Rental Property Yield & Cash Flow Calculator
Calculate the gross and net rental yield on an investment property — plus cap rate, cash-on-cash return, monthly cash flow after the mortgage, and debt service coverage.
NOI / Purchase Price
- Gross Potential Rent—
- (−) Vacancy Loss (5%)—
- (=) Effective Gross Income—
- (−) Total Operating Expenses—
- (=) Net Operating Income (NOI)—
- (−) Annual Debt Service (P&I)—
- (=) Net Pre-Tax Cash Flow—
Risk & Debt Underwriting Metrics
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10-Year Cumulative Wealth & Equity Forecast
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| Year | Property Value | Gross Rent / Yr | Loan Principal Balance | Total Accumulated Equity | Cumulative Free Cash | Total Estimated ROI |
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Methodology & Underwriting Definitions
The formulas behind each real estate metric on this page.
Net Cap Rate (Capitalization Rate)
Cap Rate = NOI ÷ Purchase PriceMeasures unleveraged yield, as if the property were bought entirely in cash. Leaving out financing makes properties and markets directly comparable.
Cash-on-Cash Return (CoC)
CoC = Annual Pre-Tax Cash Flow ÷ Total Cash InvestedCompares the cash you actually keep each year with the cash you put in: down payment, closing costs and make-ready or renovation spending.
The 50% Rule Benchmark
Opex ≈ 50% × Gross RentA rough screening rule of thumb: operating costs (excluding the mortgage) often run 40–50% of rent once vacancy, repairs and capital replacements are counted.
Gross yield vs. net yield
Gross yield is a quick, simple comparison metric — annual rent divided by property price — useful for quickly screening properties, but it ignores all ongoing costs. Net yield subtracts annual expenses (property management, maintenance, insurance, property tax, vacancy allowance) before dividing by price, giving a more realistic picture of actual return. On this page, net yield is the cap rate.
Two properties with identical gross yields can have very different net yields depending on their expense profile — an older property may need more maintenance, while a newer one might carry higher property tax, both of which erode the gross number differently.
By Suhaib Hassan · Formula verified 27 Sep 2026 · How CalculatePilot verifies formulas →
What counts as an expense in this calculation
A thorough net yield calculation should include property management fees (if using a manager), routine maintenance and repairs, property insurance, property tax, HOA fees if applicable, and a reasonable allowance for vacancy periods between tenants — leaving any of these out will overstate your actual return.
Mortgage payments are not an operating expense, so they don't affect cap rate or net yield. They are subtracted afterwards to get cash flow, cash-on-cash return and DSCR — the numbers that show how the property performs with your financing.
Frequently asked questions
What's considered a good rental yield?
This varies significantly by market and property type, but gross yields in the 5-8% range are commonly cited as solid in many markets, while some higher-risk or lower-cost markets can show higher yields — always compare within your specific local market rather than against a universal benchmark.
Should I use gross or net yield to compare properties?
Net yield gives a more accurate picture since it accounts for actual holding costs, though gross yield is useful as a quick first-pass screening tool before digging into expense details.
Complementary Property Valuation Engines
Cross-reference financing, exit strategies, and home equity.