Free Rental Property Calculator
Analyze cash flow, cap rate, and ROI for buy-and-hold investments. A first-pass screening tool for rental property investors evaluating off-market deals.
First pass only. This rental screen uses your numbers. We do not assume loan terms, taxes beyond what you type, or capex events.
Acquisition
Operating Expenses
Rule-of-thumb set-aside, not a warranty bill.
Optional: match your local turnover.
Financing (Optional)
Leave blank if you have not modeled financing yet.
By using this calculator you agree it is educational. Confirm taxes, liens, fees, and rent comparables independently.
How the math works
Rental Property Analysis
Cash In is your purchase price plus upfront repair costs. This is your total equity in the deal before financing.
Net Operating Income (NOI) subtracts operating reserves (taxes, insurance, maintenance, vacancy, management) from annual gross rent—still before debt. NOI = Gross Rent − Operating Expenses.
Cap Rate = NOI ÷ Cash In. It is a simple static screen that shows unlevered return. Cap rate ignores financing, so use it to compare properties on an apples-to-apples basis.
Gross Yield = Annual Gross Rent ÷ Cash In. A quick screening metric that ignores expenses. Useful for market comparison, not final underwriting.
After-Debt Cash Flow only appears if you add a monthly payment. We do not guess your loan terms—enter your actual P\u0026I to see true cash flow. Cash-on-cash return = Annual Cash Flow ÷ Cash In.
Key concepts
Cap Rate
Net Operating Income divided by purchase price (or total cash in). It measures unlevered return—how the property performs without debt. A simple static screen, not a broker's pro forma.
Cash-on-Cash Return
Annual cash flow divided by total cash invested (down payment + closing costs + repairs). Shows your actual cash yield accounting for leverage.
NOI (Net Operating Income)
Gross rent minus operating expenses (vacancy, taxes, insurance, maintenance, management). Before debt service. The pure operating profit of the property.
Gross Yield
Annual gross rent divided by total cash in (purchase + repairs). A quick screening metric that ignores expenses. Useful for comparing markets, not final underwriting.
Operating Expenses
All recurring costs to run the property: taxes, insurance, maintenance, management, vacancy allowance, utilities, HOA. Excludes mortgage payments and capex.
Cash Flow
NOI minus debt service (mortgage payment). Positive cash flow means the property generates spendable income after all bills. The foundation of buy-and-hold wealth building.
Frequently asked questions
1What is a good cap rate for rental property?
Cap rates vary dramatically by market. In stable, appreciating markets (coastal cities), 4-6% can be acceptable. In cash-flow markets (Midwest, South), 8-12% is common. The 'right' cap rate depends on your goals—appreciation investors accept lower caps, while cash-flow investors target higher caps. Use this calculator to compare deals in your target market.
2How do I calculate cash flow on a rental?
Cash flow is your rental income minus all operating expenses and debt service. First, calculate gross rent. Then subtract vacancy, property taxes, insurance, maintenance, management, and utilities (if paid by landlord). This gives you net operating income (NOI). Finally, subtract your mortgage payment to get cash flow. Positive cash flow means the property pays you; negative means you feed it.
3What is NOI (Net Operating Income)?
NOI is your annual rental income minus operating expenses—before debt service. It is the pure operating performance of the property. NOI = Gross Rent − Vacancy − Taxes − Insurance − Maintenance − Management − Utilities. NOI is used to calculate cap rate: NOI ÷ Purchase Price. It is a key metric lenders and buyers use to value income property.
4What operating expenses should I include?
Include all recurring costs to operate the property: property taxes, insurance, maintenance and repairs, property management (even if self-managed, budget for it), vacancy allowance (typically 5-10% of gross rent), utilities (if landlord-paid), HOA fees, landscaping, pest control, and capex reserves for big-ticket items like roofs and HVAC. Do not include mortgage payments in operating expenses.
5How do I estimate vacancy rates?
Research your specific submarket. Urban Class A properties might see 3-5% vacancy, while rural Class C properties could see 10-15%. Check local MLS data, ask property managers, or review census rental vacancy rates for your metro area. Budget conservatively—it is better to overestimate vacancy than to be caught short.
6What is cash-on-cash return?
Cash-on-cash return measures your annual cash flow relative to your actual cash invested (down payment + closing costs + repairs). Formula: Annual Cash Flow ÷ Total Cash Invested. If you put $50,000 into a property and earn $5,000/year in cash flow, your cash-on-cash return is 10%. This is different from cap rate because it accounts for leverage (debt).
7Should I include property management fees?
Yes—even if you plan to self-manage initially. Budget 8-10% of gross rent. Why? Because your time has value, and when you scale beyond a few properties, you will need management. Analyzing with management fees built in shows whether the deal truly works as a passive investment, not just a part-time job.
8How does debt affect rental analysis?
Debt (mortgage) reduces your cash flow but can improve your cash-on-cash return through leverage. In this calculator, add your monthly principal + interest payment to see after-debt cash flow. Positive leverage occurs when your cap rate exceeds your loan interest rate—your borrowed money earns more than it costs. Negative leverage drags down returns.
9What is a good gross yield for rental property?
Gross yield = Annual Gross Rent ÷ Total Cash In (purchase + repairs). In most US markets, 10-15% gross yield is a reasonable target for buy-and-hold investors. Lower yields (6-9%) may work in high-appreciation markets. Higher yields (15%+) often come with higher management intensity and risk. Always pair yield analysis with neighborhood fundamentals.
10Can I use this for multi-family properties?
Yes. Input the total purchase price and total monthly rent across all units. For operating expenses, use property-wide totals. The cap rate, cash flow, and yield math works the same for duplexes, triplexes, and apartment buildings. For properties with 5+ units, lenders use commercial underwriting (based on NOI), which this calculator approximates.
Ready to find rental deals?
Put these numbers to work on real off-market inventory.