What to check before you apply for a mortgage
A practical checklist before applying for a mortgage: credit, down payment, debt-to-income ratio, documents, the Loan Estimate and often-forgotten costs.
Rental property calculator
Evaluate a house or apartment to rent out: gross yield, cap rate, net operating income, monthly cash flow and return on your cash.
Fix the highlighted fields to see your result.
Monthly cash flow—
- Cap rate
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- Cash-on-cash
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- Gross yield
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- Net operating income (annual)
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- Cash invested
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How it is calculated
NOI = Rent × 12 × (1 − Vacancy) − Expenses × 12
Cap rate = NOI ÷ Price · Cash-on-cash = (NOI − Mortgage × 12) ÷ Cash invested
Find the mortgage payment with the mortgage calculator.
Assumptions and limitations
- Income taxes, depreciation and appreciation are not included.
- Rent and expenses are constant through the year.
This tool is educational and provides estimates. It is not a credit offer or financial advice. Actual terms are set by each institution.
Frequently asked questions
What is a cap rate?
The capitalization rate is net operating income (rent minus vacancy and operating expenses, before the mortgage) divided by the property price. It compares properties regardless of financing.
What is cash-on-cash return?
Annual cash flow after the mortgage payment divided by the cash you put in (down payment, closing costs and repairs). It shows the return on your own money.
Which expenses should I include?
Property taxes, insurance, HOA, maintenance, property management and utilities you pay. Leave the mortgage out of operating expenses; it goes in its own field.