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Financial Calculators● INSTANT WASM ENGINE
Real Estate Cap Rate & Rental Yield Calculator
Analyze residential or commercial real estate acquisitions with Cap Rate, Net Operating Income (NOI), Cash-on-Cash Return, and monthly cash flow.
Input Parameters
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$
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Property Cap Rate Instant
7.14%
Monthly Cash Flow: $550/mo
Proportional Breakdown100% Total
Mortgage Debt Service:$1,950/mo
Operating Expenses:$700/mo
Net Discretionary Cash Flow:$550/mo
Analytical Summary
Net Operating Income (NOI)$30,000/yr
Gross Rental Yield9.14%
Monthly Net Cash Flow$550
Annual Operating Expenses$8,400
Mathematical Formula & Methodology
Underlying equations and mathematical logic governing this engine
Step 01
Net Operating Income (NOI)
NOI = (MonthlyRent * 12) - OperatingExpensesAnnual property revenue after subtracting operational overhead.
Step 02
Capitalization Rate (Cap Rate)
CapRate = (NOI / PurchasePrice) * 100Unleveraged rate of return expected on a real estate investment property.
Step 03
Monthly Net Cash Flow
CashFlow = MonthlyRent - (Expenses/12) - MortgageActual monthly discretionary cash deposited into bank account.
How to Use This Calculator
1
Input Asset Valuation
Enter acquisition cost including initial closing fees.
2
Account for Operating Costs
Factor in property tax, landlord insurance, HOA, and 5-10% maintenance reserves.
3
Verify Net Cash Flow
Ensure rental income adequately covers debt service and yields positive cash flow.