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Rental Property Calculator

Analyse a rental property: monthly cash flow, cap rate and cash-on-cash return.

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Advanced Rental Property UI

Complete cash flow and Cap Rate analysis

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About the Rental Property Calculator

Analyse a rental property: monthly cash flow, cap rate and cash-on-cash return.

How to use the Rental Property Calculator

  1. Enter the Property Purchase Price, Initial Cash Investment and Monthly Gross Rent.
  2. Enter Monthly Mortgage Pmt (P&I), Property Tax, Insurance, HOA Fees and Maintenance / Repairs (%).
  3. Press Calculate.

Formula and method

NOI = rent − operating expenses (not including the mortgage). Cap rate = annual NOI ÷ price. Cash flow = NOI − mortgage payment. Cash-on-cash return = annual cash flow ÷ cash invested.

Worked example

A $250,000 property renting for $2,000 a month with $600 a month of expenses has NOI of $16,800 a year, a 6.7% cap rate. After a $1,000 mortgage payment, cash flow is $400 a month, so with $60,000 invested the cash-on-cash return is 8%.

Tips

  • Allow for vacancies and repairs. 5 to 10 percent of rent each is common.
  • A positive cash flow gives a buffer if costs rise.

Frequently asked questions

What is a good cap rate?
It varies by market. Many investors look for 5 to 10 percent, with higher rates usually meaning higher risk.