Rental Property Calculator
Adjust the inputs below. Results update as you type.
How it works
Enter purchase price, down payment, mortgage terms, expected rent, vacancy rate, and operating expenses. Cap rate = NOI / total property value (financing-independent). Cash-on-cash = annual pre-tax cash flow / total cash invested (financing-dependent). GRM = price / annual gross rent; lower = better value. Model multiple scenarios (conservative, moderate, optimistic) before committing.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
Monthly cash flow = rent − mortgage − taxes − insurance − maintenance − vacancy − management. Annual cash-on-cash return = yearly cash flow ÷ total cash invested.
Worked example
Rent of $2,000 minus $1,500 in combined costs leaves $500/month, or $6,000/year. On $60,000 invested (down payment plus costs), that is a 10% cash-on-cash return.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
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Frequently asked questions
What expenses do new investors forget?+
Vacancy, maintenance, capital repairs (roof, HVAC), and property management. Ignoring these makes a property look far more profitable than it is.
What is a good cash-on-cash return?+
Many investors target 8% or more, but it varies by market and risk. Appreciation and tax benefits add to total return beyond cash flow.
Should I self-manage?+
Self-managing saves the management fee but takes time and effort. Budget 8–10% of rent if you plan to hire a manager.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.