Rental Property Calculator

Use our free rental property calculator to quickly estimate cash flow, return on investment (ROI), and cap rate based on purchase price, rental income, and expenses. Perfect for real estate investors, landlords, and property managers.

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Rental Property Formula

- Net Operating Income (NOI): [ NOI = Rent − Expenses − (Vacancy Rate × Rent) ] - Cap Rate: [ Cap Rate = frac{NOI (Annual)}{Property Price} times 100 ] - Annual Cash Flow: [ Annual Cash Flow = NOI (Annual) − Annual Debt Service ] - ROI (Cash-on-Cash Return): [ ROI = frac{Annual Cash Flow}{Total Cash Invested} times 100 ]
Example:
If Property Price = $200,000, Rent = $1,800, Expenses = $600, Vacancy = 5%: - NOI = $1,800 − $600 − ($1,800 × 0.05) = $1,800 − $600 − $90 = $1,110/month or $13,320/year - Cap Rate = (13,320 ÷ 200,000) × 100 = 6.66% - Annual Cash Flow = NOI = $13,320 → ROI depends on down payment & financing.

These formulas help you determine if a rental property will generate positive returns. With our calculator, you can skip the manual math and see instant results.

How this rental property calculator works

This calculator estimates cash flow, ROI, and cap rate by combining property costs, rental income, and common expenses. It's designed to give investors a fast, simple way to gauge whether a property is financially viable.

When to use this rental property calculator

When analyzing a potential property purchase

To compare multiple rental property deals

To evaluate refinancing or mortgage changes

For estimating ROI before approaching lenders or investors

To check profitability after accounting for vacancies and repairs

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Average Rental Property Returns

Understand how rental properties compare across markets. Typical benchmark ranges:

Single-family homes

5–8% cap rate
net margin

Multifamily apartments

6–10% cap rate
net margin

Commercial rentals

7–12% cap rate
net margin

Vacation rentals

8–15% cap rate
net margin

These benchmarks help investors evaluate whether their property aligns with market expectations.

Frequently Asked Questions

It's based on your inputs and common formulas. Actual returns depend on financing terms, market conditions, and property management.

Cap rate shows property return relative to price (ignores financing). ROI accounts for financing, down payment, and total investment.

Yes, include mortgage as part of monthly expenses to see true cash flow.

Yes—enter average monthly income and expenses. Adjust vacancy rate to reflect seasonal occupancy.

Mortgage, property tax, insurance, HOA fees, repairs, management fees, utilities (if landlord-paid).

Typical assumptions: 5% for residential, 10%+ for commercial. Adjust for your market.

Absolutely—just plug in values for each property and compare ROI and cap rates.

No, but lenders often look at similar metrics. Use this to prepare before applying.

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