Short-Term Rental Cash-on-Cash & Cap Rate Calculator

Evaluating a property to buy and run as a short-term rental? Enter price, financing and annual numbers.

How the calculation works

NOI = revenue − operating expenses (no mortgage). Cap rate = NOI ÷ price. Debt service = monthly mortgage payment × 12. Cash-on-cash = (NOI − debt service) ÷ cash invested (down payment + closing + furnishing). DSCR = NOI ÷ debt service.

Worked example

NOI €48,000 − €22,000 = €26,000 → cap rate 8.67%. Loan €225,000 at 6.5% over 30 years ≈ €1,422/month = €17,066/yr. Cash flow ≈ €8,934. Cash invested €75,000 + €9,000 + €15,000 = €99,000 → cash-on-cash ≈ 9.0%; DSCR ≈ 1.52.

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FAQ

What's the difference between cap rate and cash-on-cash?

Cap rate ignores financing and measures the property itself. Cash-on-cash measures the return on the cash you actually put in, after the mortgage.

What DSCR do lenders want?

Many DSCR lenders look for 1.0-1.25 or higher. Requirements vary by lender and country.

Should revenue be before or after platform fees?

Use revenue after platform fees, or include fees in operating expenses, but not both.