Rental Property Calculator
Calculate rental property investment returns including cash flow, cap rate, and ROI
Calculate with Rental Property Calculator
Purchase
Recurring Operating Expenses
Income
Sell
For the 20 Years Invested
First Year Income and Expense
| Monthly | Annual | |
|---|---|---|
| Income | $2,000 | $24,000 |
| Mortgage Pay | $959.28 | $11,511 |
| Vacancy (5%) | $100.00 | $1,200 |
| Property Tax | $250.00 | $3,000 |
| Insurance | $100.00 | $1,200 |
| Maintenance | $166.67 | $2,000 |
| Other Cost | $41.67 | $500 |
| Cash Flow | $382.39 | $4,589 |
| Net Operating Income (NOI) | $1341.67 | $16,100 |
First Year Expense Breakdown
Breakdown Over Time
| Year | Annual Income | Mortgage | Expenses | Cash Flow | Cash on Cash | Equity | If Sold at Year End | |
|---|---|---|---|---|---|---|---|---|
| Return | Accumulated | Cash to Receive | Return (IRR) | |||||
| Begin | -$46,000 | |||||||
| 1. | $22,800 | $11,511 | $6,700 | $4,589 | 9.98% | $47,965 | $31,485 | -21.58% |
| 2. | $23,484 | $11,511 | $6,901 | $5,072 | 21.00% | $56,231 | $39,256 | 3.28% |
| 3. | $24,189 | $11,511 | $7,108 | $5,569 | 33.11% | $64,811 | $47,327 | 11.81% |
| 4. | $24,914 | $11,511 | $7,321 | $6,082 | 46.33% | $73,719 | $55,710 | 15.58% |
| 5. | $25,662 | $11,511 | $7,541 | $6,609 | 60.70% | $82,968 | $64,419 | 17.45% |
| 6. | $26,431 | $11,511 | $7,767 | $7,153 | 76.25% | $92,574 | $73,469 | 18.43% |
| 7. | $27,224 | $11,511 | $8,000 | $7,713 | 93.01% | $102,552 | $82,874 | 18.94% |
| 8. | $28,041 | $11,511 | $8,240 | $8,290 | 111.03% | $112,918 | $92,650 | 19.19% |
| 9. | $28,882 | $11,511 | $8,487 | $8,884 | 130.35% | $123,690 | $102,814 | 19.30% |
| 10. | $29,749 | $11,511 | $8,742 | $9,495 | 150.99% | $134,886 | $113,383 | 19.31% |
| 11. | $30,641 | $11,511 | $9,004 | $10,126 | 173.00% | $146,524 | $124,377 | 19.27% |
| 12. | $31,561 | $11,511 | $9,274 | $10,775 | 196.42% | $158,625 | $135,813 | 19.20% |
| 13. | $32,507 | $11,511 | $9,553 | $11,443 | 221.30% | $171,209 | $147,712 | 19.11% |
| 14. | $33,483 | $11,511 | $9,839 | $12,132 | 247.68% | $184,298 | $160,097 | 19.01% |
| 15. | $34,487 | $11,511 | $10,134 | $12,841 | 275.59% | $197,915 | $172,988 | 18.91% |
| 16. | $35,522 | $11,511 | $10,438 | $13,572 | 305.10% | $212,085 | $186,410 | 18.80% |
| 17. | $36,587 | $11,511 | $10,752 | $14,324 | 336.24% | $226,832 | $200,387 | 18.70% |
| 18. | $37,685 | $11,511 | $11,074 | $15,099 | 369.06% | $242,185 | $214,946 | 18.60% |
| 19. | $38,815 | $11,511 | $11,406 | $15,898 | 403.62% | $258,169 | $230,113 | 18.51% |
| 20. | $39,980 | $11,511 | $11,748 | $16,720 | 439.97% | $274,817 | $245,919 | 18.42% |
| Total | $612,645 | $230,227 | $180,032 | $202,386 | 439.97% | 18.42% | ||
Assumptions
Use Rental Property Calculator for housing-cost and ownership planning when you need a clear estimate, transparent inputs, and a result you can review before taking the next step.
Worked example
When To Use Rental Property Calculator
- Start with a representative scenario in Rental Property Calculator so rates, dates, balances, or other key assumptions match the question you are comparing.
- Review whether the estimate matches the planning scenario before you use it for a budget, plan, or discussion.
Sample Input And Output Checks
- Start with inputs that match the real scenario, not only a rounded placeholder.
- Review home price, rent growth, closing costs, property tax, insurance, and time horizon before trusting the output.
- Confirm lender quotes, tax bills, HOA terms, and local market assumptions before using an estimate for a real housing decision.
About This Tool
Our rental property calculator helps compare rental scenarios by estimating cash flow, cap rate, cash-on-cash return, and total ROI from the inputs you provide. Use the results as planning estimates, not investment advice. For a broader view of investment performance, use our ROI Calculator to compare real estate assumptions against other investment options.
Understanding Cap Rate
Capitalization rate (cap rate) measures a property's potential return by dividing net operating income (NOI) by purchase price. A 5% cap rate means the modeled NOI equals 5% of the purchase price before financing. Higher cap rates can reflect higher income, higher risk, different local markets, or different property quality. Use cap rate as one comparison input, not as a standalone investment recommendation. Cap rate does not account for mortgage financing.
Cash-on-Cash Return Explained
Cash-on-cash return measures annual pre-tax cash flow relative to cash invested, such as down payment and closing costs. It accounts for mortgage financing, so it can move differently from cap rate. A 10% cash-on-cash return means the modeled cash flow is $10,000 on $100,000 of invested cash before considering all tax and market effects. Compare this metric against financing assumptions, reserve needs, and local market risk.
Operating Expenses to Consider
Accurate expense projections are crucial for rental property analysis. Property taxes vary widely by location (0.5-2.5% of property value)—use our Property Tax Calculator to estimate costs in your target area. Insurance costs $800-2,000+ annually depending on coverage and location. Maintenance and repairs typically run 1% of property value annually. Property management fees are 8-12% of collected rent. Vacancy losses average 5-10% depending on market. Utilities, HOA fees, lawn care, and capital expenditure reserves also impact profitability. Underestimating expenses is the most common investor mistake.
Interpreting Calculator Results for Investment Decisions
Use this calculator's multiple metrics together to compare scenarios. Monthly cash flow shows whether modeled rent exceeds the expenses you entered, cap rate shows a property-level income ratio before financing, cash-on-cash return shows modeled cash flow relative to cash invested, and gross yield provides a rough screening ratio. Adjust inputs for vacancy, maintenance, financing, taxes, and insurance to stress-test assumptions. Results vary by local market, property condition, financing terms, taxes, and legal obligations, so verify important decisions with local data and qualified advice.