Rental Property Calculator
Before you buy that rental, know the numbers. This calculator shows cash flow, cap rate, cash-on-cash return, and total ROI — so you can tell a good deal from a money pit.
Rental Property ROI Calculator
Analyze cash flow, cap rate, and return on investment for rental properties
Expense Breakdown (Annual)
This calculator uses the standard amortization formula for mortgage payments. Expenses are estimated using common industry percentages. It does not include closing costs, HOA fees, capital expenditure reserves, or potential tax benefits. Consult a real estate professional for precise analysis.
Frequently Asked Questions
What is a good cap rate for rental properties?+
A "good" cap rate is typically 5-10%, depending on the market. In high-cost areas (NYC, SF), 3-5% is common. In affordable markets (Midwest, South), 8-12% is achievable. Higher cap rate = higher return but often higher risk or less appreciation.
How do I calculate cash flow on a rental property?+
Monthly rent minus: mortgage payment (PITI), property management (8-12% of rent), maintenance reserve (5-10%), vacancy allowance (5-8%), insurance, property taxes, and HOA fees. Positive cash flow means the property pays you every month. Most investors target $200-500/month minimum.
What is cash-on-cash return?+
Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested (down payment + closing costs + initial repairs). It measures how hard your invested cash is working. A 8-12% cash-on-cash return is considered good. Below 5% and you're better off in index funds.
What is a good cap rate for rental properties?
A "good" cap rate is typically 5-10%, depending on the market. In high-cost areas (NYC, SF), 3-5% is common. In affordable markets (Midwest, South), 8-12% is achievable. Higher cap rate = higher return but often higher risk or less appreciation.