Rental Property CalculatorCash flow, cap rate, cash-on-cash return & ROI for any investment property
Enter one deal and see the whole picture: monthly cash flow after every expense, a letter grade against investor rules of thumb, where each rent dollar goes, how the deal holds up when things go wrong, and what it’s worth to you after 5, 10 or 30 years.
By Manzoor Ahmad · 13+ years of web development & SEO experienceUpdated October 19, 2026
Your deal
Returns are before income tax. Depreciation usually lowers taxes while you hold; depreciation recapture and capital gains tax apply when you sell.
Deal results
Calculating…
Where every rent dollar goes
Your monthly income followed through vacancy, operating costs and the mortgage to what’s left for you.
Investor rule check
How this deal stacks up against the screens lenders and investors use.
Stress test
Monthly cash flow if one thing goes wrong — the center line is break-even.
Make the numbers work
The three figures worth knowing before you make an offer.
Your return over the hold
Year-by-year snapshot
Rent and expenses grow at your rates; the loan amortizes on schedule.
| Year | Rent / mo | NOI / yr | Cash flow / yr | Loan balance | Value | Equity |
|---|
What is a rental property calculator?
A rental property calculator estimates whether an investment property makes money. It subtracts vacancy, operating expenses and the mortgage payment from the rent to find monthly cash flow, then measures the deal with cap rate (NOI ÷ price), cash-on-cash return (annual cash flow ÷ cash invested), DSCR (NOI ÷ debt payments) and long-term ROI including loan paydown and appreciation.
Most free rental calculators stop at a single cash-flow number. That number is useful, but it hides the questions that actually decide a purchase: Would a lender approve it? What happens in a bad year? What’s the most I should offer? And how much will I really have made when I sell? This calculator answers all of them from one set of inputs, using the same formulas lenders and experienced landlords use.
How to use this rental property calculator
- Enter the purchase and loanPrice, down payment, rate, term, closing costs and any repairs you’ll make before the first tenant moves in. Together these set your cash invested.
- Use realistic rentPull three to five comparable listings within a mile, not the seller’s pro forma. Set vacancy near your local rate — the national average was 7.3% in Q2 2026.
- Budget every expenseTax and insurance from real quotes, plus a percentage for management, maintenance and capital expenses. Leaving reserves at zero is the most common way to overpay.
- Read the grade and rule checkThe grade scores cash flow, cash-on-cash return, cap rate, DSCR, the 1% rule and IRR. Look at why it scored, not just the letter.
- Run the stress testIf one ordinary setback — a 10% rent cut or a rate one point higher — turns cash flow sharply negative, you need more margin.
- Set your hold periodSlide the hold year to see total profit, equity and IRR after selling costs. Use the maximum offer figure to set your bid.
Rental property formulas the calculator uses
Every number on this page comes from these standard formulas. They’re worth knowing by heart if you analyze deals regularly.
EGI = (rent + other income) × (1 − vacancy %)NOI = EGI − operating expenses (no mortgage)Cash flow = NOI − principal & interest paymentCap rate = annual NOI ÷ purchase price × 100CoC = annual cash flow ÷ (down + closing + repairs) × 100DSCR = NOI ÷ annual principal & interestGRM = price ÷ annual gross rentRent where cash flow = 0, after vacancy and % expensesTwo details trip people up. First, NOI never includes the mortgage — that’s what lets you compare properties regardless of how they’re financed. Second, percentage-based expenses such as management are charged on rent actually collected, so they fall when a unit sits empty. For a deeper look at each metric, use the dedicated cap rate calculator, which solves for price, NOI or rate, and the cash-on-cash return calculator, which finds the down payment that maximizes your yield.
Rental property expense benchmarks for 2026
When you don’t have the seller’s records yet, these ranges keep your estimates honest. Verify tax and insurance with real quotes before you offer.
| Expense | Typical range | How to estimate it |
|---|---|---|
| Vacancy & credit loss | 5–10% of rent | US rental vacancy was 7.3% in Q2 2026; use your metro rate and add a buffer for turnover |
| Property management | 8–12% of collected rent | Plus leasing fees, often half to a full month’s rent per new tenant |
| Maintenance & repairs | 5–10% of rent | Older homes and those with pools or large yards sit at the high end |
| Capital expenditures | 5–10% of rent | Divide replacement cost by remaining life for roof, HVAC, water heater and flooring |
| Property tax | 0.3–2.2% of value | Check the county record; a sale can trigger reassessment at the new price |
| Landlord insurance | Usually 15–25% above a homeowners policy | Get a dwelling-fire (DP-3) quote; coastal and wildfire areas cost far more |
| All operating costs | 35–50% of gross rent | The “50% rule” assumes half of rent goes to expenses before the mortgage |
Property tax is the expense that varies most from place to place. If you don’t know the bill yet, our property tax calculator estimates it from state averages or local millage rates.
Example: a $250,000 single-family rental
These are the calculator’s default inputs, so you can follow along above.
- Cash invested: 25% down ($62,500) + 3% closing ($7,500) + $5,000 repairs = $75,000.
- Mortgage: $187,500 at 8.0% over 30 years = $1,376 a month principal and interest.
- Income: $2,400 rent less 7% vacancy = $2,232 effective gross income.
- Operating costs: management $179 + maintenance $120 + CapEx $120 + tax $250 + insurance $117 = $785.
- NOI: $2,232 − $785 = $1,447 a month ($17,361 a year), a 6.94% cap rate.
- Cash flow: $1,447 − $1,376 = about $71 a month, or $852 a year — a 1.1% cash-on-cash return and a DSCR of 1.05.
The property nearly passes the 1% rule (0.96%) and has a healthy cap rate, but the 8% loan absorbs most of the income. It cash flows, barely, and most lenders would want a DSCR of 1.20–1.25. Over a 10-year hold, though, loan paydown and 3% appreciation lift the total return well above what the cash flow alone suggests. That trade-off — thin cash flow now, equity later — is the single most important thing to understand about buying rentals at 2026 rates.
Is my rental property a good investment?
There’s no single cutoff, but experienced investors usually want most of these to line up before buying.
| Metric | Weak | Solid | Strong |
|---|---|---|---|
| Cash flow per door | Below $0 | $100–$200 / mo | $200+ / mo |
| Cash-on-cash return | Under 4% | 6–10% | 10%+ |
| Cap rate | Under 4% | 5.5–7% | 7%+ |
| DSCR | Under 1.00 | 1.20–1.35 | 1.35+ |
| Rent-to-price (1% rule) | Under 0.6% | 0.8–1.0% | 1%+ |
| IRR over the hold | Under 6% | 9–12% | 12%+ |
Cap rate tells you about the property; cash-on-cash and DSCR tell you about the property with your loan. A great property can be a mediocre investment at the wrong price or rate. If the cash-flow side is the problem, test a value-add plan with the BRRRR calculator. If the numbers only work as a resale, run them through the house flip calculator.
Mistakes that make bad rentals look good
Sellers and agents quote the top of the market. Price your rent from signed leases or current listings that have actually rented.
A $12,000 roof every 20 years is $50 a month whether you budget for it or not. Skip it and the cash flow is imaginary.
Even a great tenant leaves eventually. One empty month a year is about 8% vacancy, which is above the national average.
Your time has a cost. Run the numbers with management included; if the deal only works without it, you’ve bought a job.
Many counties reassess at the sale price. The seller’s low property tax may jump the year after you buy.
Appreciation is real but uncertain, and you can’t spend it without selling or refinancing. Make sure the property can carry itself first.
Related property calculators
This page brings every rental metric together. Each tool below focuses on one of them in more depth.
Not sure you want to be a landlord yet? The rent vs buy calculator compares owning your own home with renting and investing the difference. You can browse every tool in our property and real estate calculators hub.
Rental property questions, answered
How do you calculate cash flow on a rental property?
Start with monthly rent plus other income, subtract a vacancy allowance, then subtract operating expenses (tax, insurance, management, maintenance, CapEx reserves, HOA and owner-paid utilities) to get net operating income. Subtract the mortgage principal and interest payment from NOI. What’s left is cash flow.
What is a good cash flow for a rental property?
Many investors look for at least $100–$200 a month per door after all expenses and reserves. At 2026 interest rates, many financed single-family rentals cash flow less than that, so investors often accept thinner cash flow in exchange for loan paydown and appreciation.
What is the 1% rule in real estate?
The 1% rule says monthly rent should be at least 1% of the purchase price — $2,500 a month on a $250,000 home. It’s a quick screen, not an analysis. Many good deals in higher-priced markets miss it, and some that pass it still lose money after expenses.
What is the 50% rule for rental property?
The 50% rule estimates that operating expenses, including vacancy but not the mortgage, will take about half of gross rent over time. If rent is $2,400, plan on roughly $1,200 for expenses and see whether the remaining $1,200 covers your loan payment.
What is a good cap rate for a rental property?
For residential rentals in 2026, 5.5% to 7% is generally considered solid. Expensive coastal metros often trade at 4% to 5%, while cheaper Midwest and Southern markets can exceed 8%, usually with more risk or management work.
What is a good cash-on-cash return?
Most investors target 6% to 10% in year one, and anything above 10% is strong. Compare it with what your cash could earn safely elsewhere; if a rental yields less than a Treasury bill, you’re being paid only for appreciation and loan paydown.
How much should I budget for vacancy?
Use your local rental vacancy rate if you can find it, plus a little extra for turnover time. The U.S. Census Bureau reported a national rental vacancy rate of 7.3% for the second quarter of 2026. One vacant month a year equals about 8.3%.
What DSCR do lenders require for a rental property?
Most DSCR loan programs want 1.20 to 1.25, meaning NOI covers the mortgage payment by 20–25%. Some lenders go down to 1.00 with a higher rate or larger down payment, and a few will lend below 1.00 with strict conditions.
Does this calculator include taxes and depreciation?
No. Results are before income tax. Residential rentals are depreciated over 27.5 years, which often shelters cash flow while you own the property, but that depreciation is recaptured and taxed when you sell. Talk with a tax professional about your situation.
What is IRR on a rental property?
The internal rate of return is the annual return that accounts for when money flows in and out: your initial cash, each year’s cash flow and the net sale proceeds at the end. It’s the best single measure for comparing a rental with other investments of different lengths.
How much money do you need to buy a rental property?
Conventional investment loans usually require 15% to 25% down, plus 2% to 4% for closing costs, any repairs and reserves of several months’ expenses. On a $250,000 property that’s commonly $60,000 to $85,000 in cash.
Is this rental property calculator free and private?
Yes. It’s free, needs no sign-up and runs entirely in your browser. Nothing you enter is sent to DexoCalc or stored.
Manzoor Ahmad
13+ years of web development & SEO experience · Founder, DexoCalc
Manzoor builds and maintains every DexoCalc calculator, including the full property and mortgage libraries. This tool models a full 30-year hold year by year, including amortization, rent and expense growth, appreciation, selling costs and IRR, and it starts from current Census vacancy data.
Sources
Results are estimates based on the assumptions you enter, not investment, tax or legal advice. Rents, expenses, interest rates and property values change — verify figures locally and consult a qualified professional before buying.