Rental Property Calculator
The full deal analysis in one pass: enter the purchase, financing, rent, vacancy, and operating expenses, and get the three numbers investors actually compare — monthly cash flow, cash-on-cash return, and cap rate.
Deal analysis
Example: $220,000 at 20% down, $2,200 rent → $269.07/mo, 6.21% cash-on-cash.
The worked example, line by line
A $220,000 property with 20% down ($44,000) leaves a $176,000 loan at 7% over 30 years — $1,170.93 a month. Rent of $2,200 less a 5% vacancy allowance gives $2,090.00 of expected income; subtract $650 of operating expenses and the mortgage, and the deal clears $269.07 a month ($3,229 a year). Against $52,000 actually invested (down payment + closing + rehab), that is a 6.21% cash-on-cash return, and the property's $17,280 net operating income prices it at a 7.85% cap rate. Every figure is computed by the same tested engine as the calculator above.
Why three numbers, not one
Each metric answers a different question. Cash flow asks: does the property pay its own bills with margin to spare? Cash-on-cash asks: what does the money I actually put in earn? Cap rate asks: what does the property itself yield, ignoring financing — the number that lets you compare deals with different loans, or no loan at all. A strong deal usually looks good on all three; a deal that only looks good on one deserves a harder look at the assumptions. For the quick screen before this full analysis, see the 1% Rule Calculator.
The analysis is only as honest as the expenses
Most bad rental projections share one flaw: understated costs. Include a vacancy allowance, budget maintenance even for a renovated property (roofs age either way), count management even if you self-manage today (your time isn't free, and you may not always do it), and keep reserves for capital expenses. It's better to buy a deal that survives conservative inputs than to own one that only worked on optimistic ones.
Frequently asked questions
What counts as an operating expense?
Property tax, insurance, maintenance and repairs, property management, HOA dues, utilities you pay, and a reserve for big-ticket items (roof, HVAC). By convention operating expenses exclude the mortgage — that keeps the property’s own economics separate from how you financed it.
Why include a vacancy rate?
No rental is occupied 100% of the time. Between tenants, during repairs, or in a slow market, rent stops but expenses continue. A 5–8% vacancy allowance (about 2–4 weeks a year) keeps the projection honest; using 0% is the most common way rookie analyses overstate returns.
What is a good cash-on-cash return?
It depends on rates and the market. Many investors look for cash-on-cash in the 6–10% range on leveraged rentals, and compare it against what the same cash could earn elsewhere. A deal can also make sense below that when appreciation, loan paydown, and tax benefits carry more of the total return — this calculator shows only the cash-flow slice.
Does this include appreciation, loan paydown, or taxes?
No — deliberately. It measures current cash economics: what the property earns each month after real costs. Appreciation and principal paydown add long-term return, and depreciation deductions change your tax picture, but none of those pay this month’s bills. Analyze the cash flow first; treat the rest as upside.
Not financial advice: a general educational estimate. Real deals involve taxes, appreciation, financing terms, and local factors this model excludes — verify any deal with your own due diligence and qualified professionals. Values are processed locally in your browser and never transmitted. See the methodology page.