Rental Property Calculator
Cash flow, cap rate, cash-on-cash and DSCR for any rental
Free to check. Based on the rent, not your tax returns.
Estimates, not a loan offer. DSCR lenders set their own minimums, rates and fees. We may earn a commission if you get a loan through this link. How we calculate · How we make money
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Numbers work? See what a lender would offer.The rate above is an example. A DSCR lender quote shows your real payment, which changes the cash flow and DSCR.
Free to check. Based on the rent, not your tax returns.
Check what a DSCR lender would offer
DSCR loans qualify the property on its rent, not your personal income. Lenders usually want a DSCR of 1.0 to 1.25, 20–25% down and a credit score around 660 or higher. Terms vary by lender, so compare a real quote with the numbers above.
Free to check. Based on the rent, not your tax returns.
We may earn a commission when you click. RealEstateCalculator.org is not a lender.
How this rental property calculator works
Use it as an investment property calculator for a single-family rental, condo or small multifamily: enter the purchase price, financing, rent and expenses to see the return on investment (ROI) the deal produces in cash.
The calculator follows a rental's money in the order it actually moves. It starts with rent and other income, takes out a vacancy allowance, then subtracts operating expenses to get net operating income (NOI). NOI is what the property earns before any mortgage. Subtract your principal and interest payment and what's left is cash flow.
From those numbers it also works out three ratios investors and lenders use: cap rate (NOI ÷ price), cash-on-cash return (annual cash flow ÷ the cash you put in) and DSCR (rent ÷ the monthly payment including taxes, insurance and HOA). Each has its own page if you want the details.
What to enter for expenses
Expenses are where most rental estimates go wrong. Use real figures where you can: property tax from the county records and an insurance quote for a landlord policy, which usually costs more than a homeowner policy. For the rest, investors often start with these rules of thumb and adjust for the property's age and condition:
- Vacancy: 5–8% of income
- Repairs: 5–10% of rent
- CapEx reserve for big items like the roof, HVAC and water heater: 5–10% of rent
- Property management: about 8–10% of collected rent, even if you plan to manage it yourself
Operating expenses before the mortgage often add up to 35–50% of rent. The expense summary in the form shows your percentage, so you can see if your numbers look too optimistic.
Reading the results
Positive cash flow means the property pays for itself with money left over each month. Cap rate lets you compare properties regardless of how they're financed. Cash-on-cash tells you the yield on your own cash. DSCR tells you whether the rent is likely to qualify for a DSCR loan, which is underwritten on the property's income instead of yours.
These are estimates. Your real numbers depend on the lease, the lender's terms and what the property actually costs to run. Use the copy link button to save a deal and compare it with others.
Frequently asked questions
How do you estimate rental property cash flow?
Start with rent, subtract a vacancy allowance, subtract operating expenses (tax, insurance, repairs, CapEx reserves, management, HOA and utilities you pay) to get NOI, then subtract the mortgage payment. What's left is cash flow.
How do you calculate ROI on a rental property?
The simplest measure is cash-on-cash return: annual cash flow divided by the cash you invested. A fuller ROI also counts loan principal paid down, appreciation and tax effects, which cash-on-cash leaves out.
What is the 1% rule?
A quick screen that says monthly rent should be at least 1% of the purchase price, so a $300,000 home should rent for $3,000. Few properties meet it in many markets. It's a filter, not an analysis, so run the full numbers above.
What is the 50% rule?
A rule of thumb that operating expenses, not counting the mortgage, will average about half of rent over time. If your expenses come in far below that, check that you've included repairs, CapEx, vacancy and management.
How is depreciation calculated on a rental property?
For U.S. residential rental property, the building's cost (not the land) is generally depreciated over 27.5 years. Depreciation affects taxes, not cash flow, and is recaptured when you sell, so check the details with a tax professional.