Rental Property Calculator
Stress-test a single buy-and-hold deal from every angle — cash flow, cap rate, cash-on-cash return, NOI, and a full exit analysis, all updating live as you tune the numbers.
Cash Flow
Monthly Surplus
Cap Rate
NOI / Price
CoC Return
Cash-on-Cash
IRR
Internal Rate
Purchase & Financing
Annual Operating Expenses
Rental Income
Exit & Hold Analysis
Monthly Cash Flow
-$219
Annual: -$2,633 · Total cash in: $55,000
5.3%
Cap Rate
-4.8%
Cash-on-Cash
0.84x
DSCR
10.4x
GRM
Income Statement
- Gross Rent
- $24,000
- Vacancy Loss
- -$1,680
- Other Income
- $0
- Effective Gross Income
- $22,320
- Operating Expenses
- -$8,986
- Net Operating Income
- $13,334
- Debt Service
- -$15,967
- Cash Flow
- -$2,633
Exit Analysis (10-Year Hold)
$335,979
Future Value
$82,369
Total Profit
8.9%
Est. IRR
Rules of Thumb Check
- ⚠️1% Rule — monthly rent is below 1% of purchase price
- ✅50% Rule — operating expenses are within ~50% of gross rent
Monthly Income vs Expenses
Running the Numbers on a Buy-and-Hold Rental
A single rental deal lives or dies on cash flow, not just appreciation — this calculator pressure-tests one property at a time against cap rate, cash-on-cash return, debt coverage, and a full exit projection so you know what you're actually buying before you sign. If you're comparing several strategies at once — rental ROI, a fix-and-flip, or a rent-vs-buy decision — see our real estate calculator for the multi-strategy view. For the mortgage math behind the financing, use our mortgage calculator and refinance calculator.
🔑 Key Formulas
NOI = EGI − Operating Expenses
Cap Rate = Annual NOI / Purchase Price × 100
Cash-on-Cash = Annual Cash Flow / Total Cash Invested × 100
DSCR = NOI / Annual Debt Service
EGI (Effective Gross Income) = Gross Rent − Vacancy Loss + Other Income.
🎯 Good Numbers to Target
- Cap Rate: 5-10% depending on market risk
- Cash-on-Cash: 8-12%+ is considered strong
- DSCR: 1.25+ preferred by lenders
- GRM: 8-12x is typical in most markets
- Vacancy: budget 7-10% conservatively
- 1% Rule: a quick monthly-rent-vs-price screen
📏 The 50% Rule, Explained
A quick rule of thumb: expect roughly 50% of gross rent to be absorbed by operating expenses, excluding the mortgage payment itself.
On $2,000/month rent, that's about $1,000 in operating expenses, leaving $1,000 to cover the mortgage and cash flow. Use the calculator above for the precise figure on your actual deal.
⚠️ Common Mistakes
- Skipping vacancy budgeting, even in hot markets
- Ignoring management fees — 8-12% even if self-managing
- Underbudgeting maintenance and capital reserves
- Underwriting on appreciation instead of cash flow
- Forgetting closing costs in total cash invested
— FAQ