Rental property calculator
Calculate rental property cash flow, NOI, cap rate, cash-on-cash return, and debt coverage. Adjust financing, vacancy, expenses, and reserves. Free, no signup.
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Cap rate calculator
Compare a property’s annual operating income with its price or value. Enter annual income and expenses to see its cap rate before financing. No signup required.
Run your numbers.
Example values are filled in to get you started. Results update as you change the inputs.
How the math works.
| Measure | Formula |
|---|---|
| Effective annual income | Annual rent × (1 − vacancy %) + other annual income |
| Net operating income | Effective annual income − annual operating expenses |
| Capitalization rate | Annual NOI ÷ property price or value × 100 |
- All income and expense inputs are annual amounts in US dollars. Use the same period and a consistent expense definition when comparing properties.
- This calculator excludes financing and capital reserves from NOI. A cap rate is not your cash-on-cash return, total return, or a forecast of appreciation.
- At $300,000 of value and $23,400 of annual NOI, the example cap rate is 7.80%. Changing financing alone does not change that cap rate.
Further reading: OCC: income property lending and direct capitalization.
Common questions
What is a good cap rate?
There is no universal target. Compare similar properties in the same market and consider condition, lease quality, expected repairs, vacancy, and the reliability of the income. A higher cap rate can reflect higher risk.
Should I use asking price or current value?
Use the proposed purchase price when evaluating an acquisition, or a supportable current value when reviewing a property you own. Label the basis consistently when comparing results.
Can a cap rate be negative?
Yes. If operating expenses exceed effective income, NOI is negative and so is the cap rate. Check that you have entered annual figures and have not included financing costs twice.
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ARV calculator
Estimate after repair value using comparable sales and square footage. Calculate an adjustable offer guideline with rehab and other costs. Free ARV calculator.
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