Rental Yield Calculator
Know the numbers before you buy. Estimate your rental yield, cap rate, NOI, monthly cash flow, and cash-on-cash return in seconds.
Property assumptions
Start with the purchase price and expected rental income.
5% is a common starting assumption.
Annual operating expenses
Enter your estimated annual costs. Mortgage payments are handled separately below.
Financing
Compare buying with cash versus financing the property.
Cash purchase selected
No mortgage debt service is included in the cash-flow calculation.
Investment snapshot
Your results update automatically as you change the assumptions.
Gross yield
11.2%
Annual scheduled rent ÷ purchase price.
Cap rate
7.5%
NOI ÷ purchase price, before financing.
Monthly cash flow
$940
Estimated cash flow after operating expenses and debt service.
Cash-on-cash return
7.1%
Annual cash flow ÷ total cash invested.
Key numbers
Where the rent goes
Annual operating expenses before mortgage payments.
Cash required to acquire
Includes your down payment, estimated closing costs, and initial repairs.
$159,500
What do these numbers actually mean?
A good rental analysis goes beyond simply dividing rent by the purchase price.
Gross Yield
Annual scheduled rent divided by the purchase price. Useful for quickly screening properties, but it ignores vacancy and operating expenses.
NOI
Net Operating Income is what remains after vacancy and operating expenses, before mortgage payments.
Cap Rate
NOI divided by the purchase price. It lets you evaluate the property's operating performance separately from its financing.
Cash-on-Cash Return
Annual cash flow after debt service divided by the cash you invested. This is particularly useful when comparing different financing structures.
One important distinction
NOI and cash flow are not the same thing. NOI measures the property's operating performance before financing. Cash flow accounts for the mortgage payment after NOI has been calculated.
Ready to manage the property after you buy it?
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