Free tool
Rental property ROI calculator
See whether a rental pays for itself. Enter the price, financing, rent, and costs to estimate your monthly cash flow, cap rate, and cash-on-cash return.
Purchase and financing
Income and expenses
Monthly cash flow
$101
Cap rate
6.2%
Cash-on-cash return
1.5%
Mortgage (monthly)
$1,965
Based on a $320,000 loan and $83,000 invested. Net operating income is $24,792 a year before financing.
A general estimate, not financial or investment advice. Figures exclude taxes, depreciation, and future appreciation.
What the numbers mean
- Monthly cash flow
- Rent left over after the mortgage and every operating cost. Positive means the property pays you each month.
- Cap rate
- Net operating income divided by the purchase price. It ignores financing, so it compares properties on their own merits.
- Cash-on-cash return
- Your yearly cash flow divided by the cash you put in (down payment plus closing costs). It reflects your actual leverage.
Common questions
What is a good cap rate for a rental property?
It depends on the market and risk. Many investors look for something in the range of 4 to 8 percent, with higher cap rates in markets that carry more risk or need more work. Compare against similar properties in the same area rather than a single target number.
What counts as good cash flow?
Any positive monthly cash flow means the rent covers the mortgage and costs with money to spare. Many landlords aim for a cushion per unit to absorb repairs and vacancy, so a larger positive number gives you more room.
Does this calculator include taxes and appreciation?
No. It is a snapshot of operating cash flow and return. It does not model income tax, depreciation, mortgage paydown, or future price appreciation, which all affect total return over time.
Also try the rent increase calculator or see all free tools.