RentalCalcs · Original decision worksheet

Cap-rate comparison worksheet

Compare the income basis before deciding whether the cash works. Fill locally, then print or save as PDF. Nothing is submitted or automatically saved.

Read the complete worked guide

Worked example

The hypothetical $250,000 rental has $17,500 NOI, a 7% cap rate, $14,969 annual loan payments and a $2,500 annual replacement contribution. About $31 a year remains before income taxes.

1. Match the benchmark

Property, intended use, price or value and dateComparable property/source, observation date and geographyActual, projected or stabilized NOI; income period and reserve conventionAsking price, closed sale or professional estimate; comparability limits

2. Rebuild the annual budget

Scheduled income, vacancy, credit loss and other incomeBuyer taxes, insurance, repairs, management and other operations; evidenceLoan amount, rate, amortization, payment schedule and feesAnnual replacement contribution; separate from initial retained cash

3. Test your decision

NOI and cap rate; distinguish gross rent from net incomeFull cash commitment, including initial work and retained liquidityCash after debt and reserve; target and resulting funding gapDownside inputs, revised NOI/cash, available liquidity and next action

Calculation notes

Cap rate = annual NOI / price or value. Cash after reserve = NOI - full principal and interest - annual replacement contribution. At a fixed price and loan, required cap rate = (debt service + annual replacement contribution + annual cash target) / price. Our $250 monthly cash target needs approximately $20,469 NOI, or 8.2% at $250,000. Changing price requires recalculating the loan and invested cash too.

Reviewed October 14, 2026. Original RentalCalcs educational worksheet. Numbers are hypothetical, not property estimates or a lender commitment. J.P. Morgan: compare similar properties and consistent income assumptions.