Cap Rate and Cash-on-Cash Calculator
Two rental metrics that answer different questions.
Work out Cap Rate and Cash-on-Cash. Two rental metrics that answer different questions. Shows the number in today's money too.
Maintenance, insurance, management, void periods, property tax — everything except the mortgage.
Deposit plus fees plus any refurbishment.
Cap rate
7.80%
13.20% cash-on-cash · 550 a month
Cap rate and cash-on-cash answer different questions and get confused constantly. Cap rate measures the property against its full price and ignores financing entirely, so two buyers with different deposits see the same figure — it is a property metric. Cash-on-cash measures the return on the money you actually put in, so it moves with the mortgage — it is an investor metric. Gross yield ignores costs altogether and is the least useful of the three, though it is the one most often quoted in listings. None of these include capital growth, tax, or the risk that the property sits empty. Void periods are the expense most often left out of a spreadsheet and the one most likely to turn a thin margin negative.
How the Cap Rate and Cash-on-Cash Calculator works
Enter price, rent, running costs, cash invested and mortgage payments. Cap rate measures the property and ignores financing; cash-on-cash measures the return on the money you actually put in. Both are shown because they are constantly confused.
Also known as: cash on cash return calculator · rental property calculator · rental yield calculator · 1 percent rule calculator
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
What is cap rate?
Net operating income divided by purchase price. It ignores financing entirely, so two buyers with different deposits see the same cap rate — it describes the property, not the deal.
How is cash-on-cash different?
It divides annual cash flow, after mortgage payments, by the cash you actually invested. It moves with the financing, so the same property gives different answers to different buyers.
What is the 1% rule?
A screening shortcut: monthly rent of at least 1% of purchase price. It is a filter for which deals deserve a closer look, not an analysis — and in many markets almost nothing clears it.
What do these leave out?
Capital growth, tax, and void periods. Voids are the expense most often missing from a spreadsheet and the one most likely to turn a thin margin negative.
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