Rental Property Calculator – Income and Cap Rate
Estimate annual operating income, cap rate and cash after debt payments from your assumptions.
Formula
NOI = 12×rent×(1−vacancy%) − expenses; cap rate = NOI/value; cash = NOI−debt service.
Annual net operating income ≈ 12×(1,800)×(1-(5)÷100)-(6,000) · Capitalization rate ≈ 100×(14,520)÷(200,000) · Annual cash after debt service ≈ (14,520)-(9,000)
How to use
- Enter property value and monthly potential rent.
- Enter vacancy, annual operating costs and debt service.
- Review income, cap rate and annual cash.
Examples
- Rent 1000/month, 10% vacancy, costs 2800/year, value 100000: NOI 8000 and cap rate 8%.
Frequently asked questions
What belongs in operating costs?
Include property tax, insurance, repairs and management; exclude debt service and depreciation.
Are tax rates or market rents supplied?
No. Enter all amounts and vacancy assumptions yourself.
Is this total investment return?
No. Sale proceeds, appreciation, capital works and income tax are excluded.
Sources
Updated: