Property ROI & Cash-on-Cash Return Calculator
Cap rate, NOI, and cash-on-cash return for rental properties.
Open the Interactive CalculatorHow It's Calculated
NOI = (Monthly Rent × 12 × (1 − Vacancy Rate)) − Annual Operating Expenses.
Cap Rate = NOI ÷ (Purchase Price + Repairs).
Cash-on-Cash Return = (NOI − Annual Debt Service) ÷ Total Cash Invested.
Example
Example: a $300,000 property with $15,000 in repairs, renting for $2,500/month at 5% vacancy, nets an NOI of about $23,700 — a 7.5% cap rate. After debt service on a 75% loan at 6.5%, cash-on-cash return lands near 6–8% depending on financing.
Frequently Asked Questions
What is a "good" cap rate?
It varies by market, but 5–10% is a common target range for residential rentals; higher generally means more risk or a lower-priced market.
Is NOI the same as cash flow?
No — NOI excludes debt service (mortgage payments). Cash flow is NOI minus debt service.