Finance category

Mortgage, loan, investing, tax, and money calculators.

Minimum Rent Calculator

Set a target cash-on-cash return for a rental and solve for the gross monthly rent required to hit it. The calculator grosses up for vacancy and operating expenses automatically.

Property price

Down payment

Rate

Term (years)

Operating expense ratio

Vacancy

Target cash-on-cash

Minimum rent for target return

$4,630

monthly

Break-even rent

$3,493

covers debt + opex only

Down payment / cash invested

$96,250

Monthly debt service

$1,970

56% of rent flows to NOI

How to use it

Set the cash-on-cash return you want to earn on the down payment. The calculator solves for the gross monthly rent required, after grossing up for vacancy and operating expenses.

If the minimum rent is at or below market rent for the property, the deal works at this leverage and target. If it's above market, you need a lower price, more cash down, a lower rate, or a lower target return.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Minimum Rent Calculator is built to give a quick, browser-based estimate for minimum rent. Set a target cash-on-cash return for a rental and solve for the gross monthly rent required to hit it. The calculator grosses up for vacancy and operating expenses automatically. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the minimum rent result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this minimum rent estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter the property price and your down payment percentage.
Enter the rate and term that drive monthly debt service.
Estimate operating expense ratio (35–50% on a stabilized residential rental).
Enter expected vacancy.
Enter your target cash-on-cash return — 6–10% is common for stabilized rentals; 12%+ for value-add.
Read the minimum gross monthly rent. If it's at or below market, the deal works.

Frequently Asked Questions

What's the difference vs break-even rent?

Break-even rent solves for $0 cash flow. Minimum rent for a target return solves for cash flow that produces a specific cash-on-cash percentage on the down payment.

How do I pick a target cash-on-cash?

It's investor preference. 6–8% is common for stabilized small multifamily in B-class neighborhoods. 8–12% for B/C class. 12%+ for value-add or higher-risk markets. Compare to alternatives (S&P, bonds, business equity).

Why use OER% instead of dollar opex?

OER% scales with rent, which makes the calculation circular if you use a dollar number that depends on the rent you're solving for. Using a percentage breaks the circularity and matches how appraisers and lenders model income.

Does this account for capex?

Include capex reserve in your operating expense ratio (often raises OER 5–10 points). Without capex reserves, your minimum rent is too low and the first major repair eats years of cash flow.