Rental Property Calculator
Last updated: March 2026
Rental Property ROI Analyzer
Calculate cash flow, cap rate, and cash-on-cash return for your real estate investment.
Property & Loan
Upfront cash includes down payment, closing costs and initial repairs. NOI-based DSCR: 1.14x. This is not a lender rent/PITIA qualification ratio. Replacement reserves are included in this conservative operating estimate.
Income & Expenses
Monthly Cash Flow
$203.25
Cash on Cash Return
2.68%
Cap Rate
6.50%
Monthly NOI
$1625.40
Monthly Income & Expenses Breakdown
Rental property ROI, cash flow and cap-rate planning
Quick answer: A rental-property return estimate should include rent, vacancy, operating expenses, financing, capital expenditures and the cash invested. Compare cash flow, cap rate and cash-on-cash return as separate measures.
Use realistic expenses
Include taxes, insurance, repairs, vacancy, management, utilities and reserves instead of relying only on gross rent.
Separate return measures
Cap rate excludes financing, while cash-on-cash return uses the cash invested. Do not compare them as interchangeable percentages.
Stress-test the deal
Model lower rent, vacancy, higher repairs and a different interest rate before treating the result as an investment decision.
Scenarios to calculate
- Compare financed and all-cash purchases.
- Stress-test vacancy and maintenance reserves.
- Compare cap rate with cash-on-cash return.
Next: compare general investment growth, estimate rental-property financing, review short-term-rental regulations.
Continue your financial research
Use these closely related USFinNexus guides and tools to plan your next step.
Financing a rental differs from financing your residence. Check investment-property mortgage pricing factors.
For multiple units, compare multifamily investing costs and risks.
Fractional ownership has a different structure; read the fractional real estate investing guide.
Rental Property Investment — Frequently Asked Questions
What is a good Cap Rate for a rental property?
A "good" Cap Rate typically ranges from 5% to 10%, but it heavily depends on the market. Properties in high-appreciation, low-risk areas (like prime locations in major cities) often have lower cap rates (4-6%). Properties in higher-risk or lower-appreciation areas may offer higher cap rates (8-12%+).
What is a good Cash-on-Cash Return?
Many real estate investors aim for a Cash-on-Cash return of 8% to 12% or higher. This metric tells you how hard your initial invested cash is working for you during the first year of ownership.
How do I estimate CapEx and Maintenance?
CapEx (Capital Expenditures) covers big-ticket replacements like a new roof, HVAC, or appliances. Maintenance covers smaller, routine fixes. A conservative estimate is setting aside 5% to 10% of gross rent for CapEx, and another 5% to 10% for Maintenance.
Should I use a property manager?
Property managers typically charge 8% to 12% of collected rent. If you live far from the property or want a truly passive investment, the fee is usually worth it. If you house-hack or live locally and want to maximize cash flow, managing it yourself saves money but costs time.
Illustrative comparison scenarios
| Monthly rent | Monthly cash flow | Cash-on-cash |
|---|---|---|
| $2,000 | -$264 | -3.48% |
| $2,300 | -$30 | -0.40% |
| $2,600 | $203 | 2.68% |
| $2,900 | $437 | 5.76% |
| $3,200 | $671 | 8.84% |
Educational scenarios, not quotes, approvals, investment forecasts or tax advice. See methodology and limitations.