Real Estate Investment Calculator
Analyze property investments with our comprehensive calculator. Estimate mortgage payments, ROI, rental income potential, and long-term appreciation.
Understanding Real Estate Investment Metrics
Making informed real estate investment decisions requires understanding several key metrics:
- Cap Rate: The capitalization rate measures a property's potential return on investment. It's calculated by dividing the net operating income by the property value.
- Cash Flow: The difference between monthly rental income and expenses (including mortgage payments). Positive cash flow indicates a profitable investment.
- ROI (Return on Investment): Measures the total return relative to the investment cost, including appreciation, rental income, and tax benefits.
- Mortgage Payment: Your monthly loan payment including principal and interest. A lower payment means better cash flow potential.