Analyze a rental property: cash flow, cap rate, cash-on-cash return and long-term profit.
Income
Operating expenses
Growth & exit
| Year | Rental income | NOI | Cash flow | Loan balance | Property value | Equity |
|---|---|---|---|---|---|---|
| 1 | $27,360.00 | $17,752.00 | -$211.17 | $222,714.43 | $309,000.00 | $86,285.57 |
| 2 | $28,180.80 | $18,284.56 | $321.39 | $220,263.63 | $318,270.00 | $98,006.37 |
| 3 | $29,026.22 | $18,833.10 | $869.93 | $217,635.67 | $327,818.10 | $110,182.43 |
| 4 | $29,897.01 | $19,398.09 | $1,434.92 | $214,817.73 | $337,652.64 | $122,834.92 |
| 5 | $30,793.92 | $19,980.03 | $2,016.87 | $211,796.08 | $347,782.22 | $135,986.15 |
| 6 | $31,717.74 | $20,579.43 | $2,616.27 | $208,555.99 | $358,215.69 | $149,659.70 |
| 7 | $32,669.27 | $21,196.82 | $3,233.65 | $205,081.68 | $368,962.16 | $163,880.48 |
| 8 | $33,649.35 | $21,832.72 | $3,869.55 | $201,356.21 | $380,031.02 | $178,674.81 |
| 9 | $34,658.83 | $22,487.70 | $4,524.54 | $197,361.43 | $391,431.96 | $194,070.53 |
| 10 | $35,698.59 | $23,162.33 | $5,199.17 | $193,077.86 | $403,174.91 | $210,097.05 |
Please do not make financial decisions based on these results.
What is the Rental Property Calculator?
A rental property calculator estimates income, expenses, cash flow and returns for an investment property, including cap rate, cash-on-cash return and IRR over your holding period.
Measuring a rental property
Rental investors compare properties with a few standard ratios. Net operating income (NOI) is rent minus operating costs, before the mortgage. The cap rate divides NOI by price. Cash-on-cash return divides yearly cash flow by the cash you actually invested. Each answers a different question, so use more than one.
- Cap rate. Return on the price, ignoring financing. See the cap rate calculator.
- NOI. Income after operating costs. See the NOI calculator.
- Cash-on-cash. Return on your own cash. See the cash-on-cash calculator.
- Gross rent multiplier. A quick price-to-rent screen. See the GRM calculator.
Costs that are easy to forget
Vacancy, repairs, property management, insurance, property tax and capital replacements (roof, furnace) reduce the rent you actually keep. Use conservative figures for each and test a bad year, not only a good one. The rental property calculator puts the whole picture in one place.
Rent from the tenant’s side
Landlords often ask for income of about three times the rent; check it with the 3x rent calculator. For moves, partial months and increases, use the prorated rent calculator and the rent increase calculator.
How to use the Rental Property Calculator
- Enter your numbers. The inputs are Purchase price ($), Down payment (%), Mortgage rate (%), Loan term (years), Closing costs ($), Repairs / rehab ($), Monthly rent ($). Use figures from a lender quote or your tax bill where you have them, and keep the term and rate realistic. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Year-1 cash flow, and the cards below show Monthly cash flow, Net operating income (NOI), Cap rate. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Rental Property Calculator using the default values shown in the calculator above:
Inputs
| Purchase price ($) | 300,000 |
|---|---|
| Down payment (%) | 25 |
| Mortgage rate (%) | 7 |
| Loan term (years) | 30 |
| Closing costs ($) | 6,000 |
| Repairs / rehab ($) | 5,000 |
| Monthly rent ($) | 2,400 |
| Vacancy (% of rent) | 5 |
| Property tax ($ per year) | 3,600 |
| Insurance ($ per year) | 1,400 |
| Maintenance (% of rent) | 8 |
| Property management (% of rent) | 8 |
| Rent & expense growth (% per year) | 3 |
| Property value growth (% per year) | 3 |
Results
| Year-1 cash flow | -$211.17 / yr |
|---|---|
| Monthly cash flow | -$17.60 |
| Net operating income (NOI) | $17,752.00 |
| Cap rate | 5.92% |
| Cash invested | $86,000.00 |
| Cash-on-cash return | -0.25% |
| Debt service coverage | 0.99× |
| Gross rent multiplier | 10.4 |
| 1% rule (rent ÷ price) | 0.8% |
With these inputs the calculator returns Year-1 cash flow: -$211.17 / yr. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Rental Property Calculator reports Year-1 cash flow, monthly cash flow, net operating income (noi), cap rate, cash invested, cash-on-cash return and debt service coverage. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a good cap rate?
It depends on the market and risk. Many investors look for roughly 5% to 10%.
What is cash-on-cash return?
Annual pre-tax cash flow divided by the cash you invested (down payment, closing costs and repairs).
Are property tax, insurance and PMI included?
Yes, this calculator includes property tax and home insurance. Enter your own local figures because they vary by county, insurer and lender.
What is included in a monthly mortgage payment?
Principal and interest, plus property tax, homeowners insurance, PMI if your down payment is under 20%, and HOA fees if they apply.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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