Rental Property Calculator
Analyze any rental deal in seconds — monthly cash flow, cash-on-cash return, cap rate, and NOI, with every real-world expense factored in.
Purchase
Income & Operating
Monthly Cash Flow
$191
$2,293/year
Cash-on-Cash Return
2.73%
Cap Rate
6.75%
Cash Invested
$84,000
Annual NOI
$20,256
1% Rule
0.80%
below
Gross Rent Multiplier
10.4x
Where the Rent Goes (monthly)
Smart Insights
Positive cash flow of $191/month ($2,293/year) after all expenses and the mortgage — the property pays for itself.
A 2.73% cash-on-cash return is low for a rental. Compare it against simply investing that cash elsewhere before committing.
Rent is 0.8% of price, below the "1% rule" guideline — common in appreciating markets. Cap rate is 6.75%; compare it to similar local rentals.
AI Financial Advisor
Get personalized insights and optimization tips based on your inputs.
How to Use This Calculator
Enter the purchase price, financing, and upfront cash (down payment, closing costs, rehab), then the monthly rent and every operating expense — vacancy, taxes, insurance, maintenance, management, and HOA. The calculator returns your monthly cash flow, cash-on-cash return, cap rate, NOI, and quick screens like the 1% rule and gross rent multiplier, updating as you adjust.
Analyze the Deal, Not the Dream
The fastest way to lose money in real estate is optimistic math. Always budget for vacancy and maintenance even if the property is currently rented and pristine — they are not optional over a full hold period. Run the numbers conservatively; a deal that only works with zero vacancy and no repairs is not a deal. Cash flow is what pays you while appreciation and equity build quietly in the background.
Frequently Asked Questions
What is cash-on-cash return?
Cash-on-cash return is your annual pre-tax cash flow divided by the total cash you invested (down payment + closing costs + rehab). It measures the return on the money you actually put in, unlike cap rate which ignores financing. Many investors target 8% or higher.
What is a cap rate?
The capitalization rate is net operating income (NOI) divided by the purchase price. NOI is rental income minus operating expenses, but excludes the mortgage. Cap rate lets you compare properties independent of how they are financed; typical ranges are 4–10% depending on the market.
What operating expenses should I include?
Property tax, insurance, maintenance and capital expenditures, vacancy loss, property management, and HOA. A common mistake is ignoring vacancy and maintenance — budget roughly 5–10% of rent for each so your numbers survive reality.
What is the 1% rule?
The 1% rule is a quick screen: monthly rent should be at least 1% of the purchase price. A $300,000 property should rent for ~$3,000/month. It is only a first filter — always run the full cash-flow numbers before deciding.
Does this include appreciation and tax benefits?
No — this focuses on cash flow and cash-on-cash return. Appreciation, loan paydown (equity), and tax advantages like depreciation add to your total return but are not guaranteed, so analyzing cash flow first keeps you grounded.