Updated Deal Analyzer

Rental Property Calculator

Estimate rental cash flow, NOI, cap rate, and cash-on-cash return to see if a property is a good investment.

Cash Flow Cap Rate NOI Cash-on-Cash Return

Rental Property Deal Calculator

Enter purchase price, rent, expenses, and loan terms to analyze your investment property in seconds.

Rental Property Calculator – Cash Flow, Cap Rate & Cash-on-Cash Return

The Rental Property Calculator on MyTimeCalculator allows real estate investors to quickly estimate the financial performance of any rental property. By entering the purchase price, rent, expenses, financing terms, and operating assumptions, you can determine whether a deal meets your investment criteria. This tool calculates cash flow, cap rate, net operating income (NOI), cash-on-cash return, and overall profitability based on real-world formulas used by professional investors.

Whether you’re analyzing your first rental property or comparing multiple deals, this calculator helps you understand the true income potential and risks of a real estate investment. You can also test scenarios—such as changing the rent, vacancy rate, down payment, or interest rate—to see how they impact your cash flow and returns.

Why Use a Rental Property Calculator?

Real estate investing requires accurate analysis. Many beginners underestimate expenses or overestimate income, which can lead to negative cash flow or low returns. A Rental Property Calculator removes the guesswork by breaking down every component of the investment and showing you exact numbers. It ensures you aren’t basing decisions on rough estimates.

This tool calculates:

  • Net Operating Income (NOI): The income left after all operating expenses except mortgage.
  • Cap Rate: The return the property generates based on NOI and purchase price.
  • Cash Flow: The amount of profit or loss you earn each month after paying expenses and the loan.
  • Cash-on-Cash Return: How much profit you earn relative to the cash you invested.
  • Effective Gross Income (EGI): Income after subtracting vacancy losses.
  • Debt Service: Annual mortgage payments.

With these metrics, investors can determine whether a property is a strong deal, break-even, or struggling to produce returns.

1. Understanding the Key Metrics

Before you evaluate a rental property, you need to understand the core financial metrics that determine whether the investment is strong or weak. This calculator uses the same formulas professional investors use to evaluate multifamily properties, single-family rentals, Airbnb units, duplexes, and commercial real estate.

Net Operating Income (NOI)

NOI = Effective Gross Income – Operating Expenses

Net Operating Income is one of the most important figures in rental investing. It represents how much income your property generates after paying all expenses, but before mortgage payments. NOI helps determine cap rate, property value, and long-term potential.

Operating expenses include:

  • Repairs and maintenance
  • Property management fees
  • Property taxes and insurance
  • Utilities (if landlord-paid)
  • HOA fees
  • Administrative or service costs

Effective Gross Income (EGI)

EGI = (Rent + Other Income) × 12 × (1 − Vacancy Rate)

Vacancy is inevitable in rental property ownership. Whether it’s a tenant moving out or a few weeks of turnover, you must account for vacancy when projecting income. A typical vacancy rate ranges from 3%–10% depending on market conditions.

Cap Rate

Cap Rate = (NOI ÷ Purchase Price) × 100

The capitalization rate (cap rate) is a measure of how profitable a property is relative to its price. Higher cap rates generally indicate stronger cash flow, but they may also reflect higher risk or weaker markets.

Typical cap rates:

  • 4%–6%: Premium or low-risk markets
  • 6%–8%: Balanced cash-flow markets
  • 8%–12%: High-cash-flow markets with moderate risk

Cash Flow

Cash Flow = NOI – Annual Debt Service

Cash flow is the profit (or loss) you earn after paying all expenses including the mortgage. Positive cash flow means the property makes money each month. Negative cash flow means you are subsidizing the property out of pocket.

Cash-on-Cash Return (CoC)

CoC Return = (Annual Cash Flow ÷ Cash Invested) × 100

This metric tells you how much return you earn based on the actual cash you put into the deal—down payment plus closing costs. Investors use CoC return to determine whether a deal meets their minimum criteria.

Typical CoC return targets:

  • Below 5%: Weak returns
  • 5%–8%: Average returns
  • 8%–12%: Good returns
  • 12%+: Excellent or high-performance returns

2. How the Rental Property Calculator Works

This calculator processes dozens of calculations and formats the results into simple, understandable metrics. Here’s a breakdown of the inputs and how they influence your investment analysis.

Purchase Price & Financing

You first enter the property’s purchase price, down payment percentage, closing costs, loan interest rate, and mortgage term. These inputs determine your loan amount and debt service.

Loan Amount = Purchase Price − Down Payment

Your down payment directly impacts your monthly mortgage payment. A larger down payment reduces debt service and increases cash flow. Smaller down payments increase leverage but may reduce monthly profitability.

Rental Income

You enter your expected monthly rent and any other income (such as pet fees, parking fees, utility reimbursements, laundry income, or storage income).

The calculator projects:

  • Gross Monthly Income
  • Gross Annual Income
  • Vacancy Loss
  • Effective Gross Income (EGI)

Expenses

Accurately estimating expenses is critical. Many investors underestimate operating expenses and end up with lower-than-expected returns.

You input:

  • Monthly operating expenses (maintenance, HOA, landlord-paid utilities)
  • Annual taxes and insurance
  • Management and maintenance percentage

The calculator then estimates total operating expenses and net operating income (NOI).

Mortgage Payments

For financed purchases, mortgage payments significantly affect cash flow. The calculator uses the standard amortization formula:

M = P × [ r(1 + r)n ÷ ((1 + r)n − 1 ) ]

Where:

  • M = monthly mortgage payment
  • P = loan amount
  • r = monthly interest rate
  • n = total number of payments

3. Example Rental Deal Analysis

Here’s an example scenario to demonstrate how the calculator interprets your input:

Purchase Price: $300,000
Down Payment: 20% ($60,000)
Closing Costs: 3% ($9,000)
Loan Amount: $240,000
Interest Rate: 6%
Monthly Rent: $2,200
Other Income: $0
Vacancy Rate: 5%
Operating Expenses: $500/month
Taxes & Insurance: $3,600/year
Management + Maintenance: 10% of income

Using these numbers, the calculator would estimate:

  • Effective Gross Income: ~$25,080/year
  • Operating Expenses: ~$12,600/year
  • NOI: ~$12,480/year
  • Mortgage Payment: ~$1,439/month
  • Cash Flow: Slightly negative or near break-even (depending on exact numbers)
  • Cap Rate: ~4.1%
  • Cash-on-Cash Return: Low (due to high mortgage payment)

This example shows why accurate calculations are crucial. Even with strong rent, financing costs can reduce or eliminate cash flow.

4. What Makes a Good Rental Property?

The “best” rental property depends on your investment goals, market conditions, and risk tolerance. However, investors often look for properties with:

  • Positive monthly cash flow
  • Cap rates above 6%–8%
  • Cash-on-cash returns above 8%–12%
  • Conservative vacancy and expense estimates
  • Strong rental demand and job growth in the area

Cash Flow vs Appreciation

Some properties produce strong cash flow but have slower long-term appreciation. Others may appreciate rapidly in value but provide limited short-term cash flow. Use this calculator to test different assumptions based on your strategy.

Short-Term Rentals (Airbnb Analysis)

This calculator can be used for Airbnb rentals, but you must adjust the “rent” field to reflect average monthly revenue, not nightly rates. Short-term rentals often have higher vacancy rates and higher expenses.

5. How to Improve Your Rental Returns

If your analysis shows low or negative returns, consider these adjustments:

Increase Rent

Check comparable rental listings to ensure your pricing is competitive. Small increases can significantly improve cash flow.

Reduce Operating Expenses

Examples include negotiating HOA fees, improving energy efficiency, or reducing unnecessary amenities.

Adjust Loan Terms

Lower interest rates, larger down payments, or longer terms can reduce monthly mortgage payments.

Add Additional Revenue Streams

Examples include:

  • Pet fees
  • Parking fees
  • Utility bill-backs
  • Storage rentals
  • Laundry income

6. Related Tools

Explore more financial and investment calculators from MyTimeCalculator:

Rental Property Calculator FAQs

Frequently Asked Questions About Rental Property Analysis

Find answers to common questions about evaluating rental property deals, cash flow, NOI, cap rate, and investment returns.

Most real estate investors look for a cash-on-cash return of at least 8% to 12%. However, this varies depending on your strategy. Long-term appreciation markets may offer lower immediate returns but higher future equity growth, while cash-flow-focused markets generally provide higher CoC returns immediately.

A cap rate between 6% and 8% is typical for stable, cash-flowing markets. High-demand metro areas may have cap rates as low as 3% to 5%, while smaller or higher-risk markets may exceed 8% to 12%. Cap rates must be analyzed within the context of local market conditions.

No. Net Operating Income excludes mortgage payments because it reflects the property’s performance before financing. Mortgage payments are included later when calculating cash flow and cash-on-cash return. NOI allows investors to compare properties regardless of financing structure.

You should include property taxes, insurance, maintenance, repairs, management fees, HOA fees, utilities (if landlord-paid), vacancy, cleaning (for short-term rentals), and miscellaneous operating expenses. Accurately estimating expenses ensures your analysis is realistic.

While standards vary, many investors aim for at least $150 to $300 per month in positive cash flow per property. However, in high-cost markets, break-even or slightly positive cash flow may still be acceptable if there is strong appreciation potential.

Yes, but you must estimate average monthly revenue instead of using nightly rates. Airbnb and short-term rentals typically have higher vacancy rates and higher operating costs, which should be reflected in the inputs for accuracy.

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