Investment Property Calculator
An investment property can be an excellent investment. This calculator is designed to examine the potential return you might receive from an investment property.
How the investment property calculator works
It nets the effective rent (after vacancy) against expenses and the mortgage to find monthly cash flow, divides net operating income by price for the cap rate, and divides annual cash flow by the cash invested for the cash-on-cash return.
Worked example: with purchase price of $300,000, down payment of 25.00% and mortgage rate of 7.00%, the investment property calculator shows monthly cash flow of $83.07.
- Monthly cash flow
- $83.07
- Cap rate
- 6.32%
- Cash-on-cash return
- 1.33%
- Cash invested
- $75,000
The formula
Cap rate = annual NOI ÷ price. Cash-on-cash = annual cash flow ÷ cash invested. Cash flow = effective rent − expenses − mortgage.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the investment property calculator
What is a good cap rate?
It varies by market and property type, commonly 4–10%. A higher cap rate means more income relative to price, but often more risk or a less desirable location.
What is cash-on-cash return?
Your annual pre-tax cash flow divided by the actual cash you invested (down payment and costs). It measures the return on your money, accounting for financing.
Why does cash flow matter so much?
Negative cash flow means you subsidize the property every month, betting entirely on appreciation. Positive cash flow makes the investment self-sustaining and far less risky.
Is the Investment Property Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.