🏘️Rental Property Calculator
Analyze cash flow and return on rental property investments. Calculate Cap Rate, Cash-on-Cash return, and 5-year projections.
Property Details
Rental Income
Operating Expenses
Projections
Understanding Rental Property Investment
Cap Rate
Cap Rate (Capitalization Rate) is annual NOI divided by purchase price. Shows return if you paid cash. Good: 6%+, Excellent: 8%+.
Cash-on-Cash Return
Annual cash flow return on your cash investment (down payment + closing costs). Accounts for leverage. Good: 8%+, Excellent: 12%+.
1% Rule
A quick rule: monthly rent should be at least 1% of purchase price. If a property costs $300,000, it should rent for $3,000+/month.
DSCR
Debt Service Coverage Ratio shows how much NOI covers mortgage payments. Below 1.0 means negative cash flow. Lenders typically require 1.25+.
NOI
Net Operating Income is income after all operating expenses, but BEFORE mortgage payments. It's the standard metric for valuing commercial properties.