Rental Property Calculator
Estimate monthly cash flow, cap rate, and cash-on-cash return for a rental property investment.
Taxes, insurance, maintenance, management
Monthly cash flow
$590.00
What Your Result Means
Monthly cash flow is what's left over after collecting rent and paying the mortgage and expenses - positive cash flow means the property is putting money in your pocket each month. Cap rate measures the property's return independent of financing, while cash-on-cash return measures your actual return on the cash you invested (your down payment).
How It Is Calculated
Cash Flow = (Rent × (1 - Vacancy Rate)) - Mortgage Payment - Expenses
Cap Rate = Annual Net Operating Income / Purchase Price
Cash-on-Cash Return = Annual Cash Flow / Down Payment
Worked Example
A $250,000 property with $50,000 down, $2,200 monthly rent, a $1,100 mortgage payment, $400 in monthly expenses, and 5% vacancy produces roughly $610/month in cash flow - a strong cash-on-cash return relative to the down payment.
Important Assumptions
- Vacancy rate reduces effective rental income to account for periods without a tenant.
- Monthly expenses should include property tax, insurance, maintenance, and management fees for an accurate result.
Frequently Asked Questions
- What's a good cap rate?
- This varies significantly by market - cap rates in expensive coastal markets often run lower (3-5%) than in more affordable markets (7-10%+). Compare within your specific local market.
- What expenses should I include?
- Property tax, insurance, maintenance reserves, property management fees, and HOA dues if applicable - anything recurring beyond the mortgage payment itself.
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Methodology
This calculator uses standard real estate investment formulas for cap rate and cash-on-cash return. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.