Real Estate Investment Analyzer

Cap rate, cash-on-cash return and a full-hold internal rate of return for a rental property, financing, appreciation and exit costs all included.

Reading This Tool

How To Use This Calculator

Enter the purchase price and financing terms, then the rent and operating costs you expect.

Cap rate measures the property's return ignoring financing, useful for comparing deals apples-to-apples. Cash-on-cash measures the return on the actual cash you put in, financing included. The IRR ties it all together across your full holding period, rental income plus the eventual sale, net of remaining mortgage and selling costs.

Your Inputs

Purchase Price $500,000

Down Payment 20%

Mortgage Interest Rate 5.5%

Amortization

Monthly Gross Rent $3,000

Vacancy Rate 5%

Operating Expense Ratio 35%

Annual Appreciation Rate 3.0%

Holding Period 10 yrs

Selling Costs 6%

Operating expense ratio covers property tax, insurance, maintenance and management, as a share of effective gross income, before debt service. Net operating income is assumed to grow with the appreciation rate over the holding period.

Year-One Snapshot

Monthly Mortgage Payment

Net Operating Income

Cap Rate

0.0%

Cash-on-Cash Return

0.0%

Projected IRR Over Full Hold

0.0%

Annual Cash Flow Before Tax, Over The Hold

Cash Flow Before Tax

Ignores income tax, capital cost allowance, closing costs on purchase, and any capital expenditures beyond routine operating costs. Rent and expense growth are simplified to track the appreciation rate uniformly, real properties rarely move in perfect lockstep.

Rental income needs to be filed correctly too.

See Our T1 Rental Filing Pricing →