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Real Estate Calculator

Calculate cap rate, annual cash flow and cash-on-cash return for an income property.

Result

Cap rate
7%
Annual cash flow
$1,839.29
Cash-on-cash return
3.07%
Net operating income
$21,000.00
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From operating income to cash flow (annual)

From operating income to cash flow (annual)$50,000.00$37,500.00$25,000.00$12,500.00$0.00Net operating incomeDebt serviceCash flow

The three metrics that matter

Investors size up an income property with a small set of numbers, and this calculator produces the core three. Net operating income (NOI) is the property’s gross rent minus its operating expenses, before any mortgage. The capitalization rate is NOI divided by the price — a financing-blind measure of yield that lets you compare deals on a like-for-like basis.

Cash flow then subtracts the annual mortgage payments from NOI to show what actually lands in your pocket. Cash-on-cash return divides that cash flow by the cash you invested (the down payment), measuring how hard your own money is working.

Reading the income waterfall

The chart traces the path from income to take-home. Net operating income is the rent left after expenses; debt service is the slice the lender takes; cash flow is what remains.

Seeing the three side by side makes the role of financing obvious. A property can have a healthy NOI and a respectable cap rate yet still produce thin or negative cash flow once a large mortgage payment is subtracted — a common trap when buying with heavy leverage at high rates.

Putting the numbers in context

No single figure tells the whole story; read them together.

  • Cap rate ignores your loan, so it reflects the asset itself; many investors target 5–10%, varying by market and risk.
  • Cash-on-cash captures the effect of leverage and is what you actually feel month to month.
  • A higher cap rate often signals higher risk or a softer location, not simply a better deal.
  • NOI here uses your expense estimate — understate expenses and every downstream number looks rosier than reality.

Limitations

This is a snapshot at today’s rent and expenses. It does not model vacancy, capital expenditures, rent growth, tax effects, or eventual sale proceeds. Build conservative expense and vacancy assumptions before committing capital. This is general information, not investment advice.

Formula

NOI = rent − expenses; capRate = NOI/price; cashFlow = NOI − annual debt service; cashOnCash = cashFlow/down

Frequently asked questions

What is a good cap rate?
It varies by market, but many investors look for 5–10%. A higher cap rate means more income relative to price, though often with more risk.