Nitro ToolzCash-on-Cash Return & Cap Rate Calculator
Screen a rental with cap rate, NOI and cash-on-cash return.
Cash-on-Cash Return & Cap Rate Calculator
Generated 10/9/2026
- Purchase price: 325000
- Down payment: 25
- Closing costs: 8000
- Rehab and initial repairs: 12000
- Loan interest rate: 7
- Loan term: 30
- Gross rent (per year): 37200
- Vacancy allowance: 5
- Operating expenses (per year): 11500
- Cash-on-cash return
- 4.33%
- Cap rate
- 7.34%
- Net operating income
- $23,840
- Annual debt service
- $19,460
- Annual cash flow
- $4,380
- Total cash invested
- $101,250
Cap rate ignores financing. Cash-on-cash includes your loan payments and the cash you actually put in.
How to use this tool
- Enter price, down payment, closing and rehab costs.
- Enter annual rent, a vacancy allowance and operating expenses without the mortgage.
- Compare cap rate and cash-on-cash with your target.
Formulas
NOI = rent x (1 - vacancy) - operating expenses. Cap rate = NOI / price.
Cash-on-cash = (NOI - annual debt service) / total cash invested.
Frequently asked questions
What is a good cap rate?
It varies by market and risk. Many investors screen for 5 to 10%, with lower rates in expensive, stable markets.
Cap rate vs cash-on-cash?
Cap rate ignores financing and compares properties. Cash-on-cash shows the return on your own cash after loan payments.
What goes in operating expenses?
Taxes, insurance, repairs, management, utilities and reserves. Not mortgage payments or depreciation.
Why include vacancy?
No property is full forever. A 5 to 8% allowance is a common starting point.