Rental Property Calculator

Calculate rental property investment cash flows, tax depreciation, cap rate, return on equity (ROE), and 10-year internal rate of return.

Calculator Inputs

$
Total purchase price.
$
Out of pocket equity.
$
Monthly tenant rent.
%
Allowance for unrented weeks.
$
Debt service payment.

Calculated Results

Monthly Net Operating Cash Flow
+$485.20 / month ($5,822.40 / yr)
Cash-on-Cash Return 7.76%
Gross Rent Multiplier (GRM) 8.33
Total Initial Capital Invested $75,000.00
Values calculate live as you adjust inputs.

About Rental Property Calculator

Comprehensive real estate underwriting model projecting monthly net cash yield, tenant debt paydown, and equity appreciation.

What is Rental Property Calculator?

Comprehensive real estate underwriting model projecting monthly net cash yield, tenant debt paydown, and equity appreciation.

How to Use This Calculator

  1. Enter property price and cash invested.
  2. Enter monthly rent and vacancy rate.
  3. Enter monthly mortgage payment.
  4. Review net cash flow, cash-on-cash return, and GRM.

The Mathematical Formula & Variables

Cash Flow = Effective Gross Income - Operating Expenses - Debt Service

Step-by-Step Worked Example

Scenario: $250k property, $75k invested, $2,500 rent with 5% vacancy, $1,150 mortgage, $750 operating costs.

  1. Effective rent = $2,500 * 0.95 = $2,375.
  2. Total monthly outlay = $1,150 debt + $750 expenses = $1,900.
  3. Net monthly cash flow = $2,375 - $1,900 = $475/month ($5,700/year).
  4. Cash-on-cash = $5,700 / $75,000 = 7.60%.

Result: $475/mo cash flow, 7.60% Cash-on-Cash

Frequently Asked Questions

What is the 1% rule in real estate?

A screening guideline suggesting that a residential rental property should generate at least 1% of its purchase price in monthly gross rent (e.g. $2,000/mo rent for a $200,000 house).