Introduction
This rental income calculator helps you find out if a rental property will make or lose money. Enter the purchase price, rent, expenses, and loan details, and the tool does the math for you. It shows your monthly cash flow, cap rate, cash-on-cash return, and other key numbers that real estate investors use to judge a deal.
The calculator also builds a 10-year projection so you can see how your income and costs may change over time. It factors in vacancy, property taxes, insurance, repairs, property management fees, and mortgage payments. Each result includes a step-by-step breakdown that shows exactly how every number was calculated.
Whether you are buying your first rental property or adding to a portfolio, use this tool to compare deals, test different down payments and interest rates, and spot bad investments before you commit your money.
How to Use Our Rental Income Calculator
Enter details about your rental property purchase, income, and costs below. The calculator will show your monthly cash flow, annual profit and loss, key return metrics like cap rate and cash-on-cash return, and a 10-year projection.
Purchase Price — Enter the total price you will pay for the property in dollars.
Down Payment — Enter the amount of cash you will put down. You can type a dollar amount or switch to a percentage of the purchase price. If you need help figuring out the right amount, try our down payment calculator.
Closing Costs — Enter the fees you pay when the sale closes, such as lender fees, title fees, and attorney costs. Use our closing cost calculator for a detailed estimate of these fees.
Renovation / Rehab — Enter any money you plan to spend on repairs or upgrades before renting the property out.
Number of Units — Enter how many rental units the property has. Use 1 for a single-family home.
Monthly Rent Per Unit — Enter the monthly rent you expect to collect from each unit.
Annual Rent Increase — Enter the percentage you expect rent to grow each year. This is used in the 10-year projection only.
Vacancy Rate — Enter the portion of the year you expect the property to sit empty with no tenant. You can enter this as a percentage of the year or as a number of days per year.
Property Taxes — Enter your annual property tax. You can type it as a percentage of the purchase price or as a flat dollar amount per year. Our property tax calculator can help you estimate this cost.
Landlord Insurance — Enter the total cost of your landlord insurance policy per year in dollars. You can estimate this with our homeowners insurance calculator.
Repairs / CapEx — Enter the percentage of gross rent you want to set aside each year for repairs, maintenance, and big-ticket replacements like a roof or furnace.
Property Management — Enter the percentage of collected rent you will pay a property manager. Include this even if you manage the property yourself, since your time has value.
Leasing / Turnover — Enter how many months of rent per year you expect to spend on tenant placement costs like listing fees, background checks, and turnover cleaning.
HOA / Condo Fees — Enter any homeowners association or condo fees you must pay each month. Enter 0 if there are none.
Other / Misc. Expenses — Enter any other yearly costs not covered above, such as lawn care, pest control, or accounting fees.
Loan-to-Value (LTV) — This shows what percentage of the purchase price is covered by your loan. It auto-syncs with your down payment. You can also edit it directly to adjust your down payment. Our LTV calculator explains this ratio in more detail.
Annual Interest Rate — Enter the yearly interest rate on your mortgage loan.
Loan Term — Choose the length of your mortgage in years. Common options are 15 or 30 years.
Effective Tax Rate — Enter your combined federal and state income tax rate. This is used to calculate your after-tax return. Use our effective tax rate calculator if you are unsure of this number.
Land Value — Enter the percentage of the purchase price that is land. Only the building portion can be depreciated for tax purposes over 27.5 years. The IRS does not allow you to depreciate land.
Press the Calculate button or hit Enter to see your results. Press Reset to return all fields to their default values.
What Is a Rental Income Calculator?
A rental income calculator helps you figure out if a rental property will make or lose money. You enter details like the purchase price, monthly rent, and expenses. The calculator then shows you how much cash you can expect to earn each month and each year after all costs are paid.
Why Rental Income Matters
When you buy a property to rent out, the rent your tenants pay is your income. But owning a rental property also comes with costs. You have to pay for things like property taxes, insurance, repairs, and often a mortgage. Rental income is the money left over after you subtract all of those costs from the rent you collect. If the number is positive, the property makes money. If it is negative, the property costs you money each month.
Key Numbers Every Rental Property Investor Should Know
Net Operating Income (NOI) is your total rent minus vacancy losses and operating expenses. It does not include your mortgage payment. NOI tells you how well the property performs on its own, no matter how you paid for it.
Cash flow is the money you actually keep after paying everything, including the mortgage. Positive monthly cash flow means the property puts money in your pocket. Many investors aim for at least $100 per unit per month as a minimum starting point. For a broader look at how your total monthly housing payment breaks down, see our PITI calculator.
Cap rate stands for capitalization rate. It equals your NOI divided by the purchase price. A higher cap rate usually means a higher return, but it can also mean more risk. Most residential rental properties fall between 4% and 8%. You can explore this metric further with our dedicated cap rate calculator.
Cash-on-cash return measures how much cash you earn compared to the cash you actually invested upfront. This includes your down payment, closing costs, and any renovation costs. It shows you the real return on the money you put in. For a general look at investment returns, our ROI calculator is also useful.
Vacancy rate is the portion of the year your property sits empty with no tenant paying rent. Even good properties have some vacancy between tenants. Most investors plan for at least 5% to 8% vacancy to stay safe.
Costs to Expect as a Landlord
Rental property expenses go beyond just the mortgage. You will pay property taxes, landlord insurance, and repair costs. Many owners also pay a property management company to handle tenants, which typically costs 7% to 10% of collected rent. HOA fees, leasing costs when finding new tenants, and general maintenance all add up. A good rule of thumb is to set aside around 8% to 10% of gross rent for repairs and future big-ticket fixes like a new roof or water heater. If you want a fuller picture of total property costs, our rental property calculator can help.
How Financing Affects Your Returns
Most people use a mortgage to buy rental property. A larger down payment means a smaller loan and lower monthly payments, which improves cash flow. But it also means more of your own money is tied up in the property, which can lower your cash-on-cash return. The interest rate and loan term also matter. A 30-year loan gives you smaller monthly payments than a 15-year loan, but you pay more interest over time. To see how your loan balance decreases with each payment, use our amortization calculator. If you are weighing whether to rent or own your primary residence first, our rent vs buy calculator can help with that decision.
Tax Benefits of Rental Property
Rental property owners can deduct many expenses from their taxable income. One of the biggest deductions is depreciation. The IRS lets you write off the cost of the building (not the land) over 27.5 years. This paper loss reduces your taxes even though you did not actually spend that money in cash. Mortgage interest is also deductible. These tax benefits can turn a modest pre-tax return into a much stronger after-tax return. To understand how these deductions fit into your overall tax picture, check out our income tax calculator or capital gains tax calculator for when you eventually sell the property.