Real Estate Calculator
Adjust the inputs below. Results update as you type.
How it works
NOI = gross rental income − operating expenses (taxes, insurance, maintenance, vacancy). Cap rate = NOI / property value. Cash-on-cash = annual cash flow / cash invested. Cash flow = NOI − debt service. 1% rule: monthly rent ≥ 1% of purchase price for positive cash flow potential. Cap rates vary by market (3–4% gateway cities; 6–10% secondary markets). Don't ignore vacancy rate (typically 5–10%).
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
Investment returns combine cash flow (rent − expenses − mortgage) and appreciation. Cap rate = net operating income ÷ property value; cash-on-cash return = annual cash flow ÷ cash invested.
Worked example
A property with $24,000 annual rent and $9,000 of operating expenses has $15,000 NOI. At a $250,000 price that is a 6% cap rate.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
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Frequently asked questions
What is cap rate?+
Net operating income divided by property value — a quick measure of unleveraged return. Higher cap rates suggest more income relative to price (and often more risk).
What is cash-on-cash return?+
Annual pre-tax cash flow divided by the actual cash you invested, which captures the effect of leverage from a mortgage.
What expenses should I include?+
Taxes, insurance, maintenance, management, vacancy allowance, and repairs. Leaving these out makes a deal look better than it is.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.