Rental Property Calculator
Get a complete monthly cash flow and annual ROI analysis for your rental property — including vacancy loss, operating expenses, and mortgage debt service.
Understanding Your Rental Property Numbers
- Gross Yield: Annual rent ÷ property value. Quick snapshot of income relative to value.
- Net Operating Income (NOI): Effective income minus operating expenses (not including mortgage). Used to calculate cap rate.
- Cap Rate: NOI ÷ property value. Benchmark for property profitability, independent of financing.
- Cash-on-Cash (CoC) Return: Annual cash flow ÷ total cash invested. Measures return on your actual equity invested.
- Monthly Cash Flow: What remains after ALL expenses including mortgage. Positive cash flow means the property earns more than it costs.
Rule of thumb: A monthly cash flow of $100–$200 per unit is a common minimum target for buy-and-hold investors.
Frequently Asked Questions
What is a good monthly cash flow for a rental property?
Many investors target a minimum of $100–$200/month per unit, but this varies by market. In high-appreciation markets, investors may accept lower or even negative cash flow if strong appreciation is expected.
What is the 1% rule for rental properties?
The 1% rule says monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for at least $2,000/month. It is a quick screening tool, not a definitive analysis.
Should I include my mortgage in the cap rate calculation?
No. Cap rate intentionally excludes financing to measure property profitability independently of how it is financed. Use cash-on-cash return when you want to include mortgage payments.
What vacancy rate should I use?
5–10% is a common default for residential properties. Check local market data — high-demand areas may see 2–3% while rural areas could be 10–15%.
What expenses am I likely missing?
Common overlooked costs: capital expenditure reserves (roof, HVAC — budget 5–10% of rent), utilities if you pay them, advertising/tenant placement, accountant fees, and legal costs.
Is this calculator free?
Yes — completely free, no login required, all calculations run locally.