Free Calculator

Free Rental Property Calculator

Enter your purchase price, financing terms, rent, and expenses to instantly calculate monthly cash flow, cash-on-cash return, cap rate, and gross rent multiplier. No signup required — your inputs are saved in the URL so you can bookmark or share any analysis.

Property Details

Purchase & Financing
$
%

Conventional investment loans typically require 20–25%

%
yrs
Rental Income
$
%

National average is ~5–8%

Expenses
% of rent

Budget 1% of property value per year for older properties

% of rent

Typical range: 8–12%. Set to 0 if self-managing.

$
$

Results update instantly. Share this analysis by copying the page URL — your inputs are saved in it.

Analysis Results

Cash Flow

Monthly Cash Flow

$123

Annual Cash Flow

$1,479

Returns

Cash-on-Cash Return

3.36%

Based on down payment + closing costs

Cap Rate

7.13%

NOI ÷ purchase price

Gross Rent Multiplier

9.3x

Lower is better; <10 is favorable

Net Operating Income

$14,252

Annual, before debt service

Financing

Monthly Mortgage

$1,064

P&I only

Loan Amount

$160,000

Down Payment

$40,000

Total Cash Invested

$44,000

Down payment + ~2% closing costs

Annual Income Breakdown

Gross Rental Income$21,600
Effective Gross Income$20,520
Operating Expenses($6,268)
Net Operating Income$14,252
Annual Debt Service($12,774)
Annual Cash Flow$1,479

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How to Use This Rental Property Calculator

  1. 1

    Enter the purchase price and financing terms

    Input the agreed purchase price, your down payment percentage, your mortgage interest rate, and the loan term. The calculator derives your loan amount and monthly payment automatically.

  2. 2

    Input your projected rental income

    Enter the monthly rent you expect to charge. Then set a vacancy rate — we suggest 5% as a starting point. The calculator applies the vacancy rate to arrive at effective gross income.

  3. 3

    Fill in operating expenses

    Enter maintenance and CapEx as a percentage of rent (5–10% is common), property management fee if applicable (8–12%), and your actual annual property tax and insurance figures.

  4. 4

    Review your results

    Results update instantly. Focus on monthly cash flow and cash-on-cash return as your primary deal filters. Cap rate lets you compare this property against others without the influence of your specific financing.

  5. 5

    Stress-test your assumptions

    Increase the vacancy rate to 10%. Raise the interest rate by 1%. Lower rent by 10%. Does the deal still work? Good investments survive conservative assumptions.

Key Metrics Explained

Cash-on-Cash Return (CoC)

Your annual cash flow divided by the cash you actually put in (down payment + closing costs). The truest measure of how hard your invested dollars are working. Unaffected by paper appreciation.

Cap Rate

Net Operating Income divided by purchase price. Financing-independent — which means you can compare deals fairly regardless of how they're financed. Used by professional investors to benchmark markets.

Net Operating Income (NOI)

Annual effective gross income minus all operating expenses (maintenance, management, taxes, insurance). Does NOT include mortgage payments. The core income metric lenders and appraisers use.

Gross Rent Multiplier (GRM)

Purchase price divided by annual gross rent. A quick screening metric — lower is better. A GRM under 10 is generally favorable. Unlike cap rate, GRM doesn't account for expenses, so use it only for quick comparisons.

Frequently Asked Questions

What is cash-on-cash return and why does it matter?
Cash-on-cash return measures your annual pre-tax cash flow as a percentage of the actual cash you invested (down payment plus closing costs). Unlike cap rate, it accounts for your specific financing. A CoC return of 8–12% is generally considered strong for a leveraged rental property in most markets.
What is cap rate and how is it calculated?
Cap rate (capitalization rate) = Net Operating Income ÷ Purchase Price, expressed as a percentage. It measures a property's income-generating potential independent of financing. Cap rate lets you compare properties fairly even when they have different loan structures. A cap rate above 5–6% is generally considered investment-grade in most U.S. markets.
What vacancy rate should I use?
The national average vacancy rate for residential rentals is approximately 5–8%. In high-demand urban markets it may be closer to 3–4%. In slower rural markets or during economic downturns, 10% or higher is reasonable. We recommend using 5% as a conservative baseline and stress-testing at 10%.
Does this calculator include depreciation or tax benefits?
No — this calculator focuses on cash flow and returns before income taxes. Depreciation, the ability to deduct losses against W-2 income (if you qualify as a Real Estate Professional), and other tax strategies are significant components of total return that vary by individual tax situation. We recommend working with a CPA who specializes in real estate.
What is a good cash-on-cash return for a rental property?
As a general benchmark: below 4% is thin, 4–7% is acceptable, 8–12% is strong, and above 12% is exceptional (and should prompt scrutiny of your assumptions). Location, property class, and your personal investment goals all affect what "good" means for you.
What closing costs should I expect?
This calculator estimates closing costs at 2% of purchase price, which covers lender fees, title insurance, recording fees, and prepaid items. Actual closing costs typically range from 1.5–4% depending on your lender, state, and whether you're paying points to lower your rate. For precise numbers, request a Loan Estimate from your lender.
How does the 1% rule relate to this calculator?
The 1% rule of thumb states that monthly rent should equal at least 1% of the purchase price for a property to cash flow positively. For example, a $200,000 property should rent for $2,000/month. This is a quick screening tool only — this calculator gives you the accurate analysis. Many profitable properties don't meet the 1% rule in appreciating markets.

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