Property Investment Calculator
Full investment analysis: cash flow, yield, cap rate and projected returns together.
Please note: Estimates only, not investment or legal advice. Property markets, taxes, fees and lending rules vary by location and change over time. Verify figures with a qualified professional before committing.
What the Property Investment Calculator does
This brings every property metric together on one screen: cash flow and cash-on-cash for the income view, cap rate and gross yield for comparison against other properties, DSCR for lender appetite, and total return across the holding period.
Formula
NOI = Effective rent − Operating costsCash flow = NOI − Annual debt serviceCap rate = NOI ÷ Price · Cash-on-cash = Cash flow ÷ Cash investedTotal return = (Cash flow + Appreciation + Principal repaid) ÷ Cash invested
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Purchase price | selected currency | Yes | Accepts 0 or more. |
| Down payment | selected currency | Yes | Accepts 0 or more. |
| Purchase costs | selected currency | Optional | Accepts 0 or more. |
| Monthly rent | selected currency | Yes | Accepts 0 or more. |
| Vacancy allowance | % | Yes | — |
| Annual operating costs | selected currency | Yes | Management, maintenance, insurance, tax. Accepts 0 or more. |
| Mortgage rate | % | Yes | — |
| Mortgage term | years | Yes | Accepts 1 or more. |
| Annual appreciation | % | Yes | — |
| Holding period | years | Yes | Accepts 1 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Purchase price, Down payment, Monthly rent and Vacancy allowance and 5 more.
- Optionally add Purchase costs.
- Select Calculate.
Worked example
$350,000 property, $87,500 down, $10,000 costs, $2,400 rent, 5% vacancy, $9,000 operating costs, 6.5% over 25 years, 3% appreciation, 10 years.
- Price
- 350000
- Down
- 87500
- Rent
- 2400
- Costs
- 9000
- Rate
- 6.5
- Years
- 10
NOI $18,360, mortgage $1,772/mo, cash flow −$2,909 — but appreciation and paydown lift the 10-year total return well above 100%.
Reading the result
- DSCR and annual cash flow always move together here (DSCR ≥ 1 means NOI covers the full mortgage payment, which is exactly when cash flow is non-negative) — the value of the ratio is comparing debt-coverage generosity across differently-priced properties, not telling you something cash flow does not.
- A DSCR sitting right at the 1.25 lender threshold is worth treating as a soft pass rather than a clear one — real underwriting also weighs credit, reserves and property type beyond this single ratio.
Assumptions and limitations
- Rent, operating costs and vacancy rate are all held constant for every year of the holding period — there is no built-in rent growth or expense inflation, despite holding periods in the table running out to 20 years.
- Appreciation compounds at one constant rate for the whole period, the same simplification used throughout these calculators.
Common mistakes
- Comparing DSCR across two properties financed with different loan terms as if it reflects deal quality alone — a shorter amortisation raises the payment and lowers DSCR for an identical property and identical rent, so DSCR partly reflects the financing choice, not just the asset.
- Reading "cap rate" and "cash-on-cash return" as competing verdicts on the same deal — cap rate deliberately excludes financing and cash-on-cash deliberately includes it, so they answer different questions and disagreeing is normal, not a red flag.
Frequently asked questions
Which metric matters most?
Cash flow determines whether you can hold the property. Total return determines whether it was worth holding. A deal that fails on cash flow can force a sale at the worst moment.
What DSCR do lenders require?
Commonly 1.25 for investment property, meaning NOI exceeds the mortgage payment by 25%. Below 1.0 the property does not cover its own debt.