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Rental Property Calculator

Check the numbers on a rental property: net operating income, cap rate, cash flow, and cash-on-cash return. The rental property calculator includes vacancy, taxes, and the mortgage.

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Reviewed by on
Purchase and loan

Income and costs

Cap rate
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Estimate only. Not financial advice.

How to use the Rental Property Calculator

  1. Enter the Purchase price, down payment, closing costs, and the loan rate and term.
  2. Under Income and costs, enter the monthly rent, vacancy, property tax, insurance, maintenance, management, and other costs.
  3. Press Calculate. The cap rate appears first, followed by cash flow, cash-on-cash return, and the other measures.

How it works

collected rent = rent × 12 × (1 − vacancy)
NOI = collected rent − tax − insurance − maintenance − management − other
cap rate = NOI ÷ price
cash flow = NOI − yearly mortgage payments
cash-on-cash = yearly cash flow ÷ (down payment + closing costs)
gross rent multiplier = price ÷ yearly rent

Maintenance and management are a share of the collected rent.

Examples

  • A $300,000 property with $2,000 rent, 5% vacancy, $2,500 tax, $1,160 insurance, and 5% maintenance has an NOI of $18,000: a 6.0% cap rate.
  • Financed with $60,000 down at 7% for 30 years, the mortgage is $1,596.73 a month, so the property loses about $96.73 a month before appreciation.

Cap rate or cash-on-cash?

Cap rate ignores financing, so it compares properties on equal terms. Cash-on-cash return measures what your own money earns once the mortgage is paid, so it shows the effect of borrowing. A property can have a decent cap rate and still lose money each month if the loan is expensive.

Limitations

  • Income tax, depreciation, and appreciation are not included.
  • Capital repairs such as a new roof are not included unless you add them to other costs.
  • Rent and costs stay flat. Real figures change every year.

Sources and method review

The Federal Reserve describes net operating income and direct capitalization. This calculator divides its modeled annual NOI by the entered purchase price; cash-on-cash return also counts the entered financing. It is a simplified property scenario, with the exclusions stated above, and does not estimate market value or guarantee rental income.

Technical content review: 27 October 2026. The documented method and assumptions were compared with the calculator code and the cited source. This is not a review by a licensed financial or tax adviser.

Frequently asked questions

What is a good cap rate?

There is no single figure. Cap rates tend to be lower in expensive, stable markets and higher where prices or rents carry more risk, so compare a property with similar ones nearby.

What is the 1% rule?

A quick screen: monthly rent should be at least 1% of the price. The example property at $2,000 on $300,000 falls short at 0.67%.

Does cap rate include the mortgage?

No. Cap rate uses NOI before debt payments. Cash flow and cash-on-cash return include them.

Often used together with Rental Property Calculator.