Rental Property Calculator
Analyze a rental property with monthly cash flow, cap rate, and cash-on-cash return from the price, financing, rent, expenses, and vacancy.
Independently verified for accuracy
Calculator by Toolsloft ↗- Monthly cash flow
- $159.40
- Annual cash flow
- $1,912.74
- Cap rate
- 7.15%
- Cash-on-cash return
- 3.83%
- Mortgage payment
- $1,330.60
This calculator analyzes a rental property deal: monthly cash flow after the mortgage, the cap rate, and the cash-on-cash return on your down payment. Use it to screen listings and compare rentals before you make an offer.
How this is calculated
Cash flow is effective rent (rent after a vacancy allowance) minus operating expenses and the mortgage payment. The cap rate is net operating income (before debt service) divided by the purchase price. Cash-on-cash return is annual cash flow divided by the cash invested as the down payment.
How to use
- Enter the purchase price, down payment percentage, rate, and term.
- Enter the monthly rent, monthly operating expenses, and a vacancy allowance.
- Read the mortgage payment, cash flow, cap rate, and cash-on-cash return.
Examples
- $250k, 20% down, $2,200 rent:
$159.40/mo cash flow, 7.15% cap - $400k, 25% down, $3,000 rent:
negative cash flow
FAQ
- What is cash-on-cash return?
- It is the annual pre-tax cash flow divided by the cash you put in, usually the down payment. It measures the yearly return on the money actually invested, separate from appreciation.
- What should operating expenses include?
- Include property taxes, insurance, maintenance, property management, and HOA dues, but not the mortgage payment. The mortgage is handled separately as debt service.
- Why is the cap rate different from cash-on-cash?
- Cap rate ignores financing and measures the property unlevered yield on the full price. Cash-on-cash includes the mortgage and measures the return on your invested cash, so leverage changes it.