Rental Property ROI Calculator
Analyze a rental property investment. Calculate monthly cash flow, cap rate, cash-on-cash return, and total ROI.
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Monthly Cash Flow
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Cap Rate
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Cash-on-Cash Return
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Mortgage Payment
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Annual Cash Flow
Rental Property Investment Metrics
Cap Rate (Capitalization Rate) = Net Operating Income / Purchase Price. A 5-8% cap rate is typical for residential rental properties. Higher is better. Cash-on-Cash Return = Annual Cash Flow / Cash Invested. This measures your return on actual cash invested (down payment + closing costs), not the property value. The 1% Rule: A property should rent for at least 1% of its purchase price monthly. A $350,000 property should rent for $3,500/month. Use our Mortgage Calculator for detailed payment breakdowns.
Frequently Asked Questions
What is a good cap rate?
For residential rentals, 5-8% is typical. Under 4% is low. Above 8% may indicate higher risk or undervalued property. Cap rates vary significantly by location.
How much should I budget for expenses?
Budget 40-50% of rent for all expenses: property tax, insurance, maintenance (1% of value/year), vacancy (5-8%), property management (8-10% if used), and capital expenditures.