Estimate cash flow, cap rate and returns on a rental property.
A ₹80,00,000 flat renting at ₹40,000 a month, bought with 25% down at 8.5%, has a cap rate near 4.81% and an annual cash flow of −₹2,39,832.73 after the loan EMI.
A rental property earns income but has a loan and running costs. Enter the price, down payment, loan terms, monthly rent, vacancy, property tax, insurance and maintenance. The calculator works out net operating income (NOI), the loan's yearly cost, the annual and monthly cash flow, the cap rate, gross rental yield, cash-on-cash return and debt service coverage ratio.
Rental yields in many Indian cities are only 2–4%, below home-loan rates, so cash flow can be negative while you rely on price growth. Appreciation, tax and exit costs are not modelled. Compare with other returns using the ROI Calculator and IRR Calculator, and see Rent vs Buy.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Gross yearly rent | ₹4,80,000.00 |
| After vacancy | ₹4,56,000.00 |
| Operating expenses | ₹71,000.00 |
| Net operating income (NOI) | ₹3,85,000.00 |
| Loan EMI (monthly) | ₹52,069.39 |
| Debt service (yearly) | ₹6,24,832.73 |
| Annual cash flow | −₹2,39,832.73 |
| Monthly cash flow | −₹19,986.06 |
| Cap rate (NOI ÷ price) | 4.81% |
| Gross rental yield | 6% |
| Cash-on-cash return | -11.99% |
| Debt service coverage ratio | 0.62 |
| Case | Annual cash flow |
|---|---|
| Rent ₹30,000 | −₹3,41,832.73 |
| Rent ₹40,000 | −₹2,39,832.73 |
| Rent ₹60,000 | −₹35,832.73 |
| Down payment 40% | −₹1,14,866.18 |
| Vacancy 10% | −₹2,63,832.73 |
Net operating income divided by the property price — a measure of the property's return ignoring financing.
Annual cash flow after loan payments divided by the cash you invested (the down payment).
Debt service coverage ratio: NOI divided by yearly loan payments. Lenders usually want at least 1.2.
It varies by market. Gross yields of 5% or more are considered healthy; many Indian cities offer less.
If rent is low relative to price and the EMI is high, the rent does not cover the loan and costs, and returns depend on price growth.
Income tax, appreciation, one-off repairs, selling costs and loan prepayment effects.
It uses the standard formula: cap rate = NOI ÷ price cash-on-cash = annual cash flow ÷ cash invested The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
