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Analyze rental property investments with comprehensive ROI metrics, cash flow projections, cap rate calculations, and multi-year financial analysis. Make informed investment decisions with detailed insights.
✓Positive monthly cash flow
⚠Low cash on cash return
✗Fails 1% rule
Important Note:
This calculator provides estimates for analysis purposes. Actual results may vary. Consult with real estate professionals, accountants, and financial advisors before making investment decisions.
A rental property calculator is a professional financial analysis tool that helps real estate investors evaluate investment opportunities by calculating critical metrics including cash flow, return on investment (ROI), capitalization rate (cap rate), cash on cash return, and debt service coverage ratio (DSCR). This tool provides data-driven insights for making informed investment decisions based on actual property financials.
Our calculator analyzes all aspects of rental property ownership: purchase price, down payment, financing terms, monthly rental income, operating expenses (property taxes, insurance, maintenance, property management), vacancy rates, and projected appreciation. It generates both immediate cash flow analysis and multi-year projections, showing exactly how your investment will perform over time with detailed year-by-year breakdowns.
This tool is designed for both first-time investors conducting their initial property analysis and experienced investors managing multiple properties. The calculator follows industry-standard formulas used by professional real estate analysts and financial institutions, ensuring accurate and reliable results that you can use for investment decisions, loan applications, and portfolio management.
Professional Tool for Serious Investors
Built using real estate investment principles and formulas recognized by financial institutions, property managers, and professional investors. All calculations are transparent and based on industry-standard methodologies.
Input purchase price, down payment percentage, closing costs, and any rehab/repair costs needed.
Set interest rate and loan term (15, 20, or 30 years) to calculate monthly mortgage payments.
Enter monthly rent, other income sources, vacancy rate, and expected annual rent increases.
Add property tax, insurance, HOA, maintenance, property management, utilities, and other expenses.
Annual cash flow divided by total cash invested. Measures actual return on your money.
Target: 8-12% annually
Net Operating Income divided by purchase price. Shows property's potential return.
Target: 4-10% range
Purchase price divided by annual rent. Quick valuation metric for comparison.
Target: 4-7 typical
NOI divided by annual debt service. Shows ability to cover mortgage.
Target: 1.25+ required
Monthly rent should equal at least 1% of the purchase price. A $300,000 property should rent for $3,000/month. This quick screening tool helps identify potentially profitable deals.
✅ Pass = Likely positive cash flow
Operating expenses typically equal 50% of gross rental income (excluding mortgage). Quick estimation: $2,000 rent = $1,000 expenses, leaving $1,000 for mortgage and profit.
📊 Quick deal analysis tool
Lenders require DSCR of 1.20-1.25 minimum. This means property income must be 20-25% higher than mortgage payments to qualify for investment property loans.
Target: 1.25+ for approval
Cap rates vary by market: 4-6% in stable/appreciating markets, 8-10%+ in higher-risk areas. Compare to similar properties in your target market for context.
Higher cap = Higher return/risk
Property generates more income than expenses from day one
Cash on cash return above 8%, cap rate competitive for market
Strong rental demand, low vacancy rates, growing employment
Favorable buyer's market, reasonable property prices
6-12 months of expenses saved after down payment
Property inspection, title search, market analysis done
Generate monthly cash flow from rental payments
Build wealth through long-term property value growth
Tenants pay down your mortgage, increasing your equity
Deduct mortgage interest, depreciation, expenses, and more
Rents typically increase with inflation, protecting purchasing power
Direct control over investment with ability to use financing
Failing to account for all operating costs, maintenance, and vacancies
Not conducting thorough property inspections before purchase
Taking on too much debt without adequate cash reserves
Buying in areas with weak rental demand or declining values
Hoping for appreciation while losing money monthly
Not properly vetting tenants, leading to payment issues
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