Calculator
Cap rate and cash-on-cash calculator
Two ways of looking at the same property: what it earns on its price, and what your cash earns.
How it’s worked out
- NOI = income − operating expenses
- Cap rate = NOI ÷ price or value
- Cash flow = NOI − debt service
- Cash-on-cash = cash flow ÷ cash invested
Cap rate ignores financing, so it compares properties. Cash-on-cash includes your loan, so it describes your own deal. Operating expenses here exclude loan payments, depreciation and capital improvements.
These figures are only as good as what you type in.
Praedia OS™ works them out from your own books for every property, and you choose the value your cap rate is measured against.
For illustration, not tax, legal, accounting or investment advice. Your figures stay in your browser: nothing is sent or saved.