Rental Property Calculator
Calculate monthly cash flow, cap rate and cash-on-cash return for a rental property investment.
- Operating Expenses$500.00 · 24%
- Mortgage P&I$1,247.44 · 60%
- Net Cash Flow$342.56 · 16%
Of the $2,090.00/mo in expected rent (after vacancy), $500.00 covers expenses and $1,247.44 covers the mortgage — leaving $342.56 in cash flow.
- Cap Rate7.63%
- Cash-on-Cash Return6.58%
- Monthly P&I$1,247.44
About the Rental Property Calculator
"Rent minus mortgage" is the math most first-time landlords do in their head, and it's missing most of what actually determines whether a rental is a good investment — vacancy, maintenance, and how much cash you actually put down versus how much the bank financed. This calculator produces the three numbers investors actually compare: monthly cash flow, cap rate, and cash-on-cash return, the last of which accounts for leverage in a way a simple rent-minus-payment estimate never does.
It's for anyone sizing up a specific listing before making an offer — aspiring landlords running their first deal, or experienced investors comparing several properties against each other using the same consistent metrics.
The address, the rent estimate, the numbers you're testing against a listing you haven't made an offer on — none of it needs to go through a listing site's own lead-capture calculator. Everything here stays in your browser.
How it’s calculated
Net operating income (NOI) is your effective rent — monthly rent reduced by an assumed vacancy rate — minus operating expenses like tax, insurance, and maintenance, but before the mortgage payment. Cap rate divides annualized NOI by the purchase price, giving a leverage-free measure of the property's return regardless of how it's financed. Cash-on-cash return instead divides your actual annual cash flow (NOI minus mortgage payment) by the cash you put in — your down payment — which is why it moves a lot more with your financing choices than cap rate does.
Frequently asked questions
What's a good cap rate for a rental property?
It varies by market — competitive metro areas often see cap rates in the 4-6% range, while higher-risk or slower-growth markets can offer 8-10%+. Compare a property's cap rate against similar properties in the same local market rather than a single national benchmark.
What's the difference between cap rate and cash-on-cash return?
Cap rate ignores financing entirely and measures the property's own return; cash-on-cash return factors in your mortgage and down payment, showing the return on the actual cash you invested. Two identical properties can have the same cap rate but very different cash-on-cash returns depending on how much leverage you use.
Should I include my mortgage payment in the cap rate calculation?
No — cap rate is deliberately calculated before financing costs, using net operating income only, so it can be compared fairly across properties regardless of how each buyer finances the purchase. Your mortgage payment factors into cash flow and cash-on-cash return instead.
What counts as a monthly operating expense here?
Property tax, insurance, routine maintenance, and typically an allowance for property management if you won't self-manage — recurring costs of owning and operating the property, separate from the mortgage payment itself.
How much vacancy rate should I assume for a rental property?
5% is a common baseline assumption, roughly equivalent to being vacant about two and a half weeks a year, but local rental demand, tenant turnover, and property condition can push this meaningfully higher or lower. Check local market vacancy data for your specific area if you have it.
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