Free Rental Property Calculator

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Reviewed by: David Chen, CFA
This calculator is based on standard real estate investment financial formulas.

Use this free rental property calculator to quickly estimate the profitability of an investment property. Calculate key metrics like **Monthly Cash Flow** and **Cash-on-Cash Return (CoC)** to determine if an investment meets your financial goals.

Free Rental Property Calculator

Acquisition & Income

Annual Operating Expenses

Projected Expenses (%)

Financing Details

Key Investment Results

Cash-on-Cash Return (CoC)

Monthly Cash Flow

Calculation Steps: 

            

        


        
        

            
            
Rental Property Calculator Formula:

            

                
The core of real estate investment analysis relies on calculating Net Operating Income (NOI) and Cash-on-Cash (CoC) Return.

                
Monthly Cash Flow (CF_M)

                CF_M = Gross Monthly Rent - Operating Expenses - P&I Mortgage Payment
                
Cash-on-Cash Return (CoC)

                CoC (%) = (Annual Cash Flow / Initial Cash Invested) * 100
                

                    Formula Source: Investopedia – Cash on Cash Return | 
                    BiggerPockets – Investment Analysis
                

            


            
            
Variables Explained:

            
    
                
  • Purchase Price: The final cost of the property.
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  • Down Payment (%): The percentage of the purchase price paid upfront, determining the initial cash invested.
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  • Monthly Gross Rent: The total rent collected from the tenant each month.
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  • Annual Property Taxes / Insurance: Mandatory fixed annual expenses associated with the property.
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  • Maintenance/Repair (% of Rent): A percentage of monthly rent set aside for maintenance and capital expenditures. (Typically 5-10%)
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  • Vacancy Rate (% of Rent): The estimated percentage of time the unit will be vacant, resulting in lost rental income. (Typically 4-8%)
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  • Annual Interest Rate / Loan Term: Used to calculate the monthly principal and interest (P&I) mortgage payment.
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What is a Rental Property Calculator?

            

                A rental property calculator is an essential tool for real estate investors, designed to assess the financial viability and profitability of a potential investment property. By simulating income, operating expenses, and financing costs, it provides clear, quantifiable metrics that guide investment decisions.
            

            

                The two most critical outputs are Monthly Cash Flow and Cash-on-Cash Return (CoC). Positive cash flow means the property generates more income than it costs to operate and finance, while CoC measures the annual return on the actual cash invested (down payment and closing costs). Professional investors use these figures to compare multiple properties quickly and set clear acquisition criteria.
            


            
            
How to Calculate Cash-on-Cash Return (Example):

            
    
                
  1. Determine Initial Cash Invested: Calculate your down payment. Example: $100,000 Purchase Price * 20% Down = $20,000 Initial Cash.
    2. 
                
  2. Calculate Monthly Mortgage Payment (P&I): Use an amortization formula (or online tool) for the remaining loan balance.
    3. 
                
  3. Estimate Monthly Operating Expenses: Sum up 1/12 of annual taxes and insurance, plus monthly maintenance and vacancy reserves (as percentages of rent).
    4. 
                
  4. Find Monthly Cash Flow: Subtract the total Operating Expenses and the P&I Payment from the Gross Monthly Rent.
    5. 
                
  5. Calculate Annual Cash Flow: Multiply the Monthly Cash Flow by 12.
    6. 
                
  6. Calculate CoC Return: Divide the Annual Cash Flow (Step 5) by the Initial Cash Invested (Step 1) and multiply by 100 to get a percentage.
    7. 
            


            
            
Related Calculators:

            
Check out these other helpful real estate tools:

            

            
            
Frequently Asked Questions (FAQ):

            

                
What is a good Cash-on-Cash Return?

                For many real estate investors, a CoC return between 8% and 12% is considered good, but this varies significantly based on market, risk tolerance, and financing terms.
                

                
What is the 1% Rule?

                The 1% rule is a quick screening method suggesting that a property’s monthly rent should be at least 1% of its purchase price (e.g., a $200,000 property should rent for at least $2,000/month).
                

                
Do I include Principal Reduction in my cash flow?

                No. Cash flow only includes cash transactions (income minus expenses and debt service). Principal reduction is an equity gain, not cash flow, and is accounted for in total ROI.
                

                
What expenses are often forgotten?

                Investors often forget to account for capital expenditures (CapEx) like roof or HVAC replacement, or property management fees (if applicable), which can significantly reduce net income.
                

            


        

    




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