Rental Property Calculator

Estimating Rental Property Cash Flow

Our Rental Property Calculator helps you estimate monthly and annual cash flow and long-term returns for an investment property. Enter your purchase price, loan terms, rent, and expenses to see whether a property is likely to generate a positive or negative cash flow and meet your target returns.

Property Details: Key Inputs

• Purchase Price: The acquisition price of the property.
• Down Payment (%): The portion of the price paid at closing (aka equity); the remainder is financed or debt.
• Interest Rate & Loan Term: Used to calculate your monthly mortgage (principal & interest).
• Closing Costs: One-time costs to close on the property (title, attorney, lender fees, etc.). 
• Monthly Rent: Current or expected gross rent for the property.
• Other Income: Parking, storage, pet fees, or laundry income.
• Vacancy Rate (%): Expected time the unit sits vacant between tenants.
• Annual Rent Increase (%): Estimated year-over-year growth in rent.

Operating Expenses: Key Inputs

• Property Tax: Monthly real estate taxes for the property.
• Insurance: Annual Landlord insurance premiums.
• Common Charges/Monthly Maintenance: Monthly fees assessed by Condominium/HOA, if applicable.
• Maintenance & Repairs: Ongoing upkeep.
• Property Management Fee (%): Fee charged by a property manager.
• Utilities: Owner-paid utilities (if any).
• Expense Growth Rate (%): Estimated year-over-year increase in operating costs.
• Broker Commission & Turnover Costs: Leasing fees and refresh costs incurred when a new tenant moves in.

How the Calculator Works

Income & Vacancy

• Vacancy Rate: Reflects expected downtime between tenants. If the unit is currently occupied, you may see little to no vacancy loss in Year 1. Over a longer holding period, we assume occasional gaps between the current tenant’s lease end and the new tenant’s lease start.
• Turnovers: During vacancy, owners often complete turnover work (paint, repairs, deep clean), market the unit, and—where applicable—wait for board approval. Brokerage/leasing fees and turnover costs are applied when turnover occurs.
• Rent Growth (YOY): Annual rent increase applies to gross scheduled rent to project future income.

Expenses & Growth

• Operating Costs: Taxes, insurance, HOA, maintenance, management, and utilities reduce cash flow.
• Expense Growth (YOY): Costs typically rise over time and may increase at a different rate than rent. Enter a realistic annual % to model inflation and building operations.

Financing

• Mortgage Payment: Calculated from loan amount, interest rate, and term. This is added to operating expenses to arrive at cash flow after debt service.

Results: Key Metrics Defined

• Monthly/Annual Cash Flow: Income minus operating expenses and mortgage payment.
• Cap Rate: NOI divided by purchase price; a quick yield snapshot before debt.
• Cash-on-Cash Return: Annual pre-tax cash flow divided by total cash invested (down payment + closing costs + initial reserves).
• Appreciation Impact: Optional annual property value growth to illustrate long-term equity gains.