Rental Property Calculator
Analyze rental property cash flow, ROI, cap rate and return on investment.
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Frequently Asked Questions
What is a good cap rate for rental property?
A cap rate of 5-10% is generally considered good for residential rental property. Urban/coastal markets (NYC, SF, LA) often have cap rates of 3-5% due to appreciation potential. Midwest and Sun Belt markets may offer 7-10%+ cap rates. Cap rate = NOI / Purchase Price. Higher cap rates mean more income relative to price but may reflect higher risk.
What is cash-on-cash return?
Cash-on-cash return measures annual cash flow as a percentage of your actual cash invested (down payment plus closing costs). It is the most practical measure of rental property performance for leveraged investors. A cash-on-cash return of 6-12% is considered solid. Unlike cap rate, it accounts for your financing structure.
What expenses should I budget for a rental property?
Budget for: property taxes (1-2% of value/year), insurance ($100-200/month), maintenance (1% of value/year), property management (8-12% of rent if using a manager), vacancy (5-10%), CapEx reserves for big repairs like roof, HVAC, appliances (5-10% of rent). New landlords frequently underestimate expenses by 30-50%.