Real estate involves many different calculations. This page gives a quick investment property check (net operating income, cap rate, cash flow and cash-on-cash return) and points to the right real estate calculator for other needs.
| Net operating income (NOI) | $19,500.00/year |
| Capitalization rate | 6.50% |
| Gross rent multiplier | 10.00 |
| Yearly mortgage payments | $19,160.71 |
| Cash flow after mortgage | $339.29/year |
| Cash-on-cash return | 0.57% |
Financial: Mortgage Calculator for loan payments; House Affordability Calculator for how much home you can buy; Mortgage Payoff Calculator for extra payments; Refinance, FHA Loan, VA Mortgage, Home Equity Loan and HELOC Calculators for specific loans; Down Payment Calculator; Rent vs. Buy Calculator; Rental Property Calculator for a detailed investment analysis.
Measurement: Square Footage, Area, Concrete, Roofing, Tile, Mulch, Gravel and Stair Calculators help plan building and renovation projects.
Net operating income (NOI) is yearly rent after vacancy minus operating expenses, before mortgage payments. The capitalization (cap) rate is NOI ÷ price, a quick way to compare properties regardless of financing. Cash flow is NOI minus mortgage payments. Cash-on-cash return is yearly cash flow ÷ the cash you put in.
Worked example (defaults): $2,500 rent with 5% vacancy is $28,500 a year; minus $9,000 expenses gives an NOI of $19,500 and a cap rate of 6.5% on a $300,000 property.
For a home to live in, the most important numbers are the monthly payment including taxes and insurance, the down payment and closing costs, and your debt-to-income ratio. Lenders typically want housing costs under about 28% of gross income.
What is a good cap rate? Often 5–10%, depending on location and risk.
Does NOI include the mortgage? No.
What is the 1% rule? A quick screen that monthly rent should be at least 1% of the price.