What does this rental property ROI calculator include?
It estimates vacancy-adjusted rent, operating expenses, mortgage payment, cash flow, NOI, cap rate, cash-on-cash return, expense ratio, and break-even measures from the assumptions you enter.
US · USDTransparent pre-tax estimate
Rental Property ROI Calculator
Estimate cash flow, NOI, cap rate, cash-on-cash return, and break-even rent. Change any assumption and the analysis updates locally—no account or network request required.
What this baseline models
- Principal and interest financing
- Fixed monthly operating expenses
- Vacancy and rent sensitivity
- Pre-tax property returns
Public calculator · no account required
Model the property
Property assumptions
Rates are entered as percentages. Every recurring expense is a fixed monthly USD amount.
Monthly cash flow
$156.85
After vacancy, operating expenses, and debt service
Annual cash flow
$1,882
Pre-tax twelve-month estimate
Cap rate
6.32%
NOI divided by purchase price; excludes debt service
Cash-on-cash return
2.24%
Annual pre-tax cash flow divided by upfront cash
Operating detail
Income, expenses, financing, and break-even measures.
- Monthly gross rent
- $2,700.00
- Vacancy loss
- $135.00
- Vacancy-adjusted rent
- $2,565.00
- Operating expenses
- $986.00
- Mortgage payment / debt service
- $1,422.15
- NOI
- $18,948
- Total cash invested
- $84,000.00
- Expense ratio
- 36.52%
- Break-even occupancy
- 89.19%
- Break-even rent
- $2,534.90
Keep this analysis
Open the full browser report now or send the same link-based analysis to your inbox. No account is required.
Assumption checks
Deterministic checks based only on this scenario's inputs and outputs.
Positive cash flow is sensitive to rent changes
A 10% lower rent assumption would make estimated monthly cash flow zero or negative. Review the rent, expense, and reserve assumptions before relying on the current surplus.
Income tax effects are excluded
Returns are pre-tax estimates and do not model depreciation, income taxes, appreciation, or sale proceeds.
Rent sensitivity
Each row reruns the same formula engine while changing monthly rent by ±5% and ±10%.
Rent stress test details
| Rent change | Monthly rent | Monthly cash flow | Cash-on-cash |
|---|---|---|---|
| -10.00% | $2,430.00 | -$99.65 | -1.42% |
| -5.00% | $2,565.00 | $28.60 | 0.41% |
| Base | $2,700.00 | $156.85 | 2.24% |
| +5.00% | $2,835.00 | $285.10 | 4.07% |
| +10.00% | $2,970.00 | $413.35 | 5.91% |
Formula reference
Every output is explainable
The calculator keeps unrounded decimal intermediates where practical, then displays monthly money to cents and percentages to two decimal places. Formula version rental-roi@1.1.0 stays attached to the result.
Monthly gross rent
Estimated monthly rent
The scheduled rent before vacancy or operating expenses.
Vacancy-adjusted rent
Monthly gross rent − (monthly gross rent × vacancy rate)
The rent expected after applying the vacancy assumption to scheduled rent.
Monthly operating expenses
Taxes + insurance + HOA + repairs + management + owner utilities + CapEx + other expenses
Recurring property costs are combined as monthly amounts and exclude debt service.
Monthly mortgage payment
Principal × monthly rate × (1 + monthly rate)^months ÷ ((1 + monthly rate)^months − 1)
Principal-and-interest payment for a fully amortizing loan; zero-interest loans use principal divided by months.
Monthly cash flow
Vacancy-adjusted rent − operating expenses − mortgage payment
Estimated pre-tax cash remaining after operating costs and debt service.
Annual cash flow
Monthly cash flow × 12
A twelve-month estimate based on the monthly cash-flow result.
Net operating income (NOI)
(Vacancy-adjusted rent − operating expenses) × 12
Annual income after vacancy and operating expenses but before mortgage payments, income taxes, and depreciation.
Cap rate
NOI ÷ purchase price
A property-level yield based on purchase price. Cap rate excludes debt service.
Cash-on-cash return
Annual pre-tax cash flow ÷ total cash invested
The annual pre-tax cash-flow return on down payment plus closing costs.
Total cash invested
Down payment + closing costs
The upfront cash included by this baseline; rehab and other acquisition costs are not modeled here.
Expense ratio
Monthly operating expenses ÷ monthly gross rent
The portion of scheduled rent consumed by operating expenses before debt service.
Break-even occupancy
(Operating expenses + mortgage payment) ÷ monthly gross rent
The share of scheduled rent needed to cover modeled operating costs and debt service.
Break-even rent
(Operating expenses + mortgage payment) ÷ (1 − vacancy rate)
The scheduled monthly rent needed to cover modeled costs at the selected vacancy rate.
Example scenario
A financed $300,000 rental
The default example uses 25% down, a 6.5% thirty-year loan, $2,700 monthly rent, 5% vacancy, and explicit reserves for repairs and capital expenses. Use it as a walkthrough, not a market benchmark.
Open the example in the calculatorPurchase price
$300,000
Down payment
$75,000
Monthly rent
$2,700
Vacancy
5.00%
FAQ
Rental ROI questions
Does cap rate include the mortgage payment?
No. Cap rate is NOI divided by purchase price, and NOI excludes debt service. Financing is reflected in cash flow and cash-on-cash return instead.
How is cash-on-cash return calculated?
This baseline divides annual pre-tax cash flow by down payment plus closing costs. It does not include appreciation, income taxes, depreciation, refinance proceeds, or sale proceeds.
Why are repairs and CapEx separate?
Repairs cover routine upkeep, while a CapEx reserve sets aside money for less frequent major replacements. Keeping both visible makes the operating assumptions easier to review.
Related analysis
This analysis combines several rental metrics. Use the dedicated calculators when you want to isolate property yield, cash return, financing, or debt coverage.