Rental property ROI calculator

Run the numbers on a rental property the way investors do: net operating income, cap rate, monthly cash flow after the mortgage, and cash-on-cash return on the money you actually put in.

Purchase price

Down payment

Investment loans usually require 20–25% down

Interest rate

Expected monthly rent

$/mo

Operating expenses

% of rent

Taxes, insurance, maintenance, vacancy, management — 35–50% is the common range. Switch to Detailed underwriting to itemize.

Closing costs

Cap rate

5.8%

Net operating income ÷ purchase price — the deal's yield before any financing.

Gross rent (annual)$31,200

Operating expenses−$10,920

Net operating income (NOI)$20,280

Mortgage payment−$1,746/mo

Monthly cash flow−$56/mo

Cash invested (down + closing)$98,000

Cash-on-cash return-0.7%

Negative cash flow means you'd feed this property every month. That can still work as an appreciation bet — but it's a bet, not income.

Assumes a 30-year investment loan. Cap rates only compare fairly within the same market and property type — Theo, our commercial expert, covers the nuances.

Keep learning

Guide: Buying your first rental property Blog: Cap rates explained Glossary: Cap rate

Want to go deeper?

Ask Theo, our commercial real estate expert, about your numbers — it's free.

Chat with Theo