Our free Rental Property Calculator helps investors quickly estimate potential returns, cash flow, and profitability of any rental property. Input your property details, expenses, and expected rent to make informed real estate investment decisions and maximize your ROI. Start analyzing your next passive income opportunity today!
Formula:
Key Rental Property Formulas:
Monthly Cash Flow = (Effective Monthly Rent) − (Total Monthly Expenses)
Capitalization Rate (Cap Rate) = (Net Operating Income / Purchase Price) × 100
Cash-on-Cash Return = (Annual Cash Flow / Total Initial Investment) × 100
Where:
- Effective Monthly Rent = Monthly Rent × (1 − Vacancy Rate)
- Net Operating Income (NOI) = (Effective Monthly Rent × 12) − (Annual Property Taxes + Annual Insurance + Annual Property Management + Annual Maintenance + Annual HOA + Other Annual Expenses)
- Total Monthly Expenses = Mortgage Payment + Monthly Taxes + Monthly Insurance + Monthly Property Management + Monthly Maintenance + Monthly HOA + Other Monthly Expenses
- Total Initial Investment = Purchase Price × (Down Payment Percent / 100) + Renovation Costs + Closing Costs