1. Cap Rate Calculator
Cap rate = NOI ÷ property price. NOI excludes mortgage payments — it measures the property's performance as an asset, not its financing structure.
2. Cash-on-Cash Return Calculator
Cash-on-cash = annual cash flow ÷ total cash invested. Cash flow = NOI − annual mortgage payments. Total cash = down payment + closing costs + renovations.
3. NOI Builder — Assemble NOI from Its Components
NOI = (gross rent + other income − vacancy allowance) − operating expenses. Vacancy is computed from gross rent; management fees from effective income (EGI).
4. Compare 2 Properties
Cap rate and cash-on-cash side by side for two properties — useful for seeing how leverage changes the ranking (cap rates can tie while cash-on-cash differs widely).
A Property A
B Property B
How It Works & Worked Example
- Cap rate = NOI ÷ property price × 100%. NOI = rental income − operating expenses, and mortgage payments are deliberately excluded because NOI measures the asset's performance, not how you pay for it.
- Cash-on-cash return = (NOI − annual mortgage payments) ÷ (down payment + closing costs + renovations) × 100%. This metric measures the return on the cash actually out of your pocket.
- Worked example: a property priced at Rp2,000,000,000 with rental income of Rp180,000,000 per year and operating expenses of Rp60,000,000 per year produces NOI of Rp120,000,000, giving a cap rate of 6.00%. With a down payment of Rp500,000,000, closing costs of Rp50,000,000, and annual mortgage payments of Rp90,000,000, annual cash flow is Rp30,000,000 and cash-on-cash return is 5.45%.
- Tool limits: for general rental properties (houses, apartments, shophouses). For an ADU — an accessory dwelling unit on a residential lot — use a dedicated ADU calculator, since its cost structure and permitting differ.
Frequently Asked Questions
What is cap rate?
Cap rate is the ratio of NOI to property price, expressed as a percent: cap rate = NOI ÷ property price × 100%. It measures the property's performance as an asset, unaffected by financing. For example, NOI of Rp120,000,000 divided by a price of Rp2,000,000,000 gives a cap rate of 6.00%.
What is cash-on-cash return?
Cash-on-cash return measures the annual return on the cash you actually invested: cash-on-cash = annual cash flow ÷ total cash invested × 100%. Cash flow = NOI − annual mortgage payments; total cash = down payment + closing costs + renovations. For example, annual cash flow of Rp30,000,000 divided by total cash of Rp550,000,000 (Rp500,000,000 down payment + Rp50,000,000 closing costs) gives 5.45%.
What is the difference between cap rate and cash-on-cash return?
Cap rate evaluates the property as a debt-free asset, so two properties can be compared apples-to-apples. Cash-on-cash evaluates the return on your own cash, so it captures the effect of mortgage leverage. Properties with the same cap rate can have very different cash-on-cash returns depending on down payment size.
Why are mortgage payments excluded from NOI?
NOI is designed to measure a property's operating performance, not its owner's financing structure. Two buyers of the same property can have different payments due to different down payments and rates, yet the property's NOI stays the same. Mortgage payments only enter cash-flow metrics like cash-on-cash return.
Is a 6% cap rate good?
There is no universally good number: a reasonable cap rate differs by city, property type, and market conditions. This calculator only computes the figure from the data you enter and does not judge whether a property is worth buying. Compare similar properties in the same area, and verify your assumptions independently.
Is this calculator investment advice?
No. All results on this page are educational estimates based on the numbers you enter. This calculator does not consider price appreciation, income taxes, interest-rate changes, or future vacancy risk. Consider consulting a licensed professional before making investment decisions.