Real Estate ROI Calculator
Cash-on-cash & cap rate.
Run a rental property with realistic costs included — vacancy, management, maintenance, insurance, and taxes — and see the cash-on-cash return, cap rate, and monthly cash flow.
Enter your numbers to see the math.
What this calculator does
It models a financed rental purchase end to end: down payment and closing costs, the monthly mortgage, effective rent after vacancy and management, operating costs, and the resulting monthly cash flow, cap rate, and cash-on-cash return. It also flags the "1% rule" — which barely exists in most 2026 markets.
The formulas
where NOI (net operating income) is effective rent minus operating costs (tax, insurance, maintenance), and cash flow is NOI minus the mortgage payment.
Worked example
$300,000 property, 20% down, 7% 30-year loan. Rent $2,400, 5% vacancy, 8% management, $500 of monthly operating costs. The mortgage is about $1,597/month, monthly NOI about $1,588 — so the property is roughly break-even on cash flow, with a cap rate near 6.4%. The wealth builds through principal paydown and appreciation, not monthly cash.
Assumptions & limitations
- Uses your actual inputs for every cost line — but the real world will add surprise costs (a vacancy longer than expected, a capital repair).
- Appreciation is not modeled here; it is uncertain and should not be the reason you buy.
- Does not model depreciation, taxes, or 1031 exchanges — those are covered on the path page.
FAQ
What is a good cash-on-cash return?
What is a cap rate?
Why is my cash flow negative in this calculator?
See the full context: How to make a million through real estate investing →