Investment Property Calculator
Analyze potential rental properties with cash flow projections, cap rates, and return on investment calculations.
Investment Calculator
Analyze cash flow, cap rate, and cash-on-cash return
Purchase Details
Loan Details
Monthly Income
Annual Expenses
Investment Analysis
Annual: $-8,070
Cap Rate
3.7%
NOI / Purchase Price
Cash-on-Cash Return
-8.2%
Cash Flow / Cash Invested
Total Cash Required
$98,000
Down + Closing + Rehab
1% Rule
0.70%
Below 1% rule
*This calculator provides estimates only. Consult with financial advisors before making investment decisions.
Understanding the Metrics
Cap Rate (Capitalization Rate)
Net Operating Income divided by purchase price. A higher cap rate indicates potentially higher returns but may also indicate higher risk. Typical ranges: 4-10%.
Cash-on-Cash Return
Annual cash flow divided by total cash invested. This shows the return on your actual cash investment, accounting for financing. Target: 8-12% or higher.
The 1% Rule
Monthly rent should be at least 1% of the purchase price. While not a guarantee of a good investment, it's a quick screening tool.
Gross Rent Multiplier (GRM)
Purchase price divided by annual gross rent. Lower GRM = fewer years to recover purchase price through rent. Typical ranges: 4-8.
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