Advanced Investment Calculator

Rental Property Calculator

Analyze cash flow, NOI, cap rate, cash-on-cash, DSCR, break-even occupancy, and total return with clean separation of operations and financing.

Inputs

Enter assumptions & costs

Acquisition & Financing

Income & Vacancy

Operating Expenses

Additional Other Expenses

Growth Assumptions - (%/yr)

How the rental property calculator works

This rental property calculator turns a listing into the numbers investors actually decide on: net operating income, cap rate, cash-on-cash return, DSCR, and monthly cash flow. It keeps operations and financing separate, so you can see how the property performs on its own and how leverage changes your return. Enter the purchase price, rent, and expenses and the metrics update instantly, which makes it easy to test different down payments, rents, or interest rates before you commit.

The core rental metrics

  • Net Operating Income (NOI) = annual rent minus operating expenses, before the mortgage
  • Cap Rate = NOI divided by purchase price, independent of financing
  • Cash-on-Cash = annual pre-tax cash flow divided by total cash invested
  • DSCR = NOI divided by annual debt payments, a key lender metric
  • Break-Even Occupancy = the rent collection needed to cover all costs

Worked example

Take a 250,000 dollar rental that brings in 2,200 dollars a month, or 26,400 dollars a year. Subtract taxes, insurance, a vacancy allowance, maintenance, and management of about 9,400 dollars and your NOI is roughly 17,000 dollars, a 6.8 percent cap rate. With 20 percent down and a 7 percent loan, the annual mortgage runs near 12,800 dollars, leaving about 4,200 dollars of yearly cash flow. On roughly 60,000 dollars invested that is a 7 percent cash-on-cash return, and the NOI covers debt at a DSCR near 1.33, comfortably inside most lender guidelines.

How investors read these numbers together

No single metric tells the whole story. Cap rate lets you compare properties without financing noise, cash-on-cash shows the return on your actual capital, and DSCR tells you whether a lender will finance the deal. Strong rentals usually clear a target cash-on-cash return, hold a DSCR above 1.2, and still cash flow after realistic vacancy and reserves. Reviewing them side by side is what keeps a good-looking listing from becoming a bad investment.

Frequently asked questions

What is a good cash-on-cash return on a rental property?

Many rental investors target a cash-on-cash return of 8 percent or higher, though acceptable levels vary by market and strategy. Cash-flow-focused investors in lower-cost markets may look for 10 percent or more, while investors in appreciating metros sometimes accept less current return in exchange for equity growth. Cash-on-cash divides your annual pre-tax cash flow by the total cash you put in, so it reflects the return on money actually invested.

What is a good cap rate for a rental property?

Cap rates commonly fall between 4 and 10 percent depending on the market and property class. Lower cap rates usually signal lower risk and stronger appreciation potential, while higher cap rates often mean more cash flow but higher risk or slower growth. Because cap rate uses net operating income before financing, it lets you compare properties independently of how each one is financed.

How do you calculate cash flow on a rental property?

Cash flow is monthly rent minus all operating expenses and the mortgage payment. Operating expenses include property taxes, insurance, maintenance, vacancy allowance, property management, and any HOA or utilities you cover. Subtract those and the loan payment from collected rent and the remainder is your monthly cash flow. This calculator separates operations from financing so you can see net operating income and cash flow clearly.

What is DSCR and why do lenders use it?

The debt service coverage ratio, or DSCR, is net operating income divided by annual debt payments. A DSCR of 1.0 means the property exactly covers its loan, while lenders often want 1.20 to 1.25 or higher for comfort. DSCR loans qualify the property on its own income rather than your personal income, which is why investors track this ratio closely when financing rentals.

What expenses should I include in a rental analysis?

A realistic analysis includes property taxes, insurance, a vacancy allowance of 5 to 10 percent, ongoing maintenance and repairs, capital expense reserves for big items like roofs and HVAC, property management even if you self-manage today, and any HOA or utility costs. Leaving these out is the most common reason a deal looks profitable on paper but underperforms in practice.

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