Rental Property Calculator
Analyze the profitability of a rental property investment with detailed ROI metrics.
Purchase Details
$75,000
Loan Details
Rental Income
Laundry, parking, storage, etc.
Monthly Operating Expenses
Roof, HVAC, appliances, etc.
Appreciation (Long-term)
Monthly Income
Monthly Expenses
Investment Summary
5-Year Projection
Understanding the Metrics
Cash-on-Cash Return
Annual cash flow divided by total cash invested. Shows the return on your actual investment.
Target: 8-12% is considered good for rental properties.
Cap Rate (Capitalization Rate)
NOI divided by purchase price. Useful for comparing properties as if purchased with cash.
Target: 5-10% depending on market and property class.
NOI (Net Operating Income)
Annual income minus operating expenses (not including mortgage). Used to calculate cap rate and value.
The 1% Rule
A quick screening tool: Monthly rent should be at least 1% of the purchase price. For a $300,000 property, that means $3,000/month rent.
Investment Considerations
- Location: School districts, job growth, crime rates
- Property Type: Single-family, multi-family, condo
- Market Cycle: Are prices rising or falling?
- Tenant Quality: Screening and management
- Exit Strategy: How long will you hold?
Hidden Costs to Consider
- Tenant turnover and make-ready costs
- Legal fees for evictions
- Major repairs (roof, foundation, HVAC)
- Increased insurance after claims
- Property tax reassessments