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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.
Monthly cash flow
$1,530
Annual NOI
$18,360
Cap rate
6.68%
Cash invested
$74,750
Cash-on-cash return
24.56%
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.
Sources used for this calculator
These primary or official references help define the rules, terminology, safety checks, or source documents behind this estimate. Source links were checked in July 2026. They do not turn the calculator output into a quote, appraisal, tax determination, or professional opinion.
- Publication 527: Residential Rental Property
Internal Revenue Service
Primary federal reference for rental income, operating expenses, depreciation, and reporting; calculator cash flow is not taxable income.
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.
Related Calculators
Cap Rate Calculator
Isolate property income performance from financing with a focused cap rate view.
Cash-on-Cash Return Calculator
See what the cash you actually invested is earning once the loan is in place.
Rental Cash Flow Calculator
Build a detailed monthly cash flow with itemized operating expenses and capex reserves.
Vacancy Rate Calculator
Size physical and economic vacancy so income assumptions stay defensible.
Property Management Fee Calculator
Add the true all-in cost of a property manager to the cash flow build-up.
ARV Calculator
Estimate after-repair value if the deal involves a BRRRR or light rehab.
Real Estate Depreciation Calculator
Layer straight-line depreciation on top of NOI to see the after-tax picture.
Seller Carry Calculator
Model owner-financed acquisitions when the seller is willing to hold paper.
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