Investment Property ROI Calculator
Analyze potential investment properties with our comprehensive calculator. Calculate cash flow, cap rate, cash-on-cash return, and total ROI.
Understanding the Metrics
DSCR (Debt Service Coverage Ratio)
Measures the property's ability to cover its debt payments. A DSCR of 1.0 means income equals debt payments. Most lenders require 1.0-1.25 minimum.
Cap Rate
Net Operating Income divided by purchase price. Useful for comparing properties regardless of financing. Higher cap rates indicate higher returns relative to price.
Cash-on-Cash Return
Annual cash flow divided by total cash invested. Shows the return on your actual out-of-pocket investment. 8-12% is often considered a good target.
Total ROI
Combines cash flow, appreciation, and loan paydown to show total return on investment. This comprehensive view captures all wealth-building components.