Finance & Money
Rental Property ROI Calculator - Analyze rental property ROI including cash flow and cap rate.
Analyze rental property ROI including cash flow and cap rate.
Formulas and edge cases are reviewed against authoritative references before publication. For methodology, editorial standards, or corrections, use the links below.
Frequently asked questions
What is cash-on-cash return?
The annual pre-tax cash flow divided by total cash invested - shows return on your actual money invested.
What is a good cap rate?
Typically 4-10% depending on location and property type. Higher cap rate = higher risk/return.
What vacancy rate should I use?
5-10% is typical for most markets. Check local rental statistics for accuracy.
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About this tool
Inputs
- Property Price
- Down Payment
- Mortgage Rate
- Mortgage Term
- Monthly Rent
- Property Tax
- Insurance
- Maintenance
- Vacancy Rate
Results
- Cash-on-Cash Return
- Cap Rate
- Monthly Cash Flow
- 5-Year ROI
- 10-Year ROI
Getting the right answer starts with the right formula. The Rental Property ROI Calculator handles the computation so you can focus on the decision. Projecting financial scenarios helps you set realistic goals and avoid costly surprises. The rule of 72 offers a quick estimate: divide 72 by the annual rate to approximate doubling time. You supply property price, down payment, mortgage rate, mortgage term, monthly rent, property tax, insurance, maintenance and vacancy rate, and the tool calculates cash-on-cash return, cap rate, monthly cash flow and other key metrics from those figures.
The ability to analyze rental property roi including cash flow and cap rate comes up more often than most people expect — in professional work, academic projects, and everyday planning. The annual pre-tax cash flow divided by total cash invested - shows return on your actual money invested. Remember that past returns do not guarantee future performance. Whether saving for retirement or evaluating a loan, running the numbers removes guesswork. Try adjusting one input at a time to see how it affects the outcome — this is the fastest way to build intuition about the relationship between the variables.