Rental Property Calculator
Analyze rental property returns including cash flow, cap rate, and ROI.
Result
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Examples
Single-Family Rental at $250,000 Purchase Price
You buy a $250,000 rental property with 25% down ($62,500) and a $187,500 mortgage at 7.0% for 30 years. Monthly rent is $1,900. After a 5% vacancy rate, operating expenses of $650/month (taxes, insurance, maintenance, management), and a $1,247 mortgage payment, your monthly cash flow is about $-$102. However, with $299/month in principal paydown, your total return is positive. Cap rate: 6.0%. Cash-on-cash return: -1.9%.
Duplex Generating Positive Cash Flow
You purchase a duplex for $350,000 with 20% down ($70,000), financing $280,000 at 6.75% for 30 years. Both units rent for $1,400/month ($2,800 total). After 5% vacancy, $1,050/month in operating expenses, and a $1,816 mortgage payment, net monthly cash flow is about $-$196. Factoring in $440/month in principal paydown and 3% annual appreciation, your first-year total ROI is approximately 8.2%.
Frequently Asked Questions
What is a good cap rate?
Cap rates vary by market and property type. Generally, 4-6% is common in stable urban markets, while 7-10% may be found in higher-risk areas. A higher cap rate means higher potential return but often more risk.
What is cash-on-cash return?
Cash-on-cash return measures the annual pre-tax cash income earned on the cash invested. It considers only the actual cash flow relative to your out-of-pocket investment (down payment + closing costs).
How is vacancy rate used?
The vacancy rate reduces your gross rental income to estimate realistic income. A 5% vacancy means roughly 2-3 weeks per year without a tenant. Higher rates should be used in markets with less demand.
Result
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Quick Tips
Double check your inputs. Ensure units match (e.g., inches vs cm).
Did you know?
Calculators are estimates. Consult professionals for critical decisions.