Real Estate Investment Calculator

Analyze rental property investments with cap rate, cash-on-cash return, and cash flow projections. Make informed real estate investment decisions.

Investment Summary

Monthly Cash Flow

-$22

Negative cash flow

Cash-on-Cash Return

-0.31%

Annual return on investment

Cap Rate5.90%
DSCR0.99
5-Year ROI60.3%

Property Details

$300,000
50,0002,000,000
$2,500
50020,000

1% Rule: Rent should be ≥ $3,000/month (✗ Below rule)

Financing

25% ($75,000)
0100
7%
312
3% ($9,000)
16

Loan Amount

$225,000

Monthly Mortgage (P&I)

$1,497

Operating Expenses

1.2%
0.53
1%
03
8%
015
5%
020

Cash Flow Analysis

Gross Rental Income$2,500
- Vacancy (5%)-$125
= Effective Rental Income$2,375
- Operating Expenses-$900
= Net Operating Income (NOI)$1,475
- Mortgage Payment-$1,497
= Monthly Cash Flow-$22

Key Investment Metrics

5.90%

Cap Rate

-0.31%

Cash-on-Cash

10.0

GRM

0.99

DSCR

Break-Even Occupancy

95.9%

Total Cash Investment

$84,000

5-Year Projection

3%/year
010

5-Year Appreciation

$47,782

5-Year Equity

$135,986

5-Year Total Return

$50,617

5-Year ROI

60.3%

Investment Summary

Monthly Cash Flow

-$22

Negative cash flow

Cash-on-Cash Return

-0.31%

Annual return on investment

Cap Rate5.90%
DSCR0.99
5-Year ROI60.3%

Quick Answer

Real estate investment analysis includes: Cap Rate = NOI / Property Value, Cash-on-Cash = Annual Cash Flow / Cash Invested, ROI = Total Return / Total Investment. Our calculator provides comprehensive property analysis.

Key Facts

  • Cap rate = Net Operating Income / Property Value
  • Cash-on-cash return = Cash Flow / Cash Invested
  • Good cap rate varies by market (4-10%)
  • Include all expenses in NOI calculation
  • Leverage amplifies returns and risks
  • Consider appreciation and tax benefits

Frequently Asked Questions

Cap rate (capitalization rate) measures a property's potential return based on NOI (Net Operating Income) divided by purchase price. A 6% cap rate means the property generates 6% of its value annually before mortgage. Higher cap rates indicate higher potential returns but often higher risk.
Cash-on-cash return measures annual cash flow divided by total cash invested (down payment + closing costs). It shows the actual return on your invested capital. A 10% cash-on-cash return means you earn $10,000 annually on a $100,000 investment.
The 1% rule is a quick screening tool: monthly rent should be at least 1% of purchase price. A $200,000 property should rent for $2,000+/month. Properties meeting this rule often cash flow well, but it's just a starting point for analysis.
DSCR measures ability to cover mortgage payments with NOI. DSCR = NOI ÷ Annual Mortgage Payment. Lenders typically require 1.2-1.25 minimum. A 1.25 DSCR means NOI is 25% higher than mortgage payments, providing a safety cushion.
Key expenses: Property taxes (varies by location), insurance (0.5-1% of value), maintenance/repairs (1-2% of value for reserves), property management (8-10% of rent if hired), vacancy (5-10% of rent), utilities (if included), and HOA fees if applicable.