Property ROI Calculator
Calculate gross yield, net yield, cap rate, cash-on-cash return, and payback period at once.
Tax, insurance, maintenance, management fees
Enter purchase price and monthly rent to see all metrics
Understanding Property ROI Metrics
Gross Yield
Quick initial screen. Annual rent divided by purchase price. Doesn't account for any costs — use it to quickly rule out properties before deeper analysis.
Net Yield
More realistic. Subtracts operating expenses and mortgage from income before dividing by price. Shows your actual yield after all recurring costs.
Cap Rate
The industry standard. Net operating income (rent minus expenses, but NOT mortgage) divided by property value. Best for comparing properties regardless of financing.
Cash-on-Cash Return
Your personal return. Annual cash flow (after ALL costs including mortgage) divided by the cash you actually invested. The metric that matters most for leveraged investors.
Which Metric Should You Use?
No single metric tells the whole story. Each answers a different question:
- Screening properties? Use gross yield — it's fast and only needs price + rent.
- Comparing investments? Use cap rate — it normalises for financing differences.
- Evaluating your personal return? Use cash-on-cash — it reflects your actual leverage and costs.
- Planning cash flow? Use net yield — it shows what you actually keep after costs.
- Assessing risk? Use payback period — longer payback = more time exposed to risk.
Want the complete picture?
This calculator gives you the key metrics but doesn't include country-specific purchase costs (stamp duty, legal fees), capital gains tax on exit, or multi-year projections with appreciation. Our full calculator handles all of this for 19 countries — use it to model the complete investment lifecycle.
Include Country-Specific Taxes & Projections
Add accurate stamp duty, closing costs, capital gains tax, and 10-year projections for your country.
Individual Metric Calculators
Need just one metric? Use these focused tools.
Frequently Asked Questions
How do you calculate ROI on rental property? ▼
There are several ways: Gross Yield (annual rent / price × 100), Cap Rate (NOI / price × 100), and Cash-on-Cash Return (annual cash flow / cash invested × 100). For a complete ROI picture, use all three — gross yield screens properties quickly, cap rate compares them fairly, and cash-on-cash shows your actual return.
What is a good ROI for rental property? ▼
Benchmarks vary by metric: Gross yield 5–8% is solid, cap rate 5–10% is good, cash-on-cash 8–12% is strong. These shift with interest rates and market conditions. Premium markets (Manhattan, London Zone 1) often show lower returns but stronger appreciation. Always compare against local norms and alternative investments.
What is the difference between cap rate, yield, and cash-on-cash? ▼
Gross yield is the simplest: rent / price. Cap rate accounts for expenses but ignores financing: (rent − expenses) / value. Cash-on-cash includes everything: (rent − expenses − mortgage) / cash you put in. The power of leverage means a 5% cap rate property can deliver 10%+ cash-on-cash with a mortgage.
What is the payback period for rental property? ▼
Payback period = total cash invested / annual cash flow. It tells you how many years until your rental income covers your initial investment. Under 15 years is generally considered acceptable. This metric is conservative — it ignores appreciation and equity buildup through mortgage paydown.