Free Rental Property Calculator
Calculate your rental property's ROI, cash flow, cap rate and more. Input your numbers and get instant results — no signup required.
Property Details
Purchase
Income
Expenses
Growth
Monthly Cash Flow
-$347
-$4,161/yr
Cap Rate
5.0%
NOI / Purchase Price
Cash-on-Cash Return
-6.9%
Annual Cash Flow / Cash Invested
NOI
$15,000
Net Operating Income/yr
DSCR
0.78
Risky — income doesn’t cover debt
Break-Even Occupancy
N/A
Expenses exceed max income
Loan Summary
Down Payment
$60,000
Loan Amount
$240,000
Monthly Mortgage
$1,597
Monthly Expense Breakdown
5-Year Projection
| Year | Property Value | Equity | Cash Flow | Cumulative | Total ROI |
|---|---|---|---|---|---|
| 1 | $309,000 | $71,438 | -$4,161 | -$4,161 | 12.1% |
| 2 | $318,270 | $83,322 | -$4,161 | -$8,321 | 25.0% |
| 3 | $327,818 | $95,673 | -$4,161 | -$12,482 | 38.6% |
| 4 | $337,653 | $108,514 | -$4,161 | -$16,643 | 53.1% |
| 5 | $347,782 | $121,866 | -$4,161 | -$20,804 | 68.4% |
How to Use This Rental Property Calculator
Enter your property's purchase price, down payment, loan terms, expected rental income, and operating expenses. The calculator instantly computes your monthly cash flow, cap rate, cash-on-cash ROI, net operating income (NOI), debt service coverage ratio (DSCR), and a 5-year projection showing equity growth and cumulative returns.
What is Cap Rate?
Capitalization rate (cap rate) measures a property's annual net operating income as a percentage of its purchase price. A higher cap rate indicates a potentially higher return, but also higher risk. Most rental properties fall between 4% and 10%. Cap rate = NOI / Purchase Price.
What is Cash-on-Cash ROI?
Cash-on-cash return measures the annual cash flow relative to the total cash you invested (your down payment plus closing costs). It shows the actual return on the money you put in, making it one of the most practical metrics for comparing leveraged real estate investments.
Understanding DSCR
The Debt Service Coverage Ratio measures whether your property's income can cover its debt payments. A DSCR of 1.25 or higher is generally considered healthy — it means your property generates 25% more income than needed to pay the mortgage. Lenders often require a minimum DSCR of 1.2 for investment property loans.
Frequently Asked Questions
What is a good cap rate for a rental property?
A "good" cap rate depends on your market and risk tolerance. Generally, 5-8% is considered solid for residential rentals. Higher cap rates (8-12%) suggest higher returns but often come with more risk or lower-quality markets.
How much should I budget for maintenance?
A common rule of thumb is 8-12% of monthly rent. Older properties or those with more amenities may need 15% or more. Our calculator defaults to 10% as a reasonable starting point.
What vacancy rate should I use?
5-8% is typical for most markets. In high-demand urban areas, 3-5% may be realistic. In markets with more turnover, plan for 8-10%. Check your local market data for the most accurate estimate.
Does this calculator include closing costs?
Closing costs are not included in the base calculation. Since closing costs are a one-time expense (typically 2–5% of the purchase price), the most accurate approach is to add them to your down payment amount when evaluating cash-on-cash return — this reflects the true total cash you invested in the deal.
Looking to analyze a short-term rental instead? Try our Airbnb Calculator