What is a good cap rate?

Cap rates typically range from 4–10%. Higher cap rates indicate more income relative to price but often come with more risk. A 5–7% cap rate is common in stable urban markets; higher rates appear in smaller or riskier markets.

What expenses should I include?

Include property taxes, insurance, property management (typically 8–12% of rent), maintenance (budget 1% of property value per year), vacancy allowance (5–10% of rent), and any HOA fees.

What is a good rental yield?

A gross rental yield of 6–8% is generally considered solid. Net yield (after expenses) is more meaningful — anything above 4–5% net is typically worthwhile depending on your market and financing.

How does leverage affect returns?

Financing a property amplifies both gains and losses. A leveraged property can produce strong cash-on-cash returns even with a modest cap rate, as long as the rent exceeds the mortgage payment and expenses.

Does this calculator include appreciation?

No. This calculator focuses on cash flow metrics. For a full return picture including appreciation, use the Rent vs Buy or IRR calculator.

Finance

↵ to calculate

Rental Property Calculator — ROI Cash Flow Analysis

Calculate monthly cash flow, gross rental yield, and cap rate for any rental property investment.

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How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🌱 When you save money in a bank, the bank gives you a small gift (called interest) for keeping it there. Then next year, you get a gift on your gift too! This tool shows how much your money will grow over time.

📌 Direct Answer & Summary

A rental property calculator helps real estate investors quickly evaluate the profitability of an investment property. It computes monthly cash flow, gross rental yield, and cap rate — three key metrics used to compare properties and decide whether an investment makes financial sense.

Property Price ($)

Monthly Rent ($)

Monthly Expenses ($)

Down Payment (%)

Mortgage Rate (%)

Loan Term (years)

What is Rental Property Calculator — ROI Cash Flow Analysis?

How to use it

1️⃣ Enter the property purchase price.
2️⃣ Enter the expected monthly rent.
3️⃣ Enter your monthly operating expenses (insurance, taxes, maintenance, vacancy).
4️⃣ Enter your mortgage rate, down payment percentage, and loan term.
5️⃣ Review monthly cash flow, rental yield, and cap rate instantly.

Formula

Monthly Cash Flow = Monthly Rent − Mortgage Payment − Monthly Expenses. Gross Rental Yield = (Annual Rent / Property Price) × 100. Cap Rate = (Annual Rent − Annual Expenses) / Property Price × 100.

💡 See it in action — a real example

A $300,000 property renting for $2,200/month with $600/month expenses, 20% down at 7% for 30 years: mortgage ≈ $1,596/month. Cash flow ≈ $4/month. Cap rate ≈ 6.4%.

❓ Common questions

What is a good cap rate?: Cap rates typically range from 4–10%. Higher cap rates indicate more income relative to price but often come with more risk. A 5–7% cap rate is common in stable urban markets; higher rates appear in smaller or riskier markets.
What expenses should I include?: Include property taxes, insurance, property management (typically 8–12% of rent), maintenance (budget 1% of property value per year), vacancy allowance (5–10% of rent), and any HOA fees.
What is a good rental yield?: A gross rental yield of 6–8% is generally considered solid. Net yield (after expenses) is more meaningful — anything above 4–5% net is typically worthwhile depending on your market and financing.
How does leverage affect returns?: Financing a property amplifies both gains and losses. A leveraged property can produce strong cash-on-cash returns even with a modest cap rate, as long as the rent exceeds the mortgage payment and expenses.
Does this calculator include appreciation?: No. This calculator focuses on cash flow metrics. For a full return picture including appreciation, use the Rent vs Buy or IRR calculator.

⚡ Related Finance Tools & Calculators

Rent vs Buy Calculator Mortgage Calculator IRR Calculator