates of similar properties in the same market.
Yes. The tool calculates the monthly mortgage payment based on your purchase price, down payment, interest rate, and loan term. This payment is factored into the net cash flow calculation. Cap rate is calculated before debt service (unlevered), while cash-on-cash return considers your actual cash invested and financing costs.