Rental Property Calculator
Estimate whether a rental’s rent covers its operating costs and mortgage, and see cap rate beside cash-on-cash return.
Use it when you want cash flow from a rent, a mortgage, and the expenses you enter.
Compare scenarios
How we calculated this
Collected rent is lowered by the vacancy rate. Operating expenses are tax, insurance, management, maintenance, and HOA. NOI is collected rent minus those expenses and does not subtract the mortgage. Cash flow then subtracts principal and interest. Cap rate is annual NOI divided by price. Cash on cash is annual cash flow divided by down payment plus closing costs.
What does this mean?
At these assumptions the mortgage is larger than NOI by about $369.42 a month.
Your assumptions
Edit assumptions- Purchase price
- $350,000
- Monthly rent
- $2,400.00
- Vacancy
- 5%
- Management
- 8% of collected rent
- Maintenance
- $150.00 / month
This is a planning estimate for a single rental. Vacancy, repairs, and rent can differ from the assumptions. It is not a valuation or a projection of profit.
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How the estimate is calculated
Collected rent is the asking rent reduced by vacancy. Operating costs are tax, insurance, management, maintenance, and HOA.
NOI is collected rent minus operating costs. Cash flow subtracts the mortgage. Cap rate ignores the loan. Cash-on-cash uses your cash invested.
Rental formulas
Cap rate is annual net operating income divided by price. Cash-on-cash is annual cash flow after the mortgage, divided by down payment plus closing costs.
Example
- Enter the price, rent, and a vacancy allowance.
- Enter the loan terms.
- Read cash flow, then compare cap rate with cash-on-cash.
With the numbers filled in on this page, the estimate is $369.42 per month.
What changes the result
Vacancy
A few empty weeks change the year’s income. Five percent is about two and a half weeks.
Debt
A property can have a healthy cap rate and still lose cash after the mortgage.
Maintenance
A flat monthly allowance will not match a roof or a turnover. Treat it as a budget, not a cap.
Questions
What is the difference between cap rate and cash-on-cash?
Cap rate ignores financing. Cash-on-cash includes the mortgage and the cash you actually put in.
Is appreciation included?
No. This page is about current income and expenses.
Does NOI include the mortgage?
No. NOI is before debt. Cash flow is after principal and interest.