liminfoReal Estate ROI Calculator
Free web tool: Real Estate ROI Calculator
NOI (Annual)
19,200,000
Cap Rate
3.84%
Cash-on-Cash
-1.39%
DSCR
0.90
GRM
20.8
Monthly Payment
1,773,399
About Real Estate ROI Calculator
The Real Estate ROI Calculator is a free, comprehensive browser-based investment analysis tool designed for rental property investors, commercial real estate professionals, and anyone evaluating an income-producing property. Unlike simple cap rate calculators, this tool simultaneously computes six key financial metrics from a single set of inputs: Net Operating Income (NOI), Capitalization Rate (Cap Rate), Cash-on-Cash Return, Debt Service Coverage Ratio (DSCR), Gross Rent Multiplier (GRM), and Monthly Mortgage Payment.
To use the calculator, enter the property's purchase price, your down payment percentage, the loan interest rate and term, the monthly rent, the expected vacancy rate, and the monthly operating expenses. The tool calculates annual gross rent, adjusts for vacancy, subtracts annual operating expenses to determine NOI, then divides by the purchase price for cap rate. It applies the standard mortgage amortization formula to compute the monthly payment, annualizes it for debt service, and subtracts from NOI to determine annual cash flow. Cash-on-cash return is cash flow divided by equity (down payment amount). DSCR is NOI divided by annual debt service — a DSCR above 1.25 is typically required by lenders. GRM is purchase price divided by annual gross rent, a quick valuation shortcut.
This all-in-one analysis tool is used by buy-and-hold investors to underwrite rental properties, by lenders to assess loan viability, and by property managers to evaluate portfolio performance. All computations happen entirely within your browser — no server, no account, no data retention. The responsive grid layout displays all six metrics simultaneously, making it easy to compare different financing scenarios or property options.
Key Features
- Simultaneous computation of 6 real estate metrics: NOI, Cap Rate, Cash-on-Cash, DSCR, GRM, and Monthly Payment
- Full amortization calculation: standard mortgage formula for precise monthly payment and annual debt service
- Cash-on-Cash return: annual cash flow divided by equity invested (down payment amount)
- DSCR calculation: NOI divided by annual debt service to assess loan coverage
- GRM: purchase price divided by annual gross rent as a quick valuation benchmark
- Vacancy rate adjustment built into NOI calculation for realistic income projections
- 100% client-side processing — your property financials never leave your browser
- Dark mode support and responsive grid layout for all screen sizes
Frequently Asked Questions
What metrics does this real estate ROI calculator compute?
This calculator simultaneously outputs six metrics: NOI (annual net operating income after vacancy and operating expenses), Cap Rate (NOI / purchase price), Cash-on-Cash return (annual cash flow after debt service / equity invested), DSCR (NOI / annual debt service), GRM (purchase price / annual gross rent), and the monthly mortgage payment.
What is the difference between cap rate and cash-on-cash return?
Cap rate is an unleveraged metric that compares NOI to total property value regardless of financing. Cash-on-cash return is a leveraged metric that compares actual annual cash flow (after paying the mortgage) to the cash you invested as a down payment. A property can have a 5% cap rate but a 10% cash-on-cash return with favorable leverage.
What is DSCR and why does it matter?
DSCR (Debt Service Coverage Ratio) is NOI divided by annual mortgage payments. A DSCR of 1.0 means the property generates exactly enough income to cover the loan payments. Most commercial lenders require a DSCR of at least 1.25, meaning NOI must be 25% higher than debt service. A DSCR below 1.0 means the property has negative cash flow before owner expenses.
What is GRM and how is it used?
GRM (Gross Rent Multiplier) is the purchase price divided by annual gross rent. It is a quick, rough valuation metric — lower GRM means cheaper relative to rent income. For example, a property costing 500,000,000 won with 24,000,000 won annual gross rent has a GRM of 20.8. Investors use GRM to quickly screen properties before doing deeper analysis.
How is NOI calculated in this tool?
NOI = (Monthly Rent × 12 × (1 − Vacancy Rate)) − (Monthly Operating Expenses × 12). The vacancy adjustment reduces gross rental income to reflect expected empty periods. Operating expenses cover items like maintenance, insurance, property management fees, and utilities — but not mortgage payments or income taxes.
What vacancy rate should I use?
Vacancy rate represents the percentage of time a unit sits empty between tenants. Typical residential vacancy rates range from 3% to 10%, with 5% being a common conservative assumption. Commercial properties may have higher vacancy rates. Using a realistic vacancy rate is critical — understating it inflates NOI and makes a property appear more profitable than it is.
How is the monthly mortgage payment calculated?
The tool uses the standard amortization formula: M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount (purchase price minus down payment), r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments (loan term in years × 12).
Is this calculator free to use?
Yes, the Real Estate ROI Calculator is completely free with no usage limits and no account required. All six metrics are calculated locally in your browser, so your property data, purchase price, and rental income figures are never sent to any server.