Rental Property Calculator
Analyze rental property investments with comprehensive cash flow analysis, cap rate, cash-on-cash return, and multi-year ROI projections including appreciation and equity buildup.
Purchase Details
Rental Income
Operating Expenses
Projections
Monthly Cash Flow
-$9,290/year
Quick Analysis
Investment Summary
| Down Payment | $75,000 |
| Closing + Repairs | $19,000 |
| Total Cash Invested | $94,000 |
Monthly Breakdown
| Effective Rent | +$2,090 |
| Mortgage (P&I) | -$1,497 |
| Property Tax | -$300 |
| Insurance | -$150 |
| Maintenance | -$750 |
| Property Management | -$167 |
| Cash Flow | -$774 |
10-Year Projection
| Year | Property Value | Cash Flow | Equity |
|---|---|---|---|
| Year 1 | $309,000 | -$9,206 | $86,286 |
| Year 3 | $327,818 | -$9,046 | $110,182 |
| Year 5 | $347,782 | -$8,895 | $135,986 |
| Year 7 | $368,962 | -$8,755 | $163,880 |
| Year 9 | $391,432 | -$8,628 | $194,071 |
| Year 10 | $403,175 | -$8,570 | $210,097 |
Total Return (After 10 Years)
Rental Property Metrics
Cap Rate
NOI ÷ Purchase Price. Measures return without financing. Good cap rates: 5-10% depending on market. Higher = more cash flow, but often more risk or worse location.
Cash-on-Cash Return
Annual Cash Flow ÷ Total Cash Invested. Measures return on your actual cash. Target 8-12%+. This is often more relevant than cap rate for leveraged investments.
The 1% Rule
Monthly rent should be ≥1% of purchase price. A $300,000 property should rent for $3,000+/month. This is a quick screening tool, not a guarantee of profitability.
Frequently Asked Questions
Key Rental Property Metrics
| Metric | Formula | Good Target |
|---|---|---|
| Cap Rate | NOI ÷ Price | 5-10% |
| Cash-on-Cash | Cash Flow ÷ Cash Invested | 8-12%+ |
| 1% Rule | Rent ÷ Price | ≥1% |
| DSCR | NOI ÷ Debt Service | ≥1.25 |
Common Operating Expenses
- Vacancy: 5-10% of rent
- Property taxes: Varies by location
- Insurance: ~0.5% of value/year
- Maintenance: 1-3% of value/year
- Property management: 8-10% of rent
- CapEx reserves: 5-10% of rent
The 50% Rule
A quick estimate: operating expenses (not including mortgage) will be about 50% of gross rent. If rent is $2,000, expect ~$1,000 in expenses, leaving $1,000 for mortgage and cash flow.
Sources of Return
- Cash flow: Monthly income after expenses
- Appreciation: Property value increase
- Loan paydown: Tenants pay your mortgage
- Tax benefits: Depreciation, deductions