Rental Property Investment Calculator

Analyze any rental property investment — calculate monthly cash flow, cap rate, cash-on-cash return, and full ROI with all operating expenses.

Purchase Details

Purchase Price ($)

Down Payment (%)

Mortgage Rate (% annual)

Loan Term (years)

Rental Income

Monthly Rent ($)

Vacancy Rate (%)

Typical: 5–10%

Operating Expenses

Annual Property Tax ($)

Annual Insurance ($)

HOA / Month ($)

Maintenance (% of value/year)

Typical: 1–2% of property value

Property Management (% of rent)

Typical: 8–12%. Enter 0 if self-managing

All real estate

Quick summary

A rental property investment requires analyzing both cash flow (can this property pay its own way?) and returns (is this the best use of my capital?). Cap rate ignores financing; cash-on-cash return reflects the actual return on your cash investment. Both metrics together give a complete picture.

Reviewed by Simple Calculators TeamLast reviewed July 10, 2026

How to use this calculator

Enter the inputs requested by the calculator.
Choose the units or options that match your situation and review the assumptions.
Run or update the calculation to see the result.
Review the result, breakdown, and formulas shown on the page.
Check the inputs, units, dates, and limitations before saving or sharing the result.

Property Investment Formulas

Cap Rate

\text{Cap Rate} = \frac{\text{Net Operating Income}}{\text{Purchase Price}} \times 100

NOI: Annual rent minus operating expenses (excluding mortgage)
Purchase Price: Property purchase price

Worked example

$15,000 NOI, $300,000 purchase price

Given: NOI = $15,000
Price = $300,000
Calculation: $\frac{15{,}000}{300{,}000} \times 100$
Result: 5% cap rate

Cash-on-Cash Return

\text{CoC Return} = \frac{\text{Annual Cash Flow}}{\text{Total Cash Invested}} \times 100

Annual Cash Flow: Net income after ALL expenses including mortgage
Total Cash Invested: Down payment + closing costs

Worked example

$3,600 cash flow, $63,000 invested

Given: Cash Flow = $3,600/yr
Invested = $63,000
Calculation: $\frac{3{,}600}{63{,}000} \times 100$
Result: 5.7% cash-on-cash return

Frequently asked questions

What is a good cap rate for rental property?

Cap rates vary by market and property type. In high-cost cities (NYC, SF), 3–5% is considered good. In mid-tier markets, 5–8% is typical. Rural and high-risk areas may see 8–12%+. A 'good' cap rate is relative to local market conditions and your investment goals.

What is cash-on-cash return?

Cash-on-cash return measures your annual cash flow divided by the total cash you invested (down payment + closing costs). A 6–10% cash-on-cash return is generally considered good for rental properties. Unlike cap rate, it accounts for financing.

How much should I budget for maintenance?

The standard rule is 1–2% of property value per year for maintenance. A $300,000 property would budget $3,000–$6,000/year ($250–$500/month). Older properties, complex systems, or rental properties with tenants may need higher reserves.

What vacancy rate should I use?

5–8% is a typical vacancy assumption for single-family rentals (approximately 3–4 weeks empty per year). Multi-family properties in high-demand areas may see 3–5%. Use local rental market data for the most accurate estimate.

Should I include property management in my analysis?

Yes, even if you plan to self-manage initially. Property management costs 8–12% of rent. Including it in your analysis ensures the deal works even if you eventually hire a manager, and reflects the true labor cost if you're doing it yourself.

Key terms

Cap Rate: Net Operating Income divided by property value — measures property yield independent of financing
Cash-on-Cash Return: Annual cash flow divided by total cash invested — reflects actual return on your equity
Net Operating Income (NOI): Annual rental income minus all operating expenses, excluding mortgage payments
Gross Yield: Annual gross rent divided by property value — simple yield before expenses
Vacancy Rate: Percentage of time a property is expected to be vacant and not generating rental income

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.

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