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Rental Property Calculator

Analyze rental property investments with comprehensive calculations for cash flow, ROI, cap rate, and long-term returns.

Purchase Details

$50,000

Total Investment

$67,500

Income & Expenses

Laundry, parking, storage, etc.

Projections

Monthly Cash Flow

Net Monthly Cash Flow

$7.464

Income

Gross Rent:$2,200
Vacancy Loss:-$176
Effective Income:$2,024

Expenses

Mortgage:$1,264.136
Operating:$752.4
Total Expenses:$2,016.536

Investment Metrics

Cap Rate

6.10%

Cash-on-Cash

0.13%

Gross Yield

10.56%

Expense Ratio

37.2%

Net Operating Income (NOI)

$15,259.2/year

5-Year Projection

Total Cash Flow:$4,908
Property Value:$289,819
Total ROI:85.2%

Expense Breakdown

Cash Flow & Equity Projection

Annual Cash Flow by Year



What is Rental Property Calculator?

Understanding Rental Property Investment

Rental property investing can provide steady income and long-term wealth building through cash flow, appreciation, and mortgage paydown. This calculator helps you analyze the complete financial picture of a rental property investment.

Key Rental Property Metrics

Cap Rate

Net Operating Income divided by purchase price. Measures property profitability independent of financing.

Good: 8-12% | Excellent: 12%+

Cash-on-Cash Return

Annual cash flow divided by total cash invested. Shows actual return on your money.

Good: 8-12% | Excellent: 12%+

Gross Yield

Annual rent divided by purchase price. Quick measure of rental income potential.

Average: 6-8% | Good: 8-10%

Expense Ratio

Operating expenses as percentage of effective income. Lower is better.

Good: 40-50% | Excellent: <40%

The 1% and 2% Rules

1% Rule

Monthly rent should be at least 1% of purchase price for positive cash flow.

Example: $250,000 property = $2,500/month minimum rent

2% Rule

Monthly rent of 2% of purchase price indicates strong cash flow potential.

Example: $250,000 property = $5,000/month rent (rare but excellent)

Operating Expenses to Budget

Fixed Costs

  • Property taxes (1-2% of property value)
  • Insurance ($800-1,500/year)
  • HOA fees (varies)
  • Property management (8-12% of rent)

Variable Costs

  • Maintenance (1% of property value/year)
  • Vacancy (budget 5-10% of gross rent)
  • Utilities (if landlord-paid)
  • CapEx reserves (roof, HVAC, etc.)

Three Profit Centers

1. Cash Flow

Monthly income after all expenses. Provides immediate return and lifestyle income.

2. Appreciation

Property value increase over time (historically 3-4% annually).

3. Mortgage Paydown

Tenant pays down your mortgage, building equity each month.



FAQ - Rental Property Calculator

$200-300/month per door is considered good cash flow. However, this varies by market. Some investors target $100/month minimum, while others in expensive markets may accept break-even for appreciation. Calculate cash-on-cash return for better comparison across properties.