Investor calculators
Rental property and cap rate calculator
Your results
- Gross yield
- 12.1%
- Cap rate
- 7.3%
- Monthly cash flow
- $505
- Cash-on-cash return
- 4.8%
Where the gross rent goes
- Vacancy 5%
- Taxes 18%
- Insurance 5%
- Management 8%
- Repairs and reserves 5%
- Debt service 50%
- Cash flow 11%
| Gross annual rent | $56,760 |
|---|---|
| Vacancy allowance | -$2,838 |
| Effective income | $53,922 |
| Operating costs | -$19,720 |
| Net operating income | $34,202 |
| Annual debt service | -$28,142 |
| Annual cash flow | $6,060 |
| Cash invested (down plus closing) | $126,900 |
| Monthly payment (principal and interest) | $2,345 |
| Debt service coverage | 1.22x |
Have Marques review these numbers
Everything runs in your browser. Nothing you enter is stored or sent. Results are estimates for comparison only and are not financial, tax or legal advice.
How to read the results
Each measure answers a different question. Gross yield tells you whether a property is worth a closer look. Cap rate tells you how the property performs on its own. Cash flow and cash-on-cash tell you how it performs with your financing.
The default figures are illustrative assumptions, not recommendations. Replace the vacancy, management, repairs and financing inputs with your own, and confirm taxes with the appraisal district and insurance with a quote for the specific property.
To compare the current portfolio side by side, open any property from the portfolio and choose Run the numbers.
- Gross yield
- Gross annual rent divided by the purchase price, before any vacancy or expense. It is the quickest screen, and the figure shown on every portfolio card.
- Net operating income (NOI)
- Rent actually collected, after the vacancy allowance, minus operating costs: taxes, insurance, management, repairs and reserves, and any HOA or owner-paid utilities. Debt payments are not operating costs.
- Cap rate
- NOI divided by the purchase price. It compares properties as if each were bought for cash, so financing does not distort the comparison.
- Cash flow
- NOI minus annual debt service (principal and interest). This is what the property pays you after it pays its costs and its loan.
- Cash-on-cash return
- Annual cash flow divided by the cash you put in: the down payment plus closing costs. It measures the return on your own capital in the first year.
- Debt service coverage
- NOI divided by annual debt service. Lenders on investment property look at this ratio, and a figure above 1.0 means the property's income covers its loan payments.
Investment disclaimer. All figures are estimates supplied by sellers and builders, are not guaranteed and may change without notice. Nothing on this site is financial, tax or legal advice. Buyers should independently verify all information before purchasing.
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