Property ROI Calculator

How to use the Property ROI Calculator

1. 01
   Enter purchase price and down payment. Plus the loan rate, so we can estimate the mortgage on the financed portion.
2. 02
   Enter monthly rent. The gross rent you expect to collect.
3. 03
   Enter operating expenses. Taxes, insurance, maintenance, and property management — but not the mortgage.

How is it calculated?

Cap rate = annual net operating income (rent minus operating expenses, before financing) ÷ purchase price. Cash-on-cash return = annual cash flow after the mortgage ÷ the cash you actually invested (down payment + ~3% closing costs). Cap rate measures the property; cash-on-cash measures your leveraged return.