Rental Property Calculator

Analyze rental property investments. Calculate cash flow, cap rate, cash-on-cash return, and ROI with all expenses.
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Monthly Cash Flow

-$421.73

Annual Cash Flow

-$5,060.71

Cap Rate

4.70%

Cash-on-Cash Return

-7.33%

Net Operating Income

$14,100.00

Total Cash Invested

$69,000.00

Monthly Expense Breakdown

Mortgage (P&I)$1,596.73
Property Tax$300.00
Insurance$125.00
HOA$0.00
Vacancy Reserve$100.00
Property Management$200.00
Maintenance Reserve$100.00
Total Monthly Expenses$2,421.73

Use the Rental Property Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

A Rental Property Calculator helps real estate investors analyze the potential profitability of investment properties by calculating key metrics like cash flow, cap rates, and return on investment. With rental rates continuing to rise in 2026 and mortgage rates stabilizing around 6-7%, accurate financial analysis is crucial for making informed investment decisions.

The calculator uses the basic formula: Net Operating Income (NOI) = Gross Rental Income - Operating Expenses, then divides by total investment to determine capitalization rate. It also calculates cash-on-cash return by comparing annual cash flow to the initial cash invested, accounting for mortgage payments, taxes, insurance, and maintenance costs.

Common mistakes include underestimating vacancy rates (typically 5-10%) and maintenance costs (usually 1-2% of property value annually). Many investors also forget to factor in property management fees (8-12% of rent) and capital expenditures for major repairs, which can significantly impact actual returns.

$350,000 Single-Family Rental Property Analysis

  1. 1 Property purchase price: $350,000 with $70,000 down payment (20%) and monthly rent of $2,800, generating $33,600 in gross annual rental income.
  2. 2 Calculate operating expenses: Property taxes ($4,200), insurance ($1,800), maintenance ($3,500), vacancy allowance ($1,680), and property management ($2,688) totaling $13,868 annually.
  3. 3 Net Operating Income = $33,600 - $13,868 = $19,732. Monthly mortgage payment on $280,000 loan at 6.5% = $1,770 or $21,240 annually.
  4. 4 Annual cash flow = $19,732 - $21,240 = -$1,508 (negative cash flow). Cash-on-cash return = -2.2% on the $70,000 investment, indicating this property may not be profitable at current market conditions.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

What is a good cap rate for a rental property?
A cap rate of 5-10% is typical. Higher cap rates (8-10%) indicate higher returns but often come with more risk or lower-quality areas. Lower cap rates (4-6%) are common in expensive markets with more appreciation potential.
How do you calculate cash-on-cash return for rental property?
Divide annual pre-tax cash flow by the total cash invested (down payment plus closing costs plus rehab). If you invested $50,000 and earn $5,000 net annually, your cash-on-cash return is 10%.
What is the 1% rule in rental property investing?
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.

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