Rental Property Calculator
Analyze cash flow, cap rate & return on investment instantly
How to Analyze a Rental Property Like a Pro
A rental property calculator helps you quickly evaluate whether an investment will generate positive cash flow. Instead of guessing, you can use key financial metrics to compare deals and avoid costly mistakes.
Key Metrics Explained
- Monthly Cash Flow: Rent minus all expenses (mortgage, taxes, insurance, maintenance, vacancy, management fees). This is the money that stays in your pocket each month.
- Annual Cash Flow: Monthly cash flow × 12. Gives you a yearly profit/loss view.
- Cash on Cash Return: Annual cash flow divided by total cash invested (down payment + closing costs). Measures the yield on your actual cash outlay.
- Cap Rate (Capitalization Rate): Net operating income (NOI) divided by property price. NOI is annual rental income minus operating expenses (excluding mortgage). It shows the property's unleveraged return potential.
Common Benchmarks
| Metric | Good | Great |
|---|---|---|
| Cash on Cash Return | 8–12% | >12% |
| Cap Rate | 5–8% | >8% |
| Monthly Cash Flow (per unit) | $100–$200 | >$200 |
Tips for Using This Calculator
Be realistic with expenses. Underestimating vacancy (5–8% is common) or maintenance (set aside 10–15% of rent) can lead to negative surprises. Always include property management fees even if you plan to self‑manage — your time has value.
Adjust the down payment. A higher down payment reduces your mortgage and increases cash flow, but also ties up more capital. Use the calculator to find the sweet spot where cash‑on‑cash return stays attractive.
This tool is updated regularly to reflect current market conditions. Bookmark it and use it for every deal you analyze!
