Enter the purchase, the loan, the rent, and the expenses. See whether the property cash flows each month and the return on the cash you put in.
A rental property calculator estimates whether a property earns money each month and the return on the cash you invest. Enter the purchase, the loan, the rent, and the operating expenses to see net cash flow and cash-on-cash return.
Monthly cash flow is the rent left after the mortgage and operating expenses. Cash-on-cash return divides the yearly cash flow by the cash you put in, mostly the down payment, giving a clean way to compare deals of different sizes. A positive cash flow with a solid cash-on-cash return is the mark of a property that pays you while you hold it.
Real returns include more than monthly cash flow: principal paydown builds equity, appreciation can add value, and depreciation shelters some income from tax. On the cost side, vacancy, repairs, and management fees eat into rent. This tool focuses on the core cash-flow math, so pad your expense figure for vacancy and upkeep to stay realistic.
Many investors look for figures in the high single digits or better, but it depends on the market and risk. Compare against other deals and safer alternatives.
Keep the mortgage separate. Operating expenses cover taxes, insurance, management, and upkeep; the loan payment is subtracted alongside them to find cash flow.
Not automatically. Raise your expense figure to reserve for vacancy and repairs, which every rental eventually faces.
See the exact formula and a worked example on our methodology page.