Rental Property Calculator
Analyze a rental property investment — cash flow, cap rate, and ROI all in one.
Monthly Cash Flow
-$206.42
Negative — property loses money
Investment Metrics
💡 Plain English: This property loses $206.42/month. You'd need higher rent, lower expenses, or a lower purchase price to break even. Consider negotiating the price or finding a property with better rental income.
About the Rental Property Calculator
A rental property can generate monthly income and build long-term equity, but only if the numbers work. This calculator brings together rental income, mortgage costs, taxes, insurance, and expenses to show whether a property is likely to be profitable.
How this calculator works
Enter the purchase price, down payment, loan terms, monthly rent, and estimated expenses (taxes, insurance, maintenance, vacancy). The calculator shows monthly cash flow, cap rate, and cash-on-cash return.
The math, in plain English
Monthly cash flow = rental income − (PITI + expenses + vacancy allowance). Cap rate = net operating income ÷ purchase price. Cash-on-cash return = annual cash flow ÷ cash invested.
Key terms
- •Cash flow — income left after all expenses and debt service
- •Cap rate — a property’s annual return ignoring financing
- •Cash-on-cash return — annual cash flow divided by your cash invested
Tips & things to know
- ✓Budget for vacancy and maintenance — they erode cash flow faster than new investors expect.
- ✓A property with negative cash flow can still pay off through appreciation, but carries more risk.
- ✓Compare the cap rate to other investments to judge whether the return justifies the risk.
Frequently asked questions
What is a good cash-on-cash return?+
Many investors target 8–12%, but acceptable returns depend on market, risk, and goals.
Should I count appreciation?+
Appreciation is speculative. Base your decision on cash flow and cap rate, and treat appreciation as a bonus.
This calculator is for educational purposes only and uses estimates. Always consult a licensed mortgage professional for advice specific to your situation.