Multifamily ROI Calculator

About This Calculator

This calculator helps real estate investors evaluate the potential returns of multifamily property investments. Whether you're considering your first duplex or a larger apartment complex, this tool will help you make data-driven investment decisions.

What You Can Calculate

  • Net Operating Income (NOI) and Cash Flow
  • Cap Rate and Cash on Cash Return
  • Total Return on Investment (ROI)
  • Price and Rent per Unit Metrics

How to Use This Calculator

1

Enter Property Information

Input the purchase price and down payment percentage. This will determine your financing needs.

2

Add Unit Details

Specify the number of units and expected monthly rent per unit. Be realistic with your rental estimates.

3

Set Operating Assumptions

Enter expected vacancy rate and operating expenses. Consider all costs including maintenance, utilities, and management.

4

Input Financing Terms

Add your expected mortgage rate and term. These will impact your monthly payments and cash flow.

Understanding the Results

Cap Rate

Net operating income divided by property value. A higher cap rate typically indicates better potential returns, but may also suggest higher risk.

Cash on Cash Return

Annual cash flow divided by total cash invested. Shows your actual cash yield on the money you've invested.

Net Operating Income

Total income after operating expenses but before mortgage payments. Key indicator of property's operational performance.

Total ROI

Combined return including cash flow and property appreciation. Helps compare different investment opportunities.

Pro Tips

  • Research local market rents and vacancy rates for accurate inputs
  • Consider seasonal fluctuations in occupancy and operating costs
  • Include a maintenance reserve in your operating expense calculations
  • Compare results with similar properties in the area

Calculate Returns

Property Details

Total cost to acquire the property

Percentage of purchase price paid upfront

%

Unit Information

Total number of rental units in the property

Average monthly rent per unit

Operating Metrics

Expected percentage of vacant units annually

%

Operating expenses as percentage of effective gross income

%

Financing Details

Annual interest rate on the mortgage

%

Length of mortgage in years

years