How to use the Rental Property Calculator
The rental property calculator estimates cash flow, cap rate and cash-on-cash return for an investment home.
Open the Rental Property Calculator →
What you need to enter
- Purchase price ($)
- Down payment (%)
- Mortgage rate (%)
- Term (years)
- Monthly rent ($)
- Vacancy (%)
- Operating costs (% of rent)
- Property tax + insurance ($ / year)
The formula
NOI = rent after vacancy − operating costs − tax and insurance. Cap rate = NOI ÷ price. Cash-on-cash = annual cash flow ÷ cash invested.
Worked example
Using the default values in the calculator:
- Purchase price ($): 250000
- Down payment (%): 25
- Mortgage rate (%): 7
- Term (years): 30
- Monthly rent ($): 2200
- Vacancy (%): 5
- Operating costs (% of rent): 35
- Property tax + insurance ($ / year): 4200
| Annual cash flow | -$3,329.31 |
| Monthly cash flow | -$277.44 |
| Net operating income | $11,640.00 |
| Cap rate | 4.66% |
| Cash-on-cash return | -5.33% |
Tips for better results
- Include a vacancy and repairs allowance.
- Compare cap rates in the same area.
Common mistakes to avoid
- Using full rent without vacancy.
- Ignoring capital expenditures.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.