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.

Finance

↵ to calculate

Real Estate Calculator - ROI Cap Rate Cash Flow Online

Analyze a rental property investment with monthly cash flow, cap rate, and cash-on-cash return calculations.

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How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🌱 When you save money in a bank, the bank gives you a small gift (called interest) for keeping it there. Then next year, you get a gift on your gift too! This tool shows how much your money will grow over time.

📌 Direct Answer & Summary

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.

Property Value ($)

Down Payment (%)

Annual Rental Income ($)

Annual Expenses ($)

Mortgage Rate (%)

Loan Term (years)

What is Real Estate Calculator - ROI Cap Rate Cash Flow Online?

How to use it

1️⃣ Enter the property value and your down payment percentage.
2️⃣ Enter the annual gross rental income.
3️⃣ Enter annual operating expenses (taxes, insurance, maintenance, management fees).
4️⃣ Enter the mortgage rate and loan term for financing.
5️⃣ Review monthly cash flow, cap rate, and cash-on-cash return.

Formula

Monthly Cash Flow = Rental Income/12 − Monthly Mortgage − Annual Expenses/12. Cap Rate = NOI / Property Value × 100. Cash-on-Cash = Annual Cash Flow / Total Cash Invested × 100. NOI = Annual Rent − Annual Expenses.

💡 See it in action — a real example

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%.

❓ Common 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.

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