Rental property calculator
Enter a price, your financing and the rent to see a long-term rental's cash flow and returns. Change any number and the results update.
Also assumed: a 30-year loan, 5% of rent each for repairs and capital expenditures, and tenants paying utilities.
Results
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A full analysis adds every expense, a 30-year projection, what-if sliders, a PDF report and a link to share with partners.
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A $250,000 single-family rental bought with 20% down at 6.5%, renting for $2,400 a month, with $3,000 a year of property tax and $1,500 of insurance.
- Purchase price
- $250,000
- Closing costs
- $7,500
- Down payment
- 20%
- Interest rate
- 6.5%
- Monthly rent
- $2,400/mo
- Property tax
- $3,000/yr
- Insurance
- $1,500/yr
- HOA
- $0/mo
- Vacancy
- 5%
- Property management
- 10%
- Monthly cash flow
- $173
- Cash-on-cash return
- 3.6%
- Cap rate
- 6.9%
- Total cash needed
- $57,500
It cash-flows $173 a month, but that's a 3.6% cash-on-cash return on $57,500 invested, under the common 8% target. A lower price or higher rent would be needed to reach it.
How it's calculated
- Monthly cash flow
- Rent, minus the mortgage payment, property tax, insurance, HOA, and reserves for vacancy, repairs, capital expenditures and management.
- Cash-on-cash return
- A year of cash flow divided by the cash you put in: down payment plus closing costs.
- Cap rate
- A year of net operating income (rent minus operating expenses, before the mortgage) divided by the price.
- Total cash needed
- Down payment plus closing costs.
What's a good result?
Common rules of thumb: $200 or more a month of cash flow, a cash-on-cash return of 8% or more, and a cap rate of 8% or more are strong. Many investors accept less in markets where prices tend to rise faster.
Questions
Why reserve for repairs and vacancy if nothing is broken?
Because those costs come eventually and in lumps: a turnover, a water heater, a roof. Setting aside a percentage of rent each month shows the cash flow you can actually count on.
Is management worth including if I self-manage?
Set it to 0% if you'll manage it yourself, but many investors keep 8–10% in so the deal still works if they hire a manager later.
What does the full analysis add?
Utilities, PMI, rehab, all-cash purchases, a 30-year projection, break-even and target prices, what-if sliders, saved scenarios and a PDF report.
Learn more: Long-term rentals. More calculators: Airbnb · Fix & flip · BRRRR · Mortgage · Cap rate · Cash-on-cash return · 70% rule