Cap rate
NOI / purchase price
Ignores financing so properties can be compared cleanly.
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Mortgage calculator
Cap rate compares a rental property net operating income with its purchase price. The investor calculator also shows cash flow, cash-on-cash return, and DSCR.
NOI / purchase price
Ignores financing so properties can be compared cleanly.
annual cash flow / cash invested
Shows return on your actual down payment and cash outlay.
NOI / debt service
Helps estimate whether rent supports the mortgage payment.
It depends on city, property type, risk, and growth expectations. Higher cap rate is not always better if the property has more vacancy or repair risk.
No. Cap rate uses net operating income before financing. Use cash-on-cash return and DSCR to include financing.
This page links into the shared usecos calculator engine and cites CMHC rental market data.