Rental Property Calculator
Analyze a rental deal by calculating its NOI, cap rate, monthly cash flow, and cash-on-cash return from price, rent, expenses, and loan terms.
Example
A $300,000 property rents for $2,500/mo with $500/mo expenses and 5% vacancy. Effective income is $28,500/yr and operating expenses $6,000/yr, giving an NOI of $22,500 and a cap rate of 7.50%.
With 20% down ($60,000) on a $240,000 loan at 7% over 30 years, the mortgage is $1,596.73/mo. Annual debt service is $19,160.71, leaving $3,339.29/yr in cash flow ($278.27/mo). On $66,000 cash invested (down payment plus $6,000 closing), that is a 5.06% cash-on-cash return.
How it works
Enter the purchase price, monthly rent, operating expenses, vacancy rate, and financing details. The tool computes net operating income, cap rate, cash flow, and cash-on-cash return live.
Good to know
This Rental Property Calculator turns the core numbers of a single-family or small rental deal into the four metrics investors actually compare: net operating income (NOI), cap rate, monthly and annual cash flow, and cash-on-cash return. You feed it a purchase price, monthly rent, monthly operating expenses, a vacancy rate, and the financing terms (down payment, closing costs, interest rate, and loan term), and it recalculates everything live as you type. It is aimed at first-time landlords, house hackers, and buy-and-hold investors who want to screen a listing in seconds before digging into a full underwriting.
Reach for it when you are comparing two or three properties, sanity-checking a deal a realtor or wholesaler sent you, or stress-testing how a higher interest rate or vacancy assumption changes your return. Because it runs entirely in your browser, you can run dozens of scenarios on listings without sending any numbers to a server.
Read the results from the top down. NOI and cap rate describe the property itself with no loan involved, so they let you compare two buildings on equal footing. Cash flow and cash-on-cash then layer your specific financing on top: cash-on-cash is your annual pre-tax cash flow divided by the actual cash you put in (down payment plus closing costs). The stacked bars showing effective income, operating expenses, and debt service give you a quick visual on how much of your rent is being eaten before it reaches your pocket.
One important caveat: this tool deliberately keeps the expense model simple. The "operating expenses" field is whatever monthly figure you enter, and the math does not add separate reserves for capital expenditures (roof, HVAC, turnover), property management fees, or income taxes unless you bake them into that number yourself. A deal that looks cash-flow-positive here can turn negative once those real-world costs are included, so treat the output as a fast first-pass screen rather than a finished pro forma.
Frequently asked questions
What is the difference between cap rate and cash-on-cash return?
Cap rate is NOI divided by purchase price and ignores financing, measuring the property's unleveraged yield. Cash-on-cash divides your annual pre-tax cash flow (after mortgage payments) by the actual cash you invested (down payment plus closing costs), so it reflects your leveraged return.
Why is the mortgage payment excluded from NOI?
Net operating income measures a property's income after operating expenses but before debt service, so it stays comparable regardless of how the deal is financed. The mortgage is subtracted afterward to compute cash flow and cash-on-cash return.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What is a good cap rate for a rental property?
There is no single correct number; cap rates vary widely by market, property type, and risk, and lower-risk areas often trade at lower cap rates. Investors typically compare a property's cap rate against similar recently sold properties in the same area rather than a universal benchmark.
How do you calculate NOI on a rental property?
NOI equals your effective rental income (gross rent minus vacancy) minus annual operating expenses, and it does not subtract the mortgage payment. In this tool, that means annual rent reduced by the vacancy rate, then reduced by your monthly operating expenses multiplied by twelve.
What is the 1% rule in rental property investing?
The 1% rule is a quick screening heuristic suggesting a property's monthly rent should be at least 1% of its purchase price. It is a rough filter, not a precise analysis, and many investors find it harder to meet in higher-priced markets.
Does cap rate include the mortgage?
No. Cap rate is based on NOI, which is calculated before debt service, so the same property has the same cap rate regardless of how it is financed. Financing only affects the cash flow and cash-on-cash figures.
What expenses count as operating expenses for a rental?
Operating expenses generally include items like property taxes, insurance, property management, repairs and maintenance, utilities you pay, and HOA fees. They typically exclude the mortgage principal and interest, capital improvements, and income taxes.
What is a typical vacancy rate to use when analyzing a rental?
Vacancy rates depend heavily on the local market and property type, and many investors estimate them using local data or historical figures for comparable units. Using a conservative assumption helps avoid overstating expected income.
Why might my actual cash flow be lower than this calculator shows?
This calculator only subtracts the operating expenses and financing figures you enter, so costs you leave out can reduce real cash flow. Common omissions include capital expenditure reserves, property management fees, and income taxes.
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