Cap RateCash-on-CashFull Breakdown
How It Works
1
Enter Purchase Details
Input price, down payment, and closing costs.
2
Add Income & Expenses
Enter rent, mortgage, taxes, insurance, and maintenance.
3
View Returns
See cap rate, cash-on-cash return, and cash flow.
Frequently Asked Questions
What is cap rate?
Cap rate (capitalization rate) is the Net Operating Income divided by the property purchase price, expressed as a percentage. It measures the return independent of financing.
What is cash-on-cash return?
Cash-on-cash return measures the annual pre-tax cash flow divided by the total cash invested (down payment + closing costs). It shows the return on your actual out-of-pocket investment.
What is a good cap rate for rental property?
A cap rate of 5-10% is generally considered good, but it varies by market. Higher cap rates indicate higher returns but may also indicate higher risk.
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