Rental Property Calculator

Your details

The agreed purchase price of the property.
Down payment as a percentage of the purchase price. Typical investment property loans require 20-25%.
%
Annual interest rate on your mortgage loan.
%
Length of the mortgage in years.
Lender fees, title, escrow, and other closing costs paid upfront. Typically 2-5% of the loan.
Any upfront renovation costs needed before the property is rent-ready.
Expected gross monthly rent at full occupancy.
Additional income: parking, laundry, storage, or pet fees.
Expected percentage of time the unit sits empty. The national average is roughly 5-8%.
%
Property manager fee as a percentage of gross rents collected. Set to 0 if self-managing.
%
Expected annual rent growth rate used in the IRR and projection chart.
%
Annual property tax bill. Check county assessor records for an estimate.
Annual landlord or dwelling fire insurance premium.
Budget roughly 1% of property value per year for ongoing maintenance.
Homeowners association dues if applicable.
Utilities paid by owner, landscaping, accounting, or any other recurring costs.
How many years you plan to hold before selling. Used to calculate IRR and total return.
years
Expected annual growth in the property value. US long-run average is about 3-4% per year.
%
Real estate agent commissions and closing costs when you sell, typically 5-7% of sale price.
%
Currency
Monthly cash flowNegative cash flow
-$423

Net income after all expenses and mortgage payments

Annual cash flow-$5,081
Net Operating Income (NOI)$14,080
Cap rate0.05%
Cash-on-cash return-7.7%
IRR (annualized total return)0.05%
Gross Rent Multiplier (GRM)12.5
Monthly mortgage payment$1,597
Total cash invested$66,000
Total return on exit$51,402
1% rule checkFail - 0.67% (< 1%)
50% rule checkPass - expenses are 41.3% of gross income (<= 50%)
-7.7% %
Negative<0%Marginal0%-6%Decent6%-10%Strong10%+

Cash-on-cash return is -7.7% - negative.

  • Cash flow is negative by $423/month - you would be out of pocket each month.
  • The cap rate is 4.69%. Typical residential investment properties trade at 4-8%. A higher cap rate means a better income yield relative to price.
  • The Gross Rent Multiplier is 12.5. A GRM below 10 is considered attractive; below 8 is excellent.
  • The estimated IRR over 10 years is 4.7%, accounting for cash flow, appreciation, and loan paydown.

Next stepConsider negotiating a lower purchase price, increasing rent, or reducing expenses to reach positive cash flow before committing.

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