Free estimate — verify against local code before building
Rental Property ROI Calculator
Enter one property's price, financing, rent, and recurring costs to see a pre-tax planning model with editable reserves and a line-by-line audit trail.
What this calculator includes
This planning calculator separates scheduled rent, vacancy, operating expenses, capital reserve, and principal-and-interest debt service. It shows NOI, cap rate, reserve-adjusted cash flow, cash-on-cash return, DSCR, and the rent-to-price ratio without labeling any result universally good or bad. Mortgage P&I here excludes property tax, insurance, mortgage insurance, and other loan charges. Results are pre-tax estimates and omit appreciation, depreciation, income taxes, sale costs, and financing terms not entered; they are not tax or investment advice.
How to use this rental roi calculator
- 01
Enter acquisition and financing
Enter price, down payment, rate, term, closing costs, and make-ready budget from the actual deal documents or current quotes.
- 02
Enter income and vacancy
Use supportable monthly rent and your own vacancy allowance. Compare leases and local rental evidence rather than relying on a universal percentage.
- 03
Enter recurring costs
Include tax, insurance, maintenance, management, HOA, owner-paid utilities, other recurring expenses, and a separate capital-replacement reserve where appropriate.
- 04
Review the audit trail
Check NOI before financing, then reserve-adjusted cash flow, cash invested, cash-on-cash return, DSCR, and the rent-to-price ratio. Stress-test uncertain inputs before making a decision.
Calculation sources and review
Primary references and formula assumptions are linked so you can verify them against the selected product, supplier, and adopted local requirements.
Internal formula review completed July 13, 2026. What this review covers
- IRS Publication 527 (2025) — Residential Rental Property (opens in a new tab)
Federal rental-income, expense, recordkeeping, and depreciation context; this calculator does not calculate tax deductions.
- Consumer Financial Protection Bureau — principal and interest vs. total mortgage payment (opens in a new tab)
Explains that total payment can also include taxes, homeowners insurance, and mortgage insurance.
Frequently asked questions
What is a good cap rate for a rental property?
There is no universal good cap rate. Cap rate is NOI divided by purchase price and excludes financing. Compare the result with genuinely comparable properties while considering condition, location, lease quality, expected capital work, and risk.
What is the 1% rule in real estate?
The so-called 1% rule compares monthly rent with purchase price. This calculator reports the ratio as a quick screen only; it does not account for vacancy, expenses, financing, repairs, or local market conditions and does not predict cash flow.
What is cash-on-cash return?
Here it is annual pre-tax cash flow after the entered capital reserve and P&I divided by down payment, closing costs, and rehab. It excludes appreciation, depreciation, income taxes, sale proceeds, and unentered financing costs.
What does DSCR show?
Debt service coverage ratio is NOI divided by annual P&I debt service in this calculator. A lender may define NOI, reserves, qualifying rent, and debt service differently, so use the lender's underwriting rules for a financing decision.
Which rental expenses belong in the estimate?
Enter property-specific recurring costs such as tax, insurance, repairs and maintenance, management, HOA, owner-paid utilities, and other operating expenses. Capital reserve is shown separately from NOI. IRS Publication 527 discusses federal reporting, but a qualified tax professional should determine tax treatment for your facts.