Cap Rate (Capitalization Rate) measures the property's natural profitability without considering debt. It is calculated as Net Operating Income / Purchase Price. It helps you compare the quality of different properties.

ROI (Cash on Cash Return) measures your specific return based on the cash you invested. It factors in your mortgage, down payment, and closing costs. This is the most important metric for investors using leverage.

While this varies by market and strategy, most professional investors look for a Cash on Cash return of 8% to 12%.

• 8-10%: Considered a solid, safe return in stable markets.
• 12%+: Excellent return, often found in riskier markets or properties needing renovation (BRRRR).
• Below 6%: Generally considered low unless the property is in a high-appreciation area (like California or NYC).

Yes. By default, the calculator estimates closing costs at approximately $5,000 and adds this to your total cash invested. This ensures your ROI calculation is realistic and accounts for the money you actually spend upfront.

No! The Pro plan is a one-time payment of $19. You get lifetime access to the Portfolio Comparison tool, unlimited property saves, and PDF exports. There are no recurring monthly fees.