Cash flow
About $808 a month in the example. This is what stays after the mortgage. A negative number means the property needs outside money every month.
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Rental Property Calculator
Estimate monthly cash flow, annual NOI, cap rate, cash-on-cash return, and DSCR from the same assumptions used in the downloadable Excel calculator.
Property and financing
Change the inputs to screen one rental property. Values stay in this browser.
Income and vacancy
Monthly operating expenses
What each input means
Every field changes at least one of the five outputs, so it is worth knowing what belongs in each one.
| Input | What to enter | Why it matters |
|---|---|---|
| Purchase price | The contract price before closing costs | Sets the denominator for the cap rate |
| Closing costs + rehab | Title and lender fees plus initial repairs | Added to the down payment to size your cash invested |
| Loan amount | Principal borrowed after your down payment | Drives the monthly payment cash flow must cover |
| Interest rate | The note rate on the loan, not the APR | Small rate changes move debt service and cash flow |
| Loan term | Amortization period in years | Longer terms lower the payment but slow principal paydown |
| Monthly rent | Market rent for this property today | The largest single input in the model |
| Other monthly income | Parking, laundry, pet rent, fees | Count only income you can reasonably expect |
| Vacancy rate | Share of the year you expect to be empty | A 5% allowance is roughly 18 days a year |
| Property taxes | The current tax bill for the property | A recent sale can reset the assessment |
| Insurance | Landlord policy premium | Investor policies cost more than owner-occupant policies |
| Repairs and maintenance | Ongoing fixes and wear items | Keep one-time renovations in the rehab field instead |
| Property management | Manager fee, commonly 8% to 10% of rent | Enter zero only if you truly self-manage |
| HOA | Monthly association dues | Dues can decide whether cash flow is positive |
| Utilities | Utilities paid by the owner | Tenant-paid utilities remove this drag |
| Other expenses | Lawn, pest control, bookkeeping, permits | Rounds out the operating expense side |
A complete worked example
Using the default sample values, the calculator moves from monthly rent to a DSCR of 1.38. The steps below show where each number comes from.
- Step 1Effective income($4,200 rent + $250 other income) x 12 = $53,400 scheduled. A 5% vacancy allowance removes $2,670, leaving $50,730.
- Step 2Operating expenses$1,296 per month for taxes, insurance, repairs, management, and other costs, or $15,552 a year.
- Step 3NOI$50,730 effective income minus $15,552 operating expenses = $35,178 of annual net operating income.
- Step 4Debt service$336,000 at 6.5% for 30 years costs $2,123.75 a month, or $25,485 a year.
- Step 5Cash flow$35,178 NOI minus $25,485 debt service = $9,693 a year, about $808 a month.
- Step 6Returns$84,000 down + $27,500 closing and rehab = $111,500 invested. Cap rate 8.4%, cash-on-cash 8.7%, DSCR 1.38.
How to read cash flow, cap rate, cash-on-cash, and DSCR
Cap rate
8.4% in the example: annual NOI divided by purchase price. It ignores the loan, so it is the right number for comparing similar properties, not for judging your own return.
Cash-on-cash return
8.7% in the example: annual cash flow divided by the cash you invested. It answers how hard your own money is working.
DSCR
1.38 in the example: NOI divided by annual debt service. Many rental lenders look for at least 1.20, and a higher number is more cushion for vacancy or rate changes.
Limits of a rental property calculator
The calculator is a screening tool, and it is honest about what it cannot do.
- Rent, expenses, and interest rate are assumptions, and a soft rent market can turn positive cash flow negative.
- One property at a time. It does not rank a portfolio or compare several deals side by side.
- It does not model appreciation, tax treatment, depreciation, or refinancing.
- One year of cash flow is not total return. The five-year ROI workbook adds sale proceeds and annualized return.
- It does not replace an inspection, an insurance quote, or a lender's underwriting.
- Closing costs and rehab are entered as one lump; keep your own breakdown if you want that detail.
Rental property calculator FAQ
What does this rental property calculator estimate?
It estimates monthly and annual cash flow, NOI, cap rate, cash-on-cash return, and DSCR from the assumptions you enter.
Does cash-on-cash return include closing costs and rehab?
Yes. Total cash invested uses the down payment plus closing costs and initial rehab entered in the calculator.
Is this calculator an investment recommendation?
No. It is a planning and screening tool. Verify rent, expenses, financing, taxes, and other assumptions before making an investment decision.
How much vacancy should I use?
Start from the turnover you expect locally. A 5% vacancy allowance roughly equals 18 days a year, while 8% is closer to a month. If the property is in a market with slow re-leasing, test 8% to 10% and see how cash flow changes.
Should I include property management?
If you use a manager, enter their fee, which commonly runs 8% to 10% of collected rent. If you self-manage, enter zero but consider running a second scenario with a management fee, since your time may eventually be worth replacing.
Does cap rate include the mortgage?
No. Cap rate uses net operating income, which subtracts vacancy and operating expenses but not debt service. The mortgage only affects cash flow and cash-on-cash return, which is why two buyers with different loans see the same cap rate but different cash-on-cash returns.
What is a good DSCR?
Many rental lenders look for a DSCR of at least 1.20, meaning NOI covers debt service by about 20%. Requirements vary by lender and loan program, and a higher DSCR gives you more cushion when rent or expenses move. The calculator shows the DSCR that your own inputs produce.