Rental Property Calculator
Make informed investment decisions with a detailed financial analysis dashboard.
Annual Cash Flow
$132
Profit after all expenses
Cash on Cash Return
0.21%
Return on your cash invested
Cap Rate
6.00%
Return assuming cash purchase
Annual Expense Breakdown
- Insurance
- Maintenance & Repairs
- Management
- Mortgage (P&I)
- Property Tax
- Utilities & HOA
Detailed Breakdown
How to Use the Rental Property Calculator
- Purchase & Loan Details: Fill in the purchase price, any initial repair costs, your down payment, and the loan terms. This establishes your total initial investment and monthly debt service.
- Income: Enter the expected monthly rent and any other income (like parking or laundry fees). Factoring in a realistic vacancy rate is crucial for an accurate income projection.
- Expenses: Input all anticipated monthly and annual costs. This includes maintenance, repairs, management fees, property taxes, and insurance. The more thorough you are, the more accurate your results will be.
- Analyze the Results: The sticky results panel on the right updates in real-time. Pay close attention to:
- Annual Cash Flow: The money left in your pocket after all expenses and mortgage payments are paid. This is your net profit.
- Cash-on-Cash Return: Shows the return on the actual cash you've invested (down payment, closing costs, repairs). This is a critical metric for evaluating how well your money is working for you.
- Cap Rate: Measures the property's return rate based on its income and market value, assuming it was bought with cash. It's great for comparing properties.
Frequently Asked Questions
What is a good Cap Rate?
A 'good' Cap Rate varies by location and property type, but many investors aim for 4% to 10%. Higher cap rates often indicate higher risk, while lower rates are common in more stable, desirable areas.
What is Cash-on-Cash (CoC) Return?
CoC Return measures the annual pre-tax cash flow you receive relative to the total cash you invested. It's calculated as (Annual Cash Flow / Total Cash Invested). It's one of the most important metrics for real estate investors to determine an investment's profitability.
Why is the vacancy rate important?
The vacancy rate accounts for the time your property will likely sit empty between tenants. Factoring this in provides a much more realistic projection of your annual income. A typical vacancy rate is between 5% and 10%.
Should I include property management fees even if I manage it myself?
Yes, it's a good practice to include a management fee (typically 8-12% of collected rent) even if you self-manage. This accounts for the value of your time and provides a more accurate comparison to other investments where management is not 'free'.