Enter the purchase, financing, rent and operating costs. Monthly cash flow, cap rate, cash-on-cash return and DSCR update as you type. The values below are example numbers.
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Cash flow is what is left each month after vacancy, operating costs and the mortgage payment. Cash flow = NOI − mortgage payment. Positive cash flow means the property pays for itself.
Cap rate compares net operating income to the purchase price and ignores financing. Cap rate = annual NOI ÷ price. It lets you compare properties as if each were bought with cash.
This is the yearly cash flow divided by the cash you put in. CoC = annual cash flow ÷ cash invested. Many investors look for 8% or more, though targets vary by market and risk.
Debt service coverage ratio is NOI divided by mortgage payments. DSCR = NOI ÷ debt service. Lenders of investor loans often want 1.20 to 1.25 or higher.
Many investors aim for at least $100 to $300 per door each month after all expenses and reserves. The right number depends on the market, the property type and how much risk you accept.
The 1% rule says monthly rent should be at least 1% of the purchase price. It is a quick screen, not a verdict. A property can pass and still lose money once taxes, insurance and repairs are counted.
Vacancy, repairs, capital reserves for roofs and appliances, and management fees. Leaving them out is the most common reason a deal looks better on paper than in practice.
This calculator gives estimates for education only and is not financial, tax or legal advice. Results depend on the numbers you enter. Check taxes, insurance quotes and local rules before you buy.