What is cap rate and why does it matter for rental property?

Cap rate (capitalisation rate) is the annual net operating income (NOI) of a property divided by its purchase price, expressed as a percentage. NOI is rent minus operating expenses, excluding mortgage payments. A 5% cap rate means the property generates 5 cents of operating income for every dollar invested. Cap rate is useful for comparing properties regardless of how they are financed - a property bought with cash and one with a mortgage have the same cap rate, but different cash flows.

Is the rent vs buy calculator accurate?

The rent vs buy calculator uses standard financial modelling - amortisation for loan balance, compound growth for appreciation and investment returns, and year-by-year cost accumulation. The output is mathematically correct for the assumptions you enter. The key variables to think carefully about are the appreciation rate and the investment return rate (opportunity cost of the down payment) - small changes in these have a large effect on the break-even year.

Do these property calculators include local tax rules?

No. Property tax rates, stamp duty, capital gains tax, rental income tax, and depreciation rules vary significantly by country, state, and municipality. The calculators use the figures you enter. For the accurate tax treatment of your specific property, consult a qualified tax adviser or accountant.

Property and Home Tools

Calculators for property owners, landlords, and home buyers.

14 tools available

Rental Property Profit Calculator

Calculate monthly cash flow, cap rate, and cash-on-cash return for any rental property.

Rent vs Buy Calculator

Compare the true total cost of renting versus buying over any time horizon. Includes equity, appreciation, and opportunity cost.

Property Flip Profit Calculator

Calculate net profit, ROI, and annualised return on a house flip including all hidden costs.

Renovation ROI Calculator

Estimate the ROI on a home renovation before you commit. Includes contingency budget and expected value increase.

Airbnb Profit Calculator

Calculate monthly Airbnb net income from nightly rate, occupancy, platform fees, cleaning costs, and running expenses.

Mortgage Affordability Calculator

Find your maximum home price based on income, debts, down payment, and the 28/43 DTI rules lenders use.

Cash Needed to Buy Property

Calculate the total cash required to buy a property: down payment, closing costs, inspection, moving, repairs, and emergency reserves.

Property Holding Cost Calculator

Calculate the total cost of holding a property for any number of months. Essential for flippers, vacant property owners, and investors.

Mortgage Refinance Break-Even Calculator

Find out how long it takes for a mortgage refinance to pay for itself and how much you save over the life of the loan.

Rental Receipt Generator

Create a rent receipt for a tenant: property address, rent period, amount paid, and balance. Download as PDF or print.

Rental Inspection Report Generator

Create a move-in or move-out property inspection report with room-by-room condition notes and photo reference slots. Print or save as PDF.

Renovation Scope of Work Builder

Create a formal renovation scope of work document. List work areas, tasks, materials, and contractor expectations. Download as PDF for quotes and sign-off.

Contractor Quote Comparison Sheet

Compare up to 4 contractor quotes side by side. Enter line items for each contractor and see which offers the best value. Download as PDF.

Property Handover Checklist Generator

Create a property handover checklist for landlords and tenants at the end of a tenancy. Verify keys, meters, and condition. Print or save as PDF.

About Property and Home Tools

Property decisions involve more numbers than almost any other financial choice - and more ways for those numbers to be misunderstood. These free property calculators cover the full range: from working out whether a rental property will cash-flow positively after mortgage, taxes, insurance, and vacancies, to calculating the true break-even year on a rent vs buy comparison that accounts for appreciation, opportunity cost, and equity growth. Whether you are a first-time buyer, a buy-to-let investor, a house flipper, or an Airbnb host, the tools here give you the actual numbers - not just the optimistic ones. All calculations run in your browser and no data is stored.

Who uses these tools?

Buy-to-let investors calculating monthly cash flow, cap rate, and cash-on-cash return before making an offer
First-time buyers deciding whether to rent and invest the deposit or buy now
House flippers stress-testing a deal with realistic renovation costs, holding costs, and selling fees
Airbnb hosts checking whether short-term renting outperforms a long-term lease
Homeowners deciding whether a kitchen or bathroom renovation will recover its cost at resale
Buyers planning how much cash they need beyond just the deposit

Frequently asked questions

What is cap rate and why does it matter for rental property?: Cap rate (capitalisation rate) is the annual net operating income (NOI) of a property divided by its purchase price, expressed as a percentage. NOI is rent minus operating expenses, excluding mortgage payments. A 5% cap rate means the property generates 5 cents of operating income for every dollar invested. Cap rate is useful for comparing properties regardless of how they are financed - a property bought with cash and one with a mortgage have the same cap rate, but different cash flows.
Is the rent vs buy calculator accurate?: The rent vs buy calculator uses standard financial modelling - amortisation for loan balance, compound growth for appreciation and investment returns, and year-by-year cost accumulation. The output is mathematically correct for the assumptions you enter. The key variables to think carefully about are the appreciation rate and the investment return rate (opportunity cost of the down payment) - small changes in these have a large effect on the break-even year.
Do these property calculators include local tax rules?: No. Property tax rates, stamp duty, capital gains tax, rental income tax, and depreciation rules vary significantly by country, state, and municipality. The calculators use the figures you enter. For the accurate tax treatment of your specific property, consult a qualified tax adviser or accountant.