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Real Estate Cap Rate Analyzer.

Analyze property investments with cap rate, cash flow, and ROI metrics

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01

Set your values

Results update as you type.

ℹī¸ Investment Analysis Tool

This calculator is for educational purposes only. Not financial advice. Consult with a real estate professional or financial advisor for investment decisions.

Purchase & Financing

500000.0$
500005000000
100000.0$
0500000
6.5%
212
30.0years
540

Income

36000.0$
1000500000
5.0%
050

Annual Expenses

6000.0$
0100000
1200.0$
050000
2400.0$
0100000
1200.0$
050000
0.0$
050000

Analysis Results

Cap Rate

4.68%

Net Operating Income / Purchase Price

Cash-on-Cash Return

-6.94%

Annual Cash Flow / Down Payment

Monthly Net Cash Flow

-578.27$

Negative monthly cash flow

Annual Net Cash Flow

-6939.27$

Negative annual cash flow

Debt Service Coverage Ratio

0.77x

NOI / Annual Debt Service

Gross Rent Multiplier

13.89x

Purchase Price / Annual Rent

Monthly Mortgage

2528.27$

Principal & Interest

Monthly Expenses

900$

Taxes, Insurance, Maintenance, etc.

Net Operating Income

23400$

Annual Income - Operating Expenses

Use Cases

Assess refinancing or loan options

Input different loan terms, interest rates, and down payments to see how they affect your cash flow and DSCR. This can guide you in choosing a financing structure that maximizes returns.

Example: Test a 15-year vs. 30-year mortgage to see which yields better monthly cash flow.

Frequently Asked Questions

What is a cap rate and how is it calculated?
Cap rate (capitalization rate) measures the return on a real estate investment based on the net operating income (NOI) it generates. It is calculated by dividing the NOI by the property's current market value or purchase price. A higher cap rate indicates a higher potential return but may also imply higher risk.
How does the calculator determine cash flow?
Cash flow is the amount of money left after all operating expenses and debt service (mortgage payments) are deducted from the rental income. The calculator uses the inputs you provide for income, expenses, and financing to estimate the annual or monthly cash flow.
What is debt service coverage ratio (DSCR) and why is it important?
DSCR is a measure of a property's ability to cover its debt obligations. It is calculated by dividing the net operating income by the total debt service. Lenders often use DSCR to assess loan risk; a ratio above 1 indicates the property generates enough income to cover its debt payments.

Tips & Common Mistakes

Tips

  • Ensure your net operating income (NOI) is accurate by including all income sources (rent, parking, laundry) and all operating expenses (maintenance, property taxes, insurance, vacancy allowance).
  • Use a conservative vacancy rate (e.g., 5-10%) to account for periods without tenants, which will give you a more realistic cash flow projection.
  • Compare cap rates of similar properties in the same market to gauge whether a property is overpriced or a good deal.
  • Remember that cap rate does not account for financing; use cash flow and DSCR to evaluate the impact of your mortgage.

Common Mistakes to Avoid

  • Forgetting to include all operating expenses, such as property management fees, repairs, and capital expenditures, which can significantly reduce net operating income.
  • Using the purchase price instead of the current market value when calculating cap rate, especially if the property has appreciated or depreciated.
  • Ignoring the effect of loan terms on cash flow; a lower interest rate or longer amortization can improve cash flow but may increase total interest paid.

Last updated: August 13, 2026