LogoKALKULERO.
DE
← All Calculators•Real Estate & Finance•Cap Rate

Cap Rate & Rental Yield Calculator

Calculate Capitalization Rate (Cap Rate), Net Operating Income (NOI), monthly cashflow, and Cash-on-Cash return.

Disclaimer: All calculations and figures are provided for informational purposes only and without warranty. This does not constitute legal, tax, or financial advice. Liability for any decisions made based on this calculator is disclaimed.
Scenarios:

1. Purchase Price & Rental Income

$
%
$/mo.
$/mo.
%

2. Equity & Financing Terms

$
%
%

💡 Gesamtinvestition: $332,800.00 (inkl. $12,800.00 Kaufnebenkosten). Net Operating Income (NOI): $12,714.00/Jahr.

Capitalization Rate (Cap Rate)
3.97 %

Net Rental Yield (on Total Cost): 3.82% | Gross Rent Multiplier: 19.8x.

Cash-on-Cash Return:-4.34 %
Monthly Cash Flow:-$234.83
Debt Service / mo:-$1,294.33
Gross Rental Yield5.06 % gross rent / price
Rent Multiplier19.8x price / annual rent
Annual NOI$12,714.00net operating income
Annual Cash Flow-$2,818.00after debt service

Real Estate Investment Analysis: Capitalization Rates vs. Leveraged Yields

In residential and commercial real estate investing, assessing risk-adjusted returns requires evaluating Net Operating Income (NOI), Cap Rates, and leveraged Cash-on-Cash velocity.

1. Essential Real Estate Equations

  • Net Operating Income (NOI): Effective Gross Rent − Operating Expenses − Maintenance Reserve
  • Cap Rate: NOI / Purchase Price × 100
  • Net Rental Yield: NOI / Total All-in Acquisition Cost × 100
  • Cash-on-Cash Return: (NOI − Debt Service) / Total Cash Equity Invested × 100

2. Location-Based Cap Rate Benchmarks

Tier-1 Prime Metro Assets generally trade at 3.0% to 4.0% Cap Rates (capital appreciation play). Suburban Class-B Assets trade around 4.5% to 6.0%, while High-Yield Secondary Markets command 7.0%+ Cap Rates to offset higher tenant turnover risks.

Frequently Asked Questions (FAQ)

What is a Capitalization Rate (Cap Rate) in real estate?▼

The Cap Rate measures the unleveraged rate of return generated by an investment property: Cap Rate (%) = Net Operating Income (NOI) / Property Purchase Price × 100. It allows institutional comparison across assets regardless of debt structuring.

What is the difference between Gross Rental Yield and Net Rental Yield?▼

Gross Rental Yield simply divides total annual gross rent by purchase price. Net Rental Yield factors in all acquisition closing costs (transfer tax, notary, legal, broker fees) and subtracts property management, repairs, and vacancy losses from gross rental receipts.

What does the Cash-on-Cash Return metric represent?▼

Cash-on-Cash Return calculates the annual cash income earned on the actual cash invested in the deal after servicing all mortgage debt: Cash-on-Cash Return (%) = Annual Pre-Tax Cash Flow / Total Cash Equity Invested × 100.

What is a Gross Rent Multiplier (GRM)?▼

The Gross Rent Multiplier indicates how many years of gross rental income are required to equal the property's purchase price: GRM = Purchase Price / Annual Gross Rent. A GRM under 20 corresponds to a gross yield exceeding 5%.

More Calculators

CompoundingCompound Interest CalculatorCalculate exponential compound interest growth, recurring monthly investment plans, and long-term portfolio schedules.Commercial SolarCommercial Solar ROI CalculatorCalculate commercial photovoltaic ROI, payback period, and levelized cost of electricity (LCOE).FIREFIRE & Early Retirement CalculatorCalculate your target FIRE Number, savings rate, 4% Safe Withdrawal Rate, and early retirement age.Opportunity CostOpportunity Cost CalculatorCalculate foregone compound investment returns and trade-offs of major financial decisions.