Rental Property Calculator
Estimate the monthly cash flow, cash-on-cash return and cap rate of a rental property with financing.
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About the Rental Property Calculator
This rental property calculator estimates the return on an investment property. It subtracts the mortgage payment and operating expenses from rent to find monthly cash flow, then divides yearly cash flow by the cash you invested to get cash-on-cash return. It also shows the cap rate, the 1% rule check and the debt service coverage ratio.
How to use it
- Enter the price, down payment, mortgage rate and loan term.
- Enter closing and repair costs, monthly rent, vacancy and monthly operating expenses.
- Press Calculate rental return to see cash flow, cash-on-cash return and cap rate.
Rental property formulas
- Cash flow = effective rent − operating expenses − mortgage payment
- Cash-on-cash return = annual cash flow ÷ total cash invested
- Cap rate = net operating income ÷ price
- DSCR = NOI ÷ annual debt service
Common rental investing benchmarks
| Metric | Common target |
|---|---|
| Cash-on-cash return | 8% to 12% or more |
| Cap rate | 5% to 8% |
| 1% rule | Rent at least 1% of price (often hard in high-cost markets) |
| DSCR | 1.25 or higher for many lenders |
Frequently asked questions
How do I calculate rental property cash flow?
Subtract operating expenses and the mortgage payment from your effective rent after vacancy.
What is cash-on-cash return?
Annual pre-tax cash flow divided by the total cash you invested, such as down payment and closing costs.
What is a good cash-on-cash return?
Many investors look for 8% to 12% or higher, depending on risk and market.
What is the 1% rule?
A quick screen that monthly rent should be at least 1% of the purchase price.
Does this include taxes and depreciation?
No. It is a pre-tax estimate. Talk to a tax professional about depreciation and deductions.
Last reviewed: November 2026. Estimates only, not financial, tax or legal advice.