Real Estate Calculator
Property Financials
Investment Outputs
| Annual Gross Revenue | — |
|---|---|
| Annual Operating Expenses | — |
| Net Operating Income (NOI) | — |
| Capitalization Rate (Cap Rate) | — |
Understanding Real Estate Return Metrics
Evaluating a rental property involves understanding two core metrics: **Net Operating Income (NOI)** and **Cap Rate**. These metrics let you compare different investment properties without factoring in mortgage structures.
The Real Estate Formulas
These metrics are calculated as follows:
- **Net Operating Income (NOI):** ***Annual Rental Income - Annual Operating Expenses***
- **Capitalization Rate (Cap Rate):** ***NOI / Property Purchase Price × 100***
Operating Expenses vs. Debt Service
Operating expenses include property taxes, building insurance, maintenance, property management, and utilities. They **exclude** monthly mortgage principal and interest payments (debt service), income tax, or depreciation.
Disclaimer. This calculator is for informational purposes only. Local market conditions, real estate appreciation, vacancy rates, and mortgage financing will affect your actual returns.