What is a good Cash-on-Cash (CoC) return?

Most real estate investors aim for an 8% to 12% Cash-on-Cash return. Anything above 12% is generally considered an exceptional deal. If a property returns less than 5%, you might be better off investing that cash in an S&P 500 index fund for less effort.

What is the difference between Cap Rate and CoC?

Cash-on-Cash return measures the yield on the exact amount of cash you invested out of pocket (down payment + closing costs). Cap Rate measures the unleveraged yield of the property itself, assuming you bought it in 100% cash with no mortgage.

Why is my estimated cash flow so low?

Amateur investors often forget to factor in operating expenses. A professional calculation automatically deducts 5% for vacancy, 8% for property management, and 10% for maintenance/CapEx from the gross rent. These are real costs that will eventually happen.

What is Net Operating Income (NOI)?

NOI is your total annual rental income minus all operating expenses (taxes, insurance, HOA, maintenance, vacancy, management). Crucially, NOI does NOT include your mortgage payment (debt service).

Rental ROI Calculator

Analyze rental properties like a pro. Calculate your true Cash-on-Cash Return, Cap Rate, and Monthly Cash Flow by factoring in hidden expenses like vacancy, maintenance, and property management.

Property Details

Purchase Price

Down Payment (%)

Interest Rate

Closing Costs

Rehab / Repairs

Income & Expenses

Gross Monthly Rent

Taxes/mo

Insur/mo

HOA/mo

Cash-on-Cash Return (CoC)

-2.73%

The annual return on the actual cash you invested upfront. A good CoC is typically 8% or higher.

Monthly Cash Flow

$-173

Net profit after all expenses and mortgage.

Capitalization Rate (Cap Rate)

5.38%

Yield if bought in all cash (NOI / Price).

Investment Metrics

Upfront Cash Invested$76,000

Net Operating Income (NOI)$16,128/yr

Gross Rent Multiplier (GRM)11.36x

Calculations automatically factor in 5% for vacancy, 8% for property management, and 10% for maintenance/CapEx to ensure realistic estimates.

How to Use the Rental ROI Calculator

Using our rental roi calculator is simple and requires no registration:

Enter the Purchase Price and your planned Down Payment percentage.
Include estimated upfront costs like Closing Costs and immediate Rehab/Repair budgets.
Input the Gross Monthly Rent and your Mortgage Interest Rate.
Enter fixed monthly expenses like Taxes, Insurance, and HOA fees.
The calculator will automatically apply standard deductions for vacancy and maintenance to reveal your true Cash-on-Cash return.

Why Use a Rental ROI Calculator?

Buying real estate based on 'gut feeling' is a recipe for bankruptcy. This Rental ROI Calculator forces you to underwrite deals like a professional, automatically accruing for hidden expenses like CapEx and Vacancy so you know exactly what your true cash flow will be.

How to Calculate Rental Property ROI in 2026

Real estate investing is entirely a numbers game. Falling in love with a property's aesthetics rather than its financials is the fastest way to lose money. Using a professional rental property ROI calculator ensures you are making decisions based on math, not emotion.

To accurately evaluate a rental property, you must look at three critical metrics: Cash-on-Cash Return (CoC), Capitalization Rate (Cap Rate), and Net Operating Income (NOI).

Understanding Cash-on-Cash Return

The single most important metric for everyday investors is the Cash-on-Cash Return. This measures the annual return you receive on the actual cash you pulled out of your bank account to close the deal (Down Payment + Closing Costs + Initial Rehab).

Cash-on-Cash Formula

(Annual Pre-Tax Cash Flow) / (Total Cash Invested) = Cash-on-Cash Return

If you put down $50,000 to buy a house, and after all expenses and mortgage payments you profit $4,000 a year, your Cash-on-Cash return is 8% (4,000 / 50,000). A "good" CoC return is generally considered to be 8% to 12%.

The Capitalization Rate (Cap Rate)

While CoC measures your leveraged return, the Cap Rate measures the unleveraged yield of the property. It answers the question: "If I bought this house in 100% cash with no mortgage, what would my annual return be?"

Cap rates are used to compare the risk of different markets. A property in a prime, safe neighborhood might have a low 4% Cap Rate (because the purchase price is very high relative to rents). A property in a rougher, riskier neighborhood might have a 10% Cap Rate. Generally, investors look for a Cap Rate between 5% and 8%.

The Secret Expenses Amateurs Miss

Amateur investors calculate cash flow by simply subtracting the mortgage from the rent. This is incredibly dangerous. Our rental ROI calculator automatically factors in the "Big Three" expenses that destroy novice landlords:

Vacancy (5%): Your unit will not be occupied 100% of the time. You must set aside 5% of gross rents for the weeks between tenants.
Property Management (8%-10%): Even if you manage it yourself today, you must underwrite the deal assuming you pay a manager. Your time is not free.
CapEx and Maintenance (10%): Roofs, HVACs, and water heaters inevitably break. You must accrue 10% of gross rents every month into a repair fund.