Monthly Cash Flow: $450, Cap Rate: 6.72%, Cash-on-Cash: 10.80%
About Rental Property ROI Calculator
Rental Property Return on Investment (ROI) Calculator. Calculate cash flow, cap rate, and cash-on-cash return for an investment property. Starlightopia provides this tool completely free and online, optimized for instant, accurate computations.
How It's Calculated
How is Net Operating Income (NOI) calculated for a rental house?
NOI = Gross Rental Revenues - Total Operating Expenses (excluding mortgage principal and interest).
Technical Specifications
CategoryFinance
Target ValueReal Estate Return Metrics
Inputs Required (5)
Purchase Price ($) (number)
Down Payment ($) (number)
Gross Monthly Rent ($) (number)
Monthly Operating Expenses ($) (number)
Monthly Mortgage Payment ($) (number)
Frequently Asked Questions
What is a capitalization rate (cap rate) in real estate investment?
The cap rate is calculated by dividing the property's Net Operating Income (NOI) by its total purchase price, measuring profitability independent of financing options.
How is Net Operating Income (NOI) calculated for a rental house?
NOI = Gross Rental Revenues - Total Operating Expenses (excluding mortgage principal and interest).
What does a property's cash-on-cash return mean?
Cash-on-Cash Return = Annual Pre-Tax Cash Flow / Total Actual Out-of-Pocket Cash Invested, measuring the return on your physical down payment.
What are typical operational expenses for a rental property?
Operating costs include property taxes, landlord insurance premiums, regular maintenance budgets, property management fees, and vacancy reserves.
What is considered a good cap rate target for real estate buyers?
A good cap rate generally ranges between 5% and 10%, depending on the local market demand and property risk tier.