Introduction
This rental property calculator helps you figure out if an investment property is worth buying. Enter the purchase price, loan details, rent, and expenses, 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 tell you whether a deal makes or loses money.
The calculator also projects your income, expenses, equity, and property value year by year for your entire holding period. It runs a sensitivity analysis so you can see how changes in rent, vacancy, or interest rates affect your returns. A step-by-step breakdown shows exactly how each result is calculated, so you can follow the math and trust the numbers.
Whether you are buying your first rental or adding to a portfolio, use this tool to compare deals, test assumptions, and make smarter investment decisions before you spend a dollar.
How to Use Our Rental Property Calculator
Enter details about your rental property purchase, income, expenses, and sale plans below. The calculator will show you cash flow, cap rate, cash-on-cash return, IRR, and other key metrics so you can decide if the deal is worth it.
Purchase & Financing
Purchase Price — Enter the total price you will pay for the property in dollars. This is required.
Estimated Closing Costs — Enter the fees you expect to pay at closing, such as title fees, appraisal, and lender charges. This amount counts toward your total cash invested. Use our closing cost calculator to estimate these fees more precisely.
Are You Using a Loan? — Select "Yes" if you plan to finance the property with a mortgage. Select "No" if you are paying all cash.
Down Payment — Enter the percentage of the purchase price you will pay upfront. For example, enter 20 for a 20% down payment. This field only applies if you are using a loan. Our down payment calculator can help you determine how much to put down.
Interest Rate — Enter the annual interest rate on your mortgage. For example, enter 7 for a 7% rate.
Loan Term — Enter the length of your loan in years. You can also click the 15, 20, or 30 buttons to quickly set a common term.
Loan Points — Enter any upfront fee charged by the lender as a percentage of the loan amount. Each point equals 1% of the loan. Enter 0 if you have no points.
Does the Property Need Repairs? — Select "Yes" if you plan to renovate the property before renting it out. Select "No" if it is move-in ready.
Repair / Renovation Cost — Enter the total dollar amount you expect to spend on repairs. This is added to your cash invested.
After Repair Value (ARV) — Enter what you believe the property will be worth after all repairs are done. The calculator uses this value instead of the purchase price for cap rate and appreciation.
Income
Monthly Rent — Enter the rent you expect to collect each month in dollars. In the growth rate field, enter the percentage you expect rent to increase each year. If you are not sure what to charge, our rent affordability calculator can provide a reference point.
Other Monthly Income — Enter any extra monthly income from things like parking, storage, or laundry. Set the annual growth rate for this income as well.
Vacancy Rate — Enter the percentage of time you expect the property to sit empty. A common estimate is 6% to 10%. This reduces your gross rental income.
Property Management Fee — Enter the percentage of income you will pay a property manager. Enter a value even if you plan to manage the property yourself, so you account for the true cost.
Recurring Operating Expenses
Property Taxes — Enter the total annual property tax bill in dollars and the rate you expect it to grow each year. You can use our property tax calculator to estimate your annual tax bill.
Landlord / Hazard Insurance — Enter your annual insurance premium and its expected yearly increase. Our homeowners insurance calculator can help you estimate this cost.
HOA Fees — Enter the total annual HOA dues. Leave this at 0 if the property has no HOA.
Utilities — Enter the annual cost of any utilities you pay as the landlord, such as water, electric, or gas. Leave at 0 if tenants pay all utilities.
Repairs & Maintenance — Enter an annual budget for routine fixes like plumbing leaks, paint, and small repairs.
Capital Expenditures (CapEx) — Enter an annual reserve for big-ticket replacements like a roof, HVAC system, or appliances. This cost is often overlooked but very important.
Garbage / Sewer — Enter the annual cost of garbage collection and sewer service if you pay for them.
Other Costs — Enter any other annual expenses not listed above, such as pest control or landscaping.
Sale / Exit
Do You Know Your Future Sell Price? — Select "Yes" if you have a specific price in mind. Select "No" to let the calculator estimate it using an appreciation rate.
Expected Sell Price — If you selected "Yes" above, enter the price you expect to sell the property for in the future.
Annual Property Appreciation — If you selected "No" above, enter the yearly rate you expect the property value to grow. The calculator uses this to project the future sale price.
Holding Period — Enter the number of years you plan to own the property before selling it.
Cost to Sell — Enter the total selling costs as a percentage of the sale price. This includes agent commissions, closing costs, and transfer taxes. A common estimate is 6%.
Your Results
Click the Calculate button to see your results. You will get year-one metrics like cash flow, cap rate, and cash-on-cash return. You will also see long-term numbers like IRR, total profit, and equity at sale. A year-by-year projection table, sensitivity analysis, and charts help you visualize the deal over time. Click Reset to return all fields to their default values.
What Is a Rental Property Calculator?
A rental property calculator helps you figure out if a rental home or apartment is a good investment. You enter details like the purchase price, loan terms, monthly rent, and expenses. The calculator then shows you how much money you could make or lose each month and each year.
Key Numbers It Gives You
Cash flow is the money left over after you pay all bills, including the mortgage. Positive cash flow means the property earns money. Negative cash flow means it costs you money each month.
Net Operating Income (NOI) is your rental income minus operating costs like taxes, insurance, and repairs. It does not include your mortgage payment. Lenders and investors use NOI to judge how well a property performs on its own.
Cap rate compares NOI to the property's value. A higher cap rate usually means a better return, but it can also mean more risk. Most rental properties fall between 4% and 10%. You can dive deeper into this metric with our dedicated cap rate calculator.
Cash-on-cash return tells you how much cash you earn compared to the cash you put in. If you invest $60,000 and earn $6,000 a year in cash flow, your cash-on-cash return is 10%.
DSCR (Debt Service Coverage Ratio) shows whether the property earns enough to cover its loan payments. A DSCR above 1.0 means income exceeds debt. Most lenders want to see at least 1.2 to 1.25. For a more focused analysis, try our DSCR calculator.
IRR (Internal Rate of Return) measures your total return over time, including cash flow, appreciation, and the profit when you sell. It accounts for the timing of every dollar in and out, making it one of the most complete measures of an investment's performance. Our standalone IRR calculator lets you explore this metric with custom cash flows.
Rules of Thumb
The 1% rule says monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for at least $2,000 a month. This is a quick filter, not a final answer.
The 50% rule says about half of your gross rent will go to operating expenses, not counting the mortgage. It helps you estimate cash flow fast before you dig into exact numbers.
Why Vacancy and Management Fees Matter
No rental is occupied every single day. Vacancy rate accounts for the time between tenants when you earn no rent. A typical estimate is 6% to 10% of gross rent. Property management fees cover the cost of someone handling tenants, maintenance calls, and rent collection. Even if you manage the property yourself, including this fee gives you a more honest picture of costs.
What Are Capital Expenditures?
Capital expenditures, or CapEx, are big-ticket items that wear out over time. Roofs, water heaters, HVAC systems, and appliances all need replacing eventually. Setting aside money each year for CapEx prevents a surprise bill from wiping out years of profit. Many new investors skip this, which makes their returns look better than they really are.
How the Year-by-Year Projection Works
The projection table grows your rent and expenses each year by the growth rates you enter. It also tracks your loan balance as you pay it down and your property value as it appreciates. This lets you see how cash flow, equity, and overall wealth change over your entire holding period. To see exactly how your loan is paid off over time, check out our amortization calculator. If you want to compare the full cost of financing your purchase, our mortgage calculator can help you model different loan scenarios. You can also use the rental yield calculator and Airbnb calculator to compare your returns against other rental strategies, or try the rent vs buy calculator to see if purchasing makes more financial sense than renting in your market.