Cap rate and rental yield calculator
Work out the cap rate, the gross and net yield, the cash on cash return and the cash flow of a rental property. Free, no account.
Your figures stay on your deviceFree, no accountUpdated
Result
Enter the purchase price and the monthly rent to see the result.
Estimates from the numbers you entered, before income tax. This is not financial advice.
To calculate a cap rate, divide a rental property's yearly net operating income (NOI) by its purchase price: $17,880 of NOI on a $300,000 property is a cap rate of 5.96%. NOI is the rent minus vacancy and running costs, before loan payments and income tax. Enter the price, the purchase costs, the rent, the vacancy and the running costs, and this calculator shows the cap rate, the gross and net rental yield, the cash on cash return and the cash flow; add a loan to count its payments. It gives estimates from the numbers you enter. It is not financial advice, and it does not say whether a property is worth buying.
Made by Vistura, the virtual tour platform for estate agents
| You enter | Purchase price, purchase costs, monthly rent, vacancy and yearly running costs; optionally the loan amount, rate and term. |
|---|---|
| You get | Gross yield, net yield, cap rate, cash on cash return, and monthly and yearly cash flow, each with its formula in your numbers. |
| Loan | A fully amortizing loan with a fixed monthly payment. Any rate from 0%. |
| Not included | Income tax, changes in rent or price, and the sale of the property. |
| Privacy | Runs in your browser. Nothing you type is sent anywhere (Privacy policy). |
| Price | Free, no account. |
After the numbers, show the property
Vistura is virtual tour software for real estate. Each room of the property is a 360 photo, and an investor walks through it from a single link you share.
One 360 photo per room. 
In the editor, drag a room onto its doorway and the two rooms are linked. 
Buyers open the link on any phone, walk from room to room and can send you a question from inside the tour.
Free plan: 3 tours online at a time, with Vistura branding. Pro: unlimited tours online, with your own logo and colours.
How to use the cap rate calculator
- Enter the purchase price: the asking price for a first estimate, the agreed price once you have one.
- Add the purchase costs: closing costs, transfer taxes, legal fees and any work needed before the first tenant.
- Enter the monthly rent and the vacancy: the share of the year you expect the property to stand empty.
- Add the yearly running costs: property tax, insurance, HOA fees, repairs and management.
- Check "Add a loan" if there is financing, and type the amount, the rate and the term.
- Read the result and the formulas under it. Copy it as text to send or to keep with your notes.
The formulas, with an example
A $300,000 property with $9,000 of purchase costs, $2,200 of rent a month, 5% vacancy, $7,200 of running costs a year and a $225,000 loan at 6.5% over 30 years:
- Gross yield: monthly rent × 12 ÷ purchase price. $26,400 ÷ $300,000 = 8.8%.
- Net operating income (NOI): yearly rent − vacancy − running costs. $26,400 − $1,320 − $7,200 = $17,880.
- Cap rate: NOI ÷ purchase price. $17,880 ÷ $300,000 = 5.96%.
- Net yield: NOI ÷ (purchase price + purchase costs). $17,880 ÷ $309,000 = 5.79%.
- Yearly cash flow: NOI − loan payments. The loan costs $1,422.15 a month, so $17,880 − $17,065.84 = $814.16, or $67.85 a month.
- Cash on cash return: yearly cash flow ÷ cash invested. $814.16 ÷ ($309,000 − $225,000) = 0.97%.
Cap rate, net yield and gross yield: what changes
The four figures answer different questions, so compare a property with another using the same one.
| Figure | Counts | Divided by | It answers |
|---|---|---|---|
| Gross yield | The rent, in full | Purchase price | What does the rent come to against the price, before any cost? |
| Cap rate | Rent minus vacancy and running costs | Purchase price | What does the property earn against its price, with no loan in the picture? |
| Net yield | Rent minus vacancy and running costs | Price plus purchase costs | What does it earn against everything paid to buy it? |
| Cash on cash | NOI minus loan payments | Cash you put in | What does the money you put in earn in a year? |
What the figures leave out
- Income tax: rent is usually taxed, and the rules depend on the country and on the owner. A tax adviser can tell you what applies.
- Price and rent changes: the figures describe one year with the numbers you typed, and say nothing about what the property will be worth.
- Loan repayments as savings: the cash flow counts the whole loan payment as money going out, although part of it pays down the loan.
- Your assumptions: a higher vacancy or a large repair changes the result. Try the numbers again with the costs you fear, not only the ones you hope for.
Selling to investors: the numbers, then the property
If you are an agent, the investor will run these sums before asking for a showing. Send them the figures with the numbers behind them, so they can change any assumption themselves, and say where the rent and the costs came from.
Next, an investor wants to see what the money buys, and may live in another city. In a Vistura virtual tour each room is a 360 photo, and they walk through the whole property from one link, on a phone or a computer, before planning a visit. You make the tour from your own 360 photos and share the link with the figures.
Questions
What is a cap rate in real estate?
The capitalization rate is a rental property's yearly net operating income (NOI) divided by its purchase price or market value. It shows what the property earns against its price with no loan in the picture, so properties can be compared whatever the financing.
What is the difference between cap rate and rental yield?
Gross rental yield uses the full rent, with no costs. Cap rate takes off vacancy and running costs first. Net yield takes off the same costs and also adds the purchase costs to the price it divides by, so it comes out a little lower than the cap rate.
What is a good cap rate?
There is no single figure. Cap rates differ by market, by type of property and over time, and a higher one can reflect a higher risk. This calculator shows the sums and does not rate them: compare with similar properties in the same area.
Does the cap rate include the mortgage?
No. Loan payments are not part of NOI, so the cap rate is the same however the purchase is financed. The loan shows up in the cash flow and in the cash on cash return.
Why does cash on cash show a dash?
The loan covers the price and the purchase costs, so there is no cash invested to divide by. The cash flow is still shown.
Is this financial advice?
No. It gives estimates from the numbers you enter, and it does not recommend any investment. A financial or tax adviser can look at your own situation.
Are my figures saved or sent?
They are saved in this browser, so they are there when you come back, and nothing is sent to Vistura or anywhere else. "Clear the figures" removes them.
Your next listing, as a tour
One 360 photo per room, linked together, shared in one link.
Free plan: 3 tours online at a time, with Vistura branding. Pro: unlimited tours online, with your own logo and colours.