See what your rental property could really return.

There's no universal target. Acceptable cash-on-cash returns vary by market, property type, risk tolerance, financing, and strategy. A lower return may be acceptable in a strong-appreciation market, while a higher one is often expected for more management-intensive or higher-risk properties. It's most useful for comparing deals against each other and against your own goals.

Cap rate measures the property's operating return before financing — net operating income divided by purchase price — so it ignores your loan entirely. Cash-on-cash return measures the pre-tax cash flow you actually receive relative to the cash you invested, so it does reflect your financing. Cap rate compares properties; cash-on-cash reflects your specific deal.

Yes. Monthly cash flow is what remains after operating expenses and the mortgage's principal and interest. That's different from net operating income (NOI), which is calculated before any debt payment — which is why NOI is used for cap rate and cash flow is used for cash-on-cash return.

Operating expenses typically include property taxes, insurance, HOA dues, property management, ongoing maintenance, a vacancy allowance, and miscellaneous costs like utilities or licensing. This calculator keeps those separate from the mortgage so cap rate and cash flow are each computed correctly. It doesn't model income taxes or depreciation.

It's only as accurate as the assumptions you enter. Rents, vacancy, maintenance, and expenses are estimates, and real results vary year to year. Treat the output as a directional estimate for comparing deals rather than a guarantee, and verify the key numbers — rent, taxes, insurance, and financing terms — before you buy.

Generally yes. Total cash invested usually includes your down payment, closing costs, and any upfront repairs or setup costs, because that's the actual cash out of pocket. Including them gives a more realistic cash-on-cash return than using the down payment alone.

Yes. The returns here are property-level, which pairs naturally with DSCR financing, since a DSCR loan qualifies on the property's income rather than your personal income. Enter your expected DSCR loan terms in the financing inputs, then use the calculator's button to explore financing options based on your numbers.