Investor Yield Calculator
Evaluate rental property deals using the metrics that matter: cap rate, cash-on-cash return, gross rent multiplier, and break-even occupancy. Pre-filled with the current national median home price and mortgage rate.
Cap Rate vs. Cash-on-Cash
Cap rate measures the property's return independent of financing (NOI / Price). Cash-on-cash measures your actual return on deployed capital, factoring in leverage. A property with a 5% cap rate can produce a 10%+ cash-on-cash return with favorable financing — but leverage amplifies losses too.
Why These Numbers Matter
Most buyers focus on purchase price. Investors focus on yield. A $200K property renting for $1,800/mo in a low-tax state can outperform a $400K property renting for $2,500/mo in a high-tax state. This calculator reveals which deals actually cash-flow after every expense.
Operating Expenses
This property loses money monthly. You are subsidizing the tenants housing from your own income.
Monthly Breakdown
Cash Invested
Wealth Projection (3.5% annual appreciation)
Key Ratios Explained
Cap Rate — Net Operating Income / Price. Measures property return ignoring financing. Above 6% is strong for residential.
Cash-on-Cash — Annual Cash Flow / Cash Invested. Your actual return on money deployed. Compare against S&P 500 (~10.5% avg).
GRM — Price / Annual Rent. Lower = faster payoff. Under 15x is favorable for investors.
Break-even Occupancy — Minimum occupancy to cover costs. Below 85% gives you margin for vacancies and repairs.