Rental Property ROI Formula
Cash-on-Cash ROI = (Annual Cash Flow / Total Cash Invested) x 100
Cap Rate = (NOI / Purchase Price) x 100
Typical rental property ROI benchmarks: 4–8% is solid, 8–12% is excellent, 12%+ is exceptional. Cap rates of 5–10% are typical depending on market.
Related: ROI Calculator | House Sale Profit Calculator