Quick start
- Open the Rental Property Calculator.
- Enter property price, down payment, mortgage rate, loan term, and monthly rent.
- Use the first example, "Rental house: $300k property, $2,400 rent, 25% down", if you want to see a filled-out estimate before entering your own values.
- Calculate, read the formula line, then copy the result only after the amounts, percentages, time periods, or assumptions look right.
Best uses
Start here if one of these sounds like your job. The examples below show which inputs matter most.
- Screen whether monthly rent covers estimated costs.
- Estimate cap rate before financing effects.
- Estimate cash-on-cash return after mortgage payment.
- Compare vacancy, maintenance, tax, insurance, and expense assumptions.
What this calculator is for
The Rental Property Calculator screens a rental deal before you spend hours in a spreadsheet. It separates property performance before financing from the cash flow after the mortgage payment.
Good fit examples: Screen whether monthly rent covers estimated costs. Estimate cap rate before financing effects.
What to enter
Finance estimates are sensitive to small input changes. Check whether a field expects a monthly amount, annual amount, dollar value, or percent before calculating.
- Enter property price, down payment, mortgage rate, loan term, and monthly rent.
- Enter vacancy percent, monthly operating expenses, property tax, insurance, maintenance reserve, and closing costs.
- Use boring, realistic numbers. A rental can look amazing only because vacancy, repairs, HOA, or management costs were left out.
Example walkthrough
Try the calculator example: Rental house: $300k property, $2,400 rent, 25% down. The example result is $129.35 monthly shortfall, 5.32% cap rate.
- $300,000 property, $75,000 down, 6.75% loan, and $2,400 rent starts with a $225,000 mortgage.
- After $120 vacancy, $260 operating costs, $300 property tax, $140 insurance, and $250 maintenance reserve, monthly NOI is $1,330. The estimated mortgage payment is $1,459.35, so the example shows a $129.35 monthly shortfall.
Formula and steps
In plain language: The calculator subtracts vacancy reserve, taxes, insurance, maintenance reserve, and operating expenses from rent for NOI. It then subtracts the mortgage payment for cash flow and compares NOI and cash flow with property price and cash invested. For the default example: $2,400 rent - $120 vacancy - $260 operating costs - $300 property tax - $140 insurance - $250 maintenance reserve = $1,330 monthly NOI. The estimated mortgage payment is $1,459.35, so monthly cash flow is a $129.35 shortfall.
If the estimate looks surprising, check the formula and inputs before using the answer in a budget, comparison, or planning note.
How to read the answer
Start with the headline result. Then read the supporting lines to see what made the number larger or smaller, such as rates, time periods, costs, taxes, fees, discounts, or contributions.
- NOI means net operating income before loan payment.
- Cap rate compares annual NOI with property price before financing.
- Cash-on-cash return compares annual cash flow after the mortgage payment with down payment plus closing costs.
- A negative cash-flow result is not a bug. It means the rent and assumptions you entered do not cover the estimated loan payment and operating costs.
Common mistakes to avoid
Most bad finance estimates come from mixing rates, terms, monthly amounts, and annual amounts. The other common mistake is using a planning estimate as if it were a final quote.
- Do not forget repairs, vacancy, property management, HOA, utilities, legal costs, capex reserves, local rules, rent control, and tenant risk.
- Do not treat cap rate and cash-on-cash return as the same thing.
- Do not use this as tax advice. IRS rental rules can involve income, expenses, depreciation, personal-use rules, passive-loss limits, and records this quick calculator does not handle.
- Do not use this as lender approval. Lenders use their own rental income worksheets, leases, history, appraisal notes, vacancy factors, and underwriting rules.
What to try next
A related money tool can help check the same question from another angle before you rely on one result.
- Use Real Estate Calculator for a sale-profit estimate.
- Use Mortgage Calculator to inspect the loan payment separately.
Sources and estimate notes
This guide links to public financial, consumer, statistical, or tax references where they are useful for understanding the calculator context.
Source links improve transparency, but they do not turn a quick calculator into professional advice or a final loan, tax, payroll, or investment answer.
Worked examples for Rental Property Calculator
$129.35 monthly shortfall, 5.32% cap rate
$189.58 monthly shortfall, 4.65% cap rate
$552.08 monthly cash flow, 7.50% cap rate
FAQ in plain language
When should I use the Rental Property Calculator?
Use it when you want to test the exact inputs on this page: Screen whether monthly rent covers estimated costs. Estimate cap rate before financing effects. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
What do the main Rental Property Calculator inputs mean?
Property price means the purchase price used for cap rate, loan amount, and maintenance reserve math. Down payment and closing costs means the cash invested before the property starts producing income. Monthly rent means expected rent before vacancy, repairs, taxes, insurance, and loan payment. Vacancy reserve means a simple rent haircut for empty months, late turnover, or rent that does not arrive on schedule. Operating expenses means monthly non-loan costs such as management, HOA, utilities paid by the owner, routine repairs, or service contracts.
Is NOI the same as cash flow?
No. NOI is rent minus vacancy and operating expenses before the loan payment. Cash flow is what is left after the estimated mortgage payment too.
Does this include rental-property taxes or depreciation?
No. IRS rental rules can include income, expenses, depreciation, passive-loss limits, personal-use rules, and recordkeeping. This page only screens the deal math.
Can a lender use this rental income number?
No. Lenders use their own rental income rules, leases, history, appraisals, vacancy factors, and underwriting worksheets. Use this as a first-pass check only.
What is the Rental Property Calculator doing with my numbers?
In plain language: The calculator subtracts vacancy reserve, taxes, insurance, maintenance reserve, and operating expenses from rent for NOI. It then subtracts the mortgage payment for cash flow and compares NOI and cash flow with property price and cash invested. For the default example: $2,400 rent - $120 vacancy - $260 operating costs - $300 property tax - $140 insurance - $250 maintenance reserve = $1,330 monthly NOI. The estimated mortgage payment is $1,459.35, so monthly cash flow is a $129.35 shortfall.
How should I read the Rental Property Calculator answer?
Monthly cash flow is the after-loan result. Monthly NOI shows the property before financing. Cap rate compares annual NOI with purchase price. Cash-on-cash return compares annual cash flow with down payment plus closing costs.
Related tools
- Real Estate Calculator Estimate sale profit, net proceeds, ROI, and equity multiple from a property sale scenario.
- Mortgage Calculator Estimate monthly principal, interest, taxes, insurance, PMI, and HOA costs.
- ROI Calculator Calculate simple ROI from starting cost, ending value, income, and costs.
Keep exploring
If this guide is close but not exact, these links keep you near the same kind of problem.
- Finance Browse the full category for related tools that help with the same job.
- All free tools Search the complete Access Free Tools library by task, category, or tool name.
- All calculator and utility guides Find more plain-language examples, formulas, mistakes, and result explanations.
- Free calculator resources Start here when you are not sure which calculator page fits.
Privacy and copying results
Recent answers stay visible only while you work in the current browser tab. They are not sent to a server.
Use Copy answer when you want to save the inputs and result in notes, homework, a message, or a project list. Check the units, labels, and limits before copying.