From Rent to Return

This investment property calculator walks the full income stack: gross rent minus operating expenses gives NOI; NOI divided by price is the cap rate; NOI minus mortgage payments is cash flow; and cash flow divided by your down payment is the cash-on-cash return.

Leverage Changes the Picture

Cap rate measures the property; cash-on-cash measures your money. With 20% down, the same property can yield a 7.2% cap rate but a much higher cash-on-cash return — leverage amplifies both gains and losses, so underwrite at realistic vacancy and repair costs.

What the Defaults Assume

The example expense figure (~25% of rent) covers taxes, insurance, and maintenance but not vacancy or major capital repairs. Seasoned investors add 5–10% vacancy and a capex reserve before trusting the cash-flow number.