Rental Property Calculator
Analyze a rental before you buy. Enter the price, financing, rent and expenses to see monthly cash flow, net operating income, cap rate, cash-on-cash return and how the deal stacks up against the 1% rule.
Purchase & financing
Income
Expenses
Monthly cash flow
How to analyze a rental property
- Enter the purchase price, down payment, loan terms, closing costs and any upfront repairs.
- Enter the expected rent and a vacancy allowance (5–8% is common, roughly 3–4 weeks a year).
- Enter taxes, insurance and HOA, plus percentage allowances for maintenance, capital reserves (roof, HVAC, appliances) and management, even if you plan to self-manage.
The key rental property numbers
Net operating income (NOI) is rent minus vacancy and operating expenses, before the mortgage. Cap rate is NOI divided by the purchase price; it describes the property itself regardless of financing and lets you compare deals. Cap rates of roughly 5–10% are common, with lower rates in expensive, stable markets.
Cash flow is NOI minus the mortgage payment: what actually lands in your pocket each month. Cash-on-cash return is annual cash flow divided by the cash you put in (down payment, closing costs and repairs), so you can compare it with other investments. Many investors look for 8% or more.
The 1% rule is a quick screen: monthly rent should be at least 1% of the price. It is a rough filter, not a verdict; in many markets good long-term properties fall below it. The most common mistake new landlords make is underestimating expenses, so keep maintenance and capital reserve allowances realistic.
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Frequently asked questions
What is a good cap rate?
It depends on the market and property type. 5–10% is a typical range; higher cap rates usually mean higher risk or less desirable areas.
What is a good cash-on-cash return?
Many investors target 8–12%. Compare it with what the same cash could earn elsewhere.
Should I include property management if I self-manage?
It is wise to. It shows whether the deal still works if you ever hire a manager, and it values your time.
Does this include appreciation or tax benefits?
No. It focuses on cash flow. Appreciation, loan paydown and depreciation add to the total return.