Real Estate Calculator
Property Financials
Investment Outputs
| Annual Gross Revenue | — |
|---|---|
| Annual Operating Expenses | — |
| Net Operating Income (NOI) | — |
| Capitalization Rate (Cap Rate) | — |
How to Use This Real Estate Calculator
Two duplexes on the same street can list for similar prices while producing very different returns. Before you talk to a lender about leverage, you need the property's income story on its own—Net Operating Income and cap rate strip financing out so you can compare buildings fairly. Enter revenue and operating costs here to see whether the asset clears your yield hurdle.
- Enter property value or purchase price. Use the asking price or your underwritten value.
- Set rental income period and amount. Toggle monthly or annual for gross rent collected.
- Set operating expenses period and amount. Include taxes, insurance, maintenance, management, and utilities—exclude mortgage payments.
- Press Calculate. Review annual gross revenue, operating expenses, NOI, and cap rate.
To add mortgage financing, cash flow, and cash-on-cash return, use the Rental Property Calculator.
Real Estate Formulas and Practical Applications
Cap rate is the rental world's version of a bond yield—it tells you what the building earns relative to its price if you paid all cash. NOI is the numerator: what the property actually generates after keeping the lights on and the lawn mowed, but before the bank gets paid.
Net Operating Income
NOI = Annual Rental Income − Annual Operating Expenses
On a property with $48,000/year gross rent and $18,000/year operating costs, NOI is $30,000.
Capitalization rate
Cap Rate = NOI / Property Price × 100
At a $500,000 price, that $30,000 NOI yields a 6.0% cap rate. Compare that figure to other listings in the same submarket—not to stock market returns directly, because cap rate ignores appreciation and tax benefits.
What belongs in operating expenses
Include property taxes, insurance, maintenance, property management, and owner-paid utilities. Exclude mortgage principal and interest, income taxes, capital improvements you capitalize, and depreciation—those sit below NOI in a full pro forma.
Frequently Asked Questions
What is a good cap rate for rental property?
Cap rates vary by market and asset class. Many investors compare against local averages—5% to 8% is common in many U.S. markets, but a higher cap rate often signals higher risk or lower growth expectations.
What is Net Operating Income (NOI)?
NOI is annual rental income minus annual operating expenses, excluding mortgage payments, income taxes, and depreciation.
Why exclude mortgage from operating expenses?
NOI and cap rate measure property performance independent of financing so you can compare buildings on an apples-to-apples basis regardless of how they are leveraged.
Can I enter monthly or annual income and expenses?
Yes. Use the period dropdowns for rental income and operating expenses—the calculator normalizes everything to annual figures before computing NOI and cap rate.
How is this different from the Rental Property Calculator?
This Real Estate Calculator focuses on NOI and cap rate without mortgage inputs. The Rental Property Calculator adds financing, cash flow, and cash-on-cash return for leveraged deals.