MossMeter investor guide
Gross yield and cap rate describe property-level income before financing; cash-on-cash return focuses on an investor’s pre-tax cash flow after debt service. Choose based on whether you are screening property income or assessing cash tied up in a financed deal.
Use it as a quick rent-to-price screen before operating costs.
FormulaAnnual rent ÷ purchase price
MossMeter’s rental-yield calculator annualizes monthly rent by multiplying it by 12. Its net yield subtracts only the annual operating costs entered; it makes no separate vacancy or financing adjustment.
Open Rental Yield CalculatorUse it to compare property-level operating income before financing. Keep the assumptions behind annual NOI consistent across properties.
FormulaAnnual NOI ÷ property price
MossMeter’s cap-rate calculator accepts annual NOI and property price.
Open Cap Rate CalculatorUse it to assess an investor’s annual pre-tax cash flow after debt service against total cash invested. Debt service and cash invested make financing terms central to this measure.
FormulaAnnual pre-tax cash flow after debt service ÷ total cash invested
MossMeter does not currently calculate cash-on-cash return. Neither existing calculator models debt service or total cash invested.
Annual rent relative to purchase price, before costs for gross yield or after entered operating costs for net yield. Both are property-level measures before financing.
Annual net operating income (NOI) relative to property price. It compares property-level operating income before financing.
This is the key distinction between the two results.
Detailed breakdown
| Comparison | Rental yield | Cap rate |
|---|---|---|
| What each percentage represents | ||
| Income measureThis is the key distinction between the two results. | Annual rent, before costs for gross yield or after only entered operating costs for net yield. | Annual net operating income (NOI) after operating expenses, before debt service. |
| Price used | Purchase price | Property price |
| Question it answers | How does annual rent compare with purchase price, before or after the costs entered? | How does annual NOI compare with property price before financing? |
| Formulas and required inputs | ||
| Gross rental yield formula | (monthly rent × 12 ÷ purchase price) × 100 | Not used for cap rate |
| Net rental yield formula | ((monthly rent × 12 − annual operating costs) ÷ purchase price) × 100 | Not used for cap rate |
| Cap rate formula | Not used for rental yield | (annual NOI ÷ property price) × 100 |
| Required inputs | Purchase price, monthly rent and annual operating costs | Property price and annual NOI |
| Financing and adjustments | No separate vacancy or financing adjustment; net yield subtracts only entered annual operating costs. | No debt-service input; compare properties with consistent assumptions for annual NOI. |