Real Estate Investment Calculator
Analyze a rental property investment with monthly cash flow, cap rate, and cash-on-cash return calculations.
Monthly Cash Flow
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Cap Rate
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Cash-on-Cash Return
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What is Real Estate Investment Calculator?
A real estate investment calculator evaluates the financial performance of a rental property by computing monthly cash flow, capitalization rate (cap rate), and cash-on-cash return. These three metrics together give you a clear picture of how much income a property generates relative to its price and your actual cash invested.
How to use
- 1 Enter the property value and your down payment percentage.
- 2 Enter the annual gross rental income.
- 3 Enter annual operating expenses (taxes, insurance, maintenance, management fees).
- 4 Enter the mortgage rate and loan term for financing.
- 5 Review monthly cash flow, cap rate, and cash-on-cash return.
Formula
Example calculation
Property $300,000, 20% down, $24,000/year rent, $6,000 expenses, 7% mortgage, 30 years: Monthly mortgage ≈ $1,596. Monthly cash flow ≈ $404. Cap rate ≈ 6%. Cash-on-cash ≈ 8.1%.
Frequently asked questions
What is a good cap rate?
Cap rates vary by market and property type. In high-cost urban markets, 3%–5% is typical. In secondary and tertiary markets, 6%–9% is common. Higher cap rates indicate higher yield but often higher risk or lower appreciation potential.
What is cash-on-cash return?
Cash-on-cash measures your annual cash income as a percentage of the cash you actually invested (down payment + closing costs). It's more relevant than cap rate for leveraged investments because it accounts for your financing costs.
What expenses should I include?
Common annual expenses: property taxes, insurance, property management (8%–12% of rent), maintenance/repairs (1%–2% of property value), vacancy allowance (5%–10% of rent), HOA fees. Mortgage principal and interest are handled separately.
What is a good cash-on-cash return?
Most investors target 8%–12% cash-on-cash. Below 6% is generally considered weak for a rental investment. Above 12% is excellent but may signal higher risk. Compare against alternative investments like REITs or index funds.
Does this account for appreciation?
No — this calculator shows income returns only. Appreciation can significantly boost total returns but is speculative and location-dependent. Prudent analysis evaluates cash flow on its own merits without relying on appreciation.