Rental property calculator
Cash flow, cap rate and cash-on-cash return for a rental property.
About this calculator
This rental property calculator shows whether a property would pay for itself. Enter the price, the mortgage, the rent and the running costs.
It gives the monthly cash flow, the cap rate and the cash-on-cash return, and shows where each month's rent goes.
How it works
Net operating income is the rent collected, less vacancy and running costs, before the mortgage. Cap rate is that yearly income ÷ the price. Cash flow also takes off the mortgage payment, and cash-on-cash return divides the yearly cash flow by the cash you put in.
Last reviewed:
Worked example
- Purchase price: $300,000
- Down payment: 25%
- Interest rate: 7% a year
- Loan term: 30 yr
- Closing and repair costs: $9,000
- Monthly rent: $2,400
- Vacancy: 5%
- Property tax: $3,600 a year
- Insurance: $1,500 a year
- Maintenance: 8% of rent
Monthly cash flow: $166.07 (after the mortgage and running costs)
Common questions
What is a good cap rate?
Many investors look for about 5% to 10%, but it depends on the area and the risk. Lower cap rates are common in expensive, stable markets.
What is the 1% rule?
A quick screen that says the monthly rent should be at least 1% of the purchase price. It ignores many costs, so use it only to shortlist properties.
What is cash-on-cash return?
Your yearly cash flow divided by the cash you put in, such as the down payment and closing costs. It shows the return on your own money, after the mortgage.
Sources and further reading
The story behind it
Where the idea came from: The cap rate, short for capitalization rate, comes from appraisers, who value a property by capitalizing its yearly income: dividing that income by a market rate.
One number lets investors compare buildings of very different prices. Cash-on-cash return adds the effect of the mortgage, so the calculator shows both.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
After 15 years as a mathematics educator, I built CalculStore to give students, teachers, professionals and anyone working with numbers simple, reliable tools.
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