ZovaTool

Cap Rate / Rental Property

Property & rent

Annual operating expenses

Financing

Cap rate
6.64%
NOI / year
$19,920.00
Cash-on-cash
1.10%
Cash flow / mo
$63.27
$759.29 / yr
Mortgage / mo
$1,596.73
DSCR
1.04
>1.25 ideal

Income & expense breakdown

Gross annual rent$30,000.00
Vacancy loss− $1,500.00
Effective gross income (EGI)$28,500.00
Property tax$3,600.00
Insurance$1,200.00
Management$2,280.00
Maintenance$1,500.00
HOA$0.00
Other$0.00
Total opex$8,580.00
NOI$19,920.00

Quick rules of thumb

1% rule (≥ 1% = good)0.83% ✗
Gross Rent Multiplier (GRM)10
50% rule check (NOI vs ½ EGI)passes

How to use the Cap Rate / Rental Property Calculator

  1. Enter the purchase price and monthly rent.
  2. Fill in operating expenses: property tax, insurance, management %, maintenance %, HOA and other costs.
  3. Add financing details (down payment %, mortgage rate, term).
  4. Read cap rate, NOI, monthly cash flow, cash-on-cash return, DSCR, GRM and the 1% & 50% rule checks.
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The four numbers every rental investor should know

Cap rate (NOI / Price) is the unlevered yield. 5–7% is typical in major US metros; 8%+ is increasingly hard to find without value-add work.

Cash-on-cash return is the levered yield — what your actual down-payment dollars earn each year. Mortgage leverage can lift a 6% cap-rate property to 10%+ cash-on-cash.

DSCR (NOI / Debt Service) under 1.0 means the property doesn't cover its mortgage. Lenders want 1.25+; below 1.0 means you fund the shortfall every month.

The 1% rule (monthly rent ≥ 1% of price) and 50% rule (opex ≈ 50% of rent) are quick filters — they won't replace a real pro forma but they kill bad deals in 30 seconds.