Real Estate ROI Calculator
Calculate your property investment's ROI, Cap Rate, Cash-on-Cash Return, and annual net income in seconds.
Key Real Estate Investment Metrics
- Cap Rate: Annual NOI ÷ Purchase Price. A rate of 5–10% is typically considered good for residential property.
- Cash-on-Cash Return: Annual cash flow after mortgage ÷ total cash invested (down payment + closing + rehab). Targets of 8–12% are common.
- NOI (Net Operating Income): Gross rent × (1 − vacancy rate) − operating expenses. Does not deduct mortgage.
- Gross Rent Multiplier (GRM): Purchase Price ÷ Annual Gross Rent. Lower is better; typically 4–8 for residential.
Frequently Asked Questions
What is a good cap rate?
Generally 5–10% for residential properties. Higher cap rates suggest more risk or lower-value markets; lower rates (3–5%) are typical in expensive urban markets with strong appreciation potential.
What is cash-on-cash return?
It measures the annual cash income on your actual cash invested (not the full purchase price). It accounts for financing costs and is better than cap rate for leveraged investments.
What should I include in operating expenses?
Property taxes, insurance, HOA fees, property management (typically 8–12% of rent), maintenance/repairs (budget 1% of property value annually), and any utilities you pay.
Should I include mortgage in the ROI calculation?
Cap rate and NOI exclude mortgage to measure property performance independently. Cash-on-cash return includes mortgage to reflect your actual cash situation.
Is this calculator free?
Yes — free, no account needed, and all calculations happen in your browser.