Rental Property Calculator
Before you buy an investment property, run the numbers. See your monthly cash flow, cap rate, and cash-on-cash return based on real income and expense inputs.
What you'll need
- Purchase price and down payment
- Expected mortgage rate
- Monthly rent (check comparable rentals)
- Property tax and insurance estimates
- Vacancy rate estimate
What you'll get
Monthly cash flow
Positive or negative?
Cap rate
NOI / purchase price
Cash-on-cash return
Annual return on invested capital
Gross rent multiplier
Quick valuation metric
How it works
Enter purchase and financing
Input purchase price, down payment, rate, and term for the rental property.
Add rental income and expenses
Include rent, vacancy rate, property management, taxes, insurance, and maintenance.
Get investor metrics
Receive cap rate, cash-on-cash return, GRM, and 10-year equity projection.
Rental Property Metrics by Price Point
| Purchase Price | Rent Needed (1% Rule) | Break-Even Rent |
|---|---|---|
| $150,000 | $1,500/mo | $1,100/mo |
| $250,000 | $2,500/mo | $1,700/mo |
| $350,000 | $3,500/mo | $2,400/mo |
| $500,000 | $5,000/mo | $3,400/mo |
The 1% rule: monthly rent ≥ 1% of purchase price. A guideline, not a guarantee.
Frequently asked questions
What is a good cap rate for a rental property?
Cap rate (NOI / purchase price) typically ranges 4–10% for residential rentals. In expensive markets (NYC, SF), 3–5% is common. In Midwest and Southern markets, 6–10% is achievable. A higher cap rate means more income relative to price — but may also signal higher risk or a less desirable area.
What is cash-on-cash return?
Cash-on-cash return is your annual cash flow divided by your initial cash invested (typically your down payment + closing costs). A 8–12% cash-on-cash return is generally considered strong for residential rental properties. It's a better metric than cap rate for leveraged purchases.
What expenses should I include for a rental property?
Key rental property expenses include: mortgage P&I, property taxes, landlord insurance, property management (8–12% of rent), vacancy allowance (5–10%), maintenance and repairs (1% of value/year), and HOA fees if applicable. Don't forget CapEx reserves for roof, HVAC, and appliance replacement.
What is the 1% rule for rental properties?
The 1% rule says monthly rent should equal at least 1% of the purchase price. A $200,000 property should rent for $2,000/month. It's a quick screening heuristic — properties meeting it are more likely to cash flow positively. In high-cost markets (coastal cities), finding properties that meet the 1% rule is rare; in Midwest and Southern markets it's more achievable.
How do I calculate net operating income (NOI) for a rental?
NOI = Gross rental income − all operating expenses (taxes, insurance, management, maintenance, vacancy). Do NOT subtract mortgage payments from NOI — debt service is handled separately. NOI is used to calculate cap rate (NOI / purchase price) and is the standard metric for comparing properties regardless of financing structure.
Ready to analyze your investment property?
Run the Numbers →State guides
How this varies by state
Property taxes, insurance costs, first-time buyer programs, and closing costs differ significantly across states. See local data for your state.
California
Texas
Florida
New York
Illinois
Pennsylvania
Ohio
Georgia
North Carolina
Michigan
New Jersey
Virginia
Washington
Arizona
Colorado
Tennessee