Real Estate Calculator
Calculate real estate investment returns, cap rate, cash-on-cash return, and net operating income.
Input Parameters
Results
Key Real Estate Metrics
Cap Rate = NOI / Property Value. A good cap rate is typically 4-10% depending on location. Cash-on-Cash Return measures the annual pre-tax cash flow relative to the total cash invested.
What is the Real Estate Calculator?
The Real Estate Calculator evaluates the profitability of investment properties. It calculates Net Operating Income (NOI), Cash-on-Cash Return, and Capitalization Rates (Cap Rate) to determine if a property will generate passive income.
How It Works (Algorithm)
The tool analyzes the property's gross rental income and subtracts the heavy "operating expenses" (vacancy rates, property management fees, taxes, insurance, and maintenance). It then compares the resulting Net Income against the upfront down payment to determine your actual cash yield.
$$ \text{Cash on Cash Return} = \frac{\text{Annual Pre-Tax Cash Flow}}{\text{Total Cash Invested}} \times 100 $$
The primary metric used by real estate investors to gauge liquidity returns.
How to Use It
Enter the property's purchase price, your down payment, and mortgage details. Input the expected monthly rent. The tool will calculate the monthly mortgage, subtract all operating expenses, and output your expected Monthly Cash Flow.