Tools you might need next
Calculate cap rate for investment property. Enter NOI and property value to find capitalization rate and compare commercial real estate investment returns.
Calculate gross and net rental yield on investment property. Enter rent, expenses, and purchase price for annual yield percentage and cash flow analysis.
Calculate DSCR for commercial real estate loans. Enter NOI and debt service to find coverage ratio required by lenders for investment property financing.
Annual net cash flow after debt service divided by total out-of-pocket investment at purchase.
CoC = (Annual Pre-Tax Cash Flow ÷ Total Cash Invested) × 100All cash deployed at acquisition — not total property value. Excludes future reserves unless funded upfront.
Cash Invested = Down Payment + Closing Costs + Initial RepairsNet operating income minus mortgage principal and interest payments for the year.
Cash Flow = NOI − Annual Debt ServiceUpdated: July 2026
CoC = 4,800 ÷ 50,000 = 9.6%. Strong levered return if property appreciates additionally.
After refinance pulling capital out, recalculate CoC on remaining skin in the game for infinite return target.
−$2,400 cash flow on $80k invested = −3% CoC. Investor relies on appreciation — calculator flags negative yield.
Measure return on the actual cash you invest in a rental property, accounting for financing. Enter down payment, closing costs, annual pre-tax cash flow, and any initial repairs to calculate cash-on-cash return percentage.