Rental Property Calculator

Analyze rental property investments with detailed cash flow projections, ROI calculations, and year-by-year analysis.

$
$
$

Finance the purchase with a mortgage

%
%

Enter Property Details

Fill out the property purchase details, expected income, and expenses to analyze your rental investment.

Understanding Rental Property Investment

Key Investment Metrics

  • Cash-on-Cash Return: Annual cash flow divided by total cash invested (target: 8%+)
  • Cap Rate: Net operating income divided by purchase price (helps compare properties)
  • Cash Flow: Income minus all expenses including mortgage (positive is essential)
  • Vacancy Rate: Expected percentage of time property sits empty (typically 5-10%)
  • 1% Rule: Monthly rent should be at least 1% of purchase price for good returns

Investment Strategies

  • Buy below market value and force appreciation through renovations
  • Focus on markets with strong job growth and population increases
  • Screen tenants thoroughly to minimize vacancy and property damage
  • Build cash reserves for unexpected repairs and vacancy periods
  • Consider hiring property management if you can't self-manage effectively