Finance category

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

Rental Property Calculator

Estimate whether a rental property deal works by modeling rent, vacancy, operating expenses, purchase price, and the cash you need to put in.

Purchase price

Down payment (%)

Monthly rent

Monthly operating expenses

Vacancy rate (%)

Closing costs

Monthly cash flow

$1,530

Annual NOI

$18,360

Cap rate

6.68%

Cash invested

$74,750

Cash-on-cash return

24.56%

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.

Calculation notes and example

Rental property formulas used here

Rental analysis starts with gross rent, subtracts vacancy and operating expenses to estimate net operating income, then subtracts debt service to estimate cash flow. Cap rate is NOI ÷ purchase price. Cash-on-cash return is annual pre-tax cash flow ÷ cash invested. Keeping NOI separate from loan payments matters because cap rate measures the property, while cash-on-cash measures your leveraged investment.

Worked example

A duplex rents for $3,600 per month. After 5% vacancy and $12,000 of annual operating expenses, NOI is about $29,040. If the purchase price is $450,000, the cap rate is roughly 6.45%. With a mortgage payment of $2,250 and $110,000 cash invested, annual cash flow is about $2,040, or 1.85% cash-on-cash. That thin spread may still work if appreciation or rent growth is realistic, but it deserves stress testing.

Edge cases and practical tips

Separate repairs from capital improvements; both consume cash, but they affect taxes and valuation differently.
Do not understate vacancy just because the unit is occupied today.
Compare the same deal with the cap rate calculator and loan-to-value calculator before making an offer.

Useful companion tools: Cap Rate Calculator, Cash-on-Cash Return Calculator, Loan-to-Value Calculator, and Property Tax Calculator.

How to interpret the rental property 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 rental property 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 purchase price, down payment, and closing-cost assumptions for the property you are analyzing.
Add expected monthly rent and recurring operating expenses such as repairs, taxes, insurance, and management.
Set a realistic vacancy assumption so the income estimate is not too optimistic.
Review monthly cash flow, annual NOI, cap rate, and cash-on-cash return before comparing the property with other deals.

Frequently Asked Questions

What is NOI?

NOI means net operating income. It is rental income after vacancy and operating expenses but before financing, income taxes, and depreciation.

What does cap rate tell me?

Cap rate is NOI divided by purchase price. It gives you a fast way to compare the income performance of one property against another before financing is considered.

What is cash-on-cash return?

Cash-on-cash return compares annual pre-tax cash flow with the actual cash invested upfront, which helps when comparing leveraged real-estate deals.

Should I model vacancy even in a strong market?

Yes. A vacancy assumption keeps the analysis grounded because nearly every rental property experiences some turnover, downtime, or credit loss.

Does this include a mortgage payment?

This version focuses on property operating performance and the cash invested. If you also want loan payment detail, pair it with the mortgage calculator.