Cap Rate & ROI Calculator

Calculate capitalization rate and simple cash-on-cash ROI for a rental property.

Property & financing

Purchase price ($)

Down payment ($)

Annual rent ($)

Vacancy rate (%)

Property tax ($/yr)

Insurance ($/yr)

Maintenance ($/yr)

Other expenses ($/yr)

Interest rate (%)

Loan term (years)

Cap rate & ROI

4.44% cap

NOI: $17,760
Effective income: $27,360
Operating expenses: $9,600
Annual debt service: $24,271
Cap rate: 4.44%
Cash-on-cash ROI (year 1): -8.14%

Combine cap rate and cash-on-cash ROI

This calculator blends traditional cap rate with first-year cash-on-cash ROI by layering financing costs on top of NOI. It shows how leverage, interest rates, and down payment size impact actual investor returns compared to the unlevered cap rate.

Use it when evaluating loan options, comparing all-cash purchases to financed deals, or presenting investment opportunities to partners. The tool helps clarify how much of the return comes from property performance versus financing structure.