Rental Property ROI Calculator
Cap rate, cash flow, cash-on-cash return, DSCR — analyze any rental in 60 seconds.
Purchase
Income & Expenses
Cash flow / mo
$13
$156/year
Cap rate
6.03%
NOI / price
Cash-on-cash return
0.15%
on $100.5K cash
DSCR
1.01
lenders want ≥1.25
Verdict
Marginal — depends on appreciation
Income & Expense Breakdown (annual)
- Gross rent
- $33,600
- − Vacancy
- −$1,680
- Effective rent
- $31,920
- − Property tax
- −$4,200
- − Insurance
- −$1,500
- − HOA
- −$0
- − Maintenance
- −$2,554
- − Management
- −$2,554
- NOI
- $21,113
- − Mortgage
- −$20,957
- Cash flow
- $156
Investor Rules of Thumb
- 1% rule
- 0.80%
- GRM
- 10.4×
- Cash needed
- $100.5K
- Mortgage P&I
- $1,746/mo
About this tool
The rental property analyzer real estate investors actually use. Calculates cap rate, cash flow, cash-on-cash return, DSCR, GRM, and the 1% rule in one view. Includes the four expenses beginners forget — vacancy, maintenance, management, and capital expenditures — so the numbers reflect reality, not a pro-forma fantasy.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter purchase details
Price, down payment, closing costs, rehab, mortgage rate, and term.
- 2
Add income and expenses
Monthly rent, vacancy %, property tax, insurance, HOA, maintenance %, management %.
- 3
Read the metrics
Cap rate, cash flow, cash-on-cash, and DSCR all calculated in real time.
- 4
Use the verdict
A quick screening signal that combines cap rate and cash-on-cash to flag deal quality.
The four expenses that kill "great deals"
- Vacancy: assume 5–8% even in hot markets. Tenants move out, units sit empty between leases.
- Maintenance: 8–10% of rent for ongoing repairs (clogged drains, broken appliances, paint).
- Capital expenditures: roof every 20 years, HVAC every 15, water heater every 10. Budget 1% of property value annually as a sinking fund.
- Management: even if self-managing, value your time at 8–10% of rent. Your time is not free.
A pro-forma that shows $400/month cash flow with no vacancy, no maintenance, and no management is fiction. Plug in realistic numbers and many "good deals" become break-even or negative. The deals that survive these filters are the ones worth doing.
Frequently asked questions
What is a good cap rate?+
Cap rate (NOI ÷ purchase price) varies by market. In high-demand US metros (LA, NYC, Bay Area), 4–5% is typical. Mid-tier cities (Atlanta, Denver) target 6–8%. Cash-flow markets (Kansas City, Indianapolis, Memphis) often hit 8–10%+. Lower cap rate generally means higher appreciation potential.
What is the 1% rule?+
The 1% rule says monthly rent should be at least 1% of the purchase price. A $300,000 property should rent for $3,000+/month. In most US markets in 2026 this is hard to achieve — it remains a useful screening filter for cash-flow markets.
What is cash-on-cash return?+
Cash-on-cash return = annual cash flow ÷ total cash invested (down payment + closing + rehab). It tells you the actual return on the money you put in, ignoring loan paydown and appreciation. A 10%+ cash-on-cash is considered strong.
What expenses do beginners forget?+
New investors typically forget: vacancy (assume 5–8%), maintenance (8–10% of rent), management fees (8–10% even if self-managed, to value your time), capital expenditures (roof, HVAC, plumbing — budget 1% of property value annually). These four can turn a "great deal" into a money pit.
What is DSCR and why do lenders care?+
Debt Service Coverage Ratio = NOI ÷ annual debt service (mortgage P&I). DSCR-only loans (no income verification) require 1.20–1.25 minimum. A DSCR of 1.5+ qualifies for the best rates. DSCR < 1.0 means the property does not generate enough to cover the mortgage.
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