What is a good cap rate?

Typically 5–8% for residential rentals — higher means more income relative to price but often more risk or a worse location. Compare against local alternatives, not a universal number.

Cap rate vs cash-on-cash return — what’s the difference?

Cap rate measures the property’s unlevered income yield (NOI ÷ price). Cash-on-cash measures your actual yearly cash profit against the cash you invested, after financing costs.

A quick screen: monthly rent should be at least 1% of the purchase price (e.g. $2,000 rent on a $200,000 property). It is a starting filter, not a guarantee of profitability.

Rental Property Calculator

Run the numbers on a rental property: gross rental income with vacancy and management fees, recurring operating expenses, net operating income (NOI), cap rate, debt service, annual cash flow, cash-on-cash return, and your total profit and IRR including appreciation and sale costs.

#rental property#cap rate#cash on cash return#noi#rental income

Live calculate

Presets

Purchase Price

Use Loan?

YesNo (all cash)

Down Payment

Interest Rate

Loan Term

years

Closing Cost

Need Repairs / Renovation?

Repair Costs

Monthly Rent

Other Monthly Income

$/month

Parking, laundry, storage, fees.

Rent Annual Increase

% / year

Vacancy Rate

Management Fee

% of rent

Property Tax

$/year

Total Insurance

$/year

HOA Fee

$/year

Maintenance

$/year

Other Costs

$/year

Expense Annual Increase

% / year

Do You Know the Sell Price?

No — appreciate itYes

Sell Price

Value Appreciation

% / year

Holding Length

years

Cost to Sell

Live mode: results update as you type.

Cash-on-Cash Return (Year 1)

9.98%

Cap rate 8.05% · Year-1 cash flow $4,589 · IRR 18.42%

Year 1 Snapshot

Gross Rental Income: $24,000
Vacancy + Management: − $1,200
Operating Expenses: − $6,700
Net Operating Income (NOI): $16,100
Cap Rate (NOI ÷ Price): 8.05%
Annual Debt Service: − $11,511
Year-1 Cash Flow: $4,589
Total Cash Invested: $46,000
Cash Flow Over 20 yrs: $202,386
Sale Value in 20 yrs: $361,222
Net Proceeds at Sale: $245,919
Total Profit & IRR: $402,304 · IRR 18.42%

Year-1 gross income allocation

Operating Expenses$6,700
Vacancy + Mgmt$1,200
Debt Service$11,511
Cash Flow$4,589

Yearly cash flow projection

Year	Rental Income	Expenses	NOI	Debt Service	Cash Flow	Cash-on-Cash	Loan Balance
Year 1	$24,000	$7,900	$16,100	$11,511	$4,589	10.0%	$158,035
Year 2	$24,720	$8,137	$16,583	$11,511	$5,072	11.0%	$155,949
Year 3	$25,462	$8,381	$17,080	$11,511	$5,569	12.1%	$153,735
Year 4	$26,225	$8,633	$17,593	$11,511	$6,082	13.2%	$151,383
Year 5	$27,012	$8,892	$18,121	$11,511	$6,609	14.4%	$148,887
Year 6	$27,823	$9,158	$18,664	$11,511	$7,153	15.5%	$146,237
Year 7	$28,657	$9,433	$19,224	$11,511	$7,713	16.8%	$143,423
Year 8	$29,517	$9,716	$19,801	$11,511	$8,290	18.0%	$140,436
Year 9	$30,402	$10,007	$20,395	$11,511	$8,884	19.3%	$137,264
Year 10	$31,315	$10,308	$21,007	$11,511	$9,495	20.6%	$133,897
Year 11	$32,254	$10,617	$21,637	$11,511	$10,126	22.0%	$130,322
Year 12	$33,222	$10,935	$22,286	$11,511	$10,775	23.4%	$126,527
Year 13	$34,218	$11,264	$22,955	$11,511	$11,443	24.9%	$122,498
Year 14	$35,245	$11,601	$23,643	$11,511	$12,132	26.4%	$118,220
Year 15	$36,302	$11,949	$24,353	$11,511	$12,841	27.9%	$113,678
Year 16	$37,391	$12,308	$25,083	$11,511	$13,572	29.5%	$108,856
Year 17	$38,513	$12,677	$25,836	$11,511	$14,324	31.1%	$103,737
Year 18	$39,668	$13,057	$26,611	$11,511	$15,099	32.8%	$98,302
Year 19	$40,858	$13,449	$27,409	$11,511	$15,898	34.6%	$92,532
Year 20	$42,084	$13,853	$28,231	$11,511	$16,720	36.3%	$86,406

Rules of thumb: the 1% rule wants monthly rent ≥ 1% of purchase price ($2,000 here — yours is 1.00%); cap rates of 5–8% are common in balanced markets; always stress-test vacancy and maintenance before buying. Taxes and depreciation will change after-tax returns.

Most useful next

Formula

NOI = Gross Income − Vacancy − Management − Operating Expenses; Cap Rate = NOI ÷ Price; CoC = Cash Flow ÷ Cash Invested

Pro tips

• Underwrite 5–10% vacancy even in hot markets — one turnover can erase a year of profit.
• Positive cash flow is not the whole story: appreciation, principal paydown and tax benefits add to IRR.
• Local taxes, insurance and HOA rules vary enormously — verify every expense figure with actual quotes.

FAQ

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Rental Property Calculator

#rental property#cap rate#cash on cash return#noi#rental income

Year

Rental Income

Expenses

NOI

Debt Service

Cash Flow

Cash-on-Cash

Loan Balance

Year 1

$24,000

$7,900

$16,100

$11,511

$4,589

10.0%

$158,035

Year 2

$24,720

$8,137

$16,583

$11,511

$5,072

11.0%

$155,949

Year 3

$25,462

$8,381

$17,080

$11,511

$5,569

12.1%

$153,735

Year 4

$26,225

$8,633

$17,593

$11,511

$6,082

13.2%

$151,383

Year 5

$27,012

$8,892

$18,121

$11,511

$6,609

14.4%

$148,887

Year 6

$27,823

$9,158

$18,664

$11,511

$7,153

15.5%

$146,237

Year 7

$28,657

$9,433

$19,224

$11,511

$7,713

16.8%

$143,423

Year 8

$29,517

$9,716

$19,801

$11,511

$8,290

18.0%

$140,436

Year 9

$30,402

$10,007

$20,395

$11,511

$8,884

19.3%

$137,264

Year 10

$31,315

$10,308

$21,007

$11,511

$9,495

20.6%

$133,897

Year 11

$32,254

$10,617

$21,637

$11,511

$10,126

22.0%

$130,322

Year 12

$33,222

$10,935

$22,286

$11,511

$10,775

23.4%

$126,527

Year 13

$34,218

$11,264

$22,955

$11,511

$11,443

24.9%

$122,498

Year 14

$35,245

$11,601

$23,643

$11,511

$12,132

26.4%

$118,220

Year 15

$36,302

$11,949

$24,353

$11,511

$12,841

27.9%

$113,678

Year 16

$37,391

$12,308

$25,083

$11,511

$13,572

29.5%

$108,856

Year 17

$38,513

$12,677

$25,836

$11,511

$14,324

31.1%

$103,737

Year 18

$39,668

$13,057

$26,611

$11,511

$15,099

32.8%

$98,302

Year 19

$40,858

$13,449

$27,409

$11,511

$15,898

34.6%

$92,532

Year 20

$42,084

$13,853

$28,231

$11,511

$16,720

36.3%

$86,406

Pro tips

• Underwrite 5–10% vacancy even in hot markets — one turnover can erase a year of profit.

• Positive cash flow is not the whole story: appreciation, principal paydown and tax benefits add to IRR.

• Local taxes, insurance and HOA rules vary enormously — verify every expense figure with actual quotes.

Year 1 Snapshot

Year-1 gross income allocation

Yearly cash flow projection

Formula

Pro tips

FAQ

What is a good cap rate?

Cap rate vs cash-on-cash return — what’s the difference?

What is the 1% rule?

Related Calculators

ROI Calculator

IRR Calculator

Mortgage Calculator

Real Estate Calculator

Year 1 Snapshot

Year-1 gross income allocation

Yearly cash flow projection

Formula

Pro tips

FAQ

What is a good cap rate?

Cap rate vs cash-on-cash return — what’s the difference?

What is the 1% rule?

Related Calculators

ROI Calculator

IRR Calculator

Mortgage Calculator

Real Estate Calculator