Investment Property Calculator

It estimates gross effective income, NOI, annual debt service, cash flow before taxes, cap rate, ROE, DSCR, and longer-term results such as sale proceeds, total profit, and IRR.

Gross effective income is expected rental income reduced by vacancy. The calculator uses the formula gross potential rental income × (1 - vacancy rate) for the first year, then applies rent growth in the holding-period projection.

Operating expenses should include recurring ownership and operating costs such as property tax, insurance, repairs, management, utilities paid by the owner, CapEx reserves, and similar recurring costs. They should not include mortgage principal or interest.

NOI is income after vacancy and operating expenses, but before financing. Cash flow before taxes (CFBT) goes one step further by subtracting annual debt service. That is why a property can show a positive NOI and still have weak or negative cash flow after financing.

Cap rate is NOI ÷ property value. In this calculator it is shown as a first-year metric, and when repairs are enabled it uses the value after repairs as the value basis rather than the original purchase price.

Cash-on-cash return compares first-year annual cash flow with the initial cash invested. Initial cash invested includes equity put into the deal, buyer closing costs, and repair cost when repairs are enabled.

You can either project sale price from annual appreciation and holding period or enter a manual sale price. Net sale proceeds are then estimated as sale price - selling closing costs - remaining loan balance.

IRR shows N/A when the cash-flow pattern does not support a usable internal rate of return or when the numerical solution does not converge. This can happen with unusual combinations of very short holds, no cash inflows, or highly irregular cash-flow timing.