Rental Property Calculator
Use our free Rental Property Calculator to quickly estimate your investment performance, including monthly cash flow, ROI, and cap rate. Simply input details such as purchase price, loan amount, rent, expenses, and taxes to get a clear picture of profitability. Perfect for new and experienced real estate investors alike, this tool helps you understand how much income your property can generate after costs, revealing whether a deal is worth pursuing. It takes the complexity out of real estate math so you can make confident, data-backed decisions before you buy.
Rental Property Formula
Understanding how rental property returns are calculated is essential for investors who want to avoid poor-performing deals. The formulas for cash flow, ROI, and cap rate reveal whether your property is generating positive returns after all expenses. Many investors underestimate maintenance, vacancies, or financing costs, leading to inflated expectations. Using a Rental Property Calculator ensures every cost—taxes, insurance, repairs, and management fees—is included in your estimates. This gives you a true picture of income potential and helps you compare multiple properties consistently. It’s the simplest way to evaluate profitability before committing capital.
How this rental property calculator works
This calculator estimates your property’s financial performance based on income, expenses, and financing inputs. It provides quick visibility into cash flow and investment returns.
Inputs and logic:
The calculator automatically subtracts realistic expenses and mortgage payments from rental income, offering a clear estimate of profitability. It’s perfect for analyzing both single-family homes and multifamily investments.
When to use this rental property calculator
Use this calculator anytime you’re evaluating a potential rental investment or comparing existing properties.
Before purchasing a property: Estimate whether it meets your target ROI and cash flow goals.
When refinancing or adjusting rent: Reassess profitability as loan or rent conditions change.
For portfolio analysis: Compare multiple properties side by side.
When setting rental prices: Ensure rents cover costs and yield positive monthly income.
For investor presentations: Include data-backed ROI and cap rate visuals in reports.
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Average Rental Property Returns by Category
Understand typical performance metrics across different real estate investment types. Use these ranges to benchmark your property’s potential.
Single-Family Rentals
Small Multifamily (2–4 units)
Large Multifamily (5+ units)
Short-Term / Vacation Rentals
Commercial Properties
REITs (Real Estate Investment Trusts)
These benchmarks help investors gauge whether their rental property is performing in line with typical market returns and risk levels.
Frequently Asked Questions
Divide your annual cash flow by your total investment (including down payment and closing costs) and multiply by 100 to get ROI as a percentage.
A good ROI typically ranges from 8–12%, though higher returns are possible in high-demand or short-term rental markets.
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.