Rental property calculator
Rent minus mortgage is not cash flow. Fill in the four expenses most people leave out and see what the property actually returns.
Purchase and financing
Gross rent before any expenses.
Operating expenses
Pre-filled at realistic rates. These are the four costs most first-time landlords leave out.
Leave at zero if none.
Used only for the ten-year equity projection.
Share of the year the unit sits empty.
Higher on older properties.
Set to zero only if you truly value your own time at nothing.
Monthly cash flow
$216.04
after every expense and debt service
Rent minus mortgage, taxes, and insurance alone would suggest $883.04. Vacancy, maintenance, and management account for the $667.00 difference.
Gross rent
$2,900.00
Operating expenses
−$1,167.00
Mortgage payment
−$1,516.96
Net cash flow
$216.04
Deal quality
- Cap rate6.50%Pass
- Cash-on-cash2.89%Fail
- DSCR1.14xFail
- 1% rule0.91%Fail
Thresholds are conventional starting points, not rules. A lower cap rate can be right in a market where appreciation does more of the work.
Cash required and long-run equity
Down payment
$80,000.00
Closing costs
$9,600.00
Total cash invested
$89,600.00
Net operating income
Before debt service
$20,796.00 / yr
Break-even rent
Below this the property loses money each month
$2,683.96
Equity after 10 years
Appreciation plus principal paid down
$226,590.54