Cap rate
Measures annual NOI divided by property value. It does not include debt.
Real Estate
Cap rate calculator
Calculate NOI, cap rate, cash flow, cash-on-cash return and break-even points for a rental property.
Annual breakdown
Debt is shown separately because it is not part of cap rate.
- Status
- Pending
Decision points
- Break-even rent
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- Maximum target price
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- Maximum vacancy
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Publicidad
How to read the result
The calculator separates operating returns, debt and initial equity so each metric has a clear role.
Cash flow
Subtracts debt payments from NOI to estimate the monthly or annual cash remaining.
Cash-on-cash
Compares annual cash flow with the initial equity invested.
Frequently asked questions
What is cap rate?
Cap rate is annual net operating income divided by property value. It helps compare properties’ operating returns without considering debt.
Does cap rate include a mortgage?
No. Cap rate uses NOI before debt. To see the mortgage's effect, review cash flow after debt and cash-on-cash return.
Which expenses are included in NOI?
NOI normally includes operating expenses such as property tax, insurance, management, maintenance, HOA fees and reserves. It excludes debt and personal taxes.
What is the difference between cap rate and gross yield?
Gross yield uses income before vacancy and expenses. Cap rate uses NOI, so it is usually lower and closer to actual operations.
What is cash-on-cash return?
It is annual cash flow divided by the initial equity invested. It is useful when the property is financed.
How do I calculate the minimum break-even rent?
The calculator estimates break-even rent using fixed expenses, variable expenses, vacancy, debt and other monthly income.