Cash flow, cap rate, cash-on-cash, NOI and DSCR for any rental, in one place.
Run the numbers on any rental before you make an offer. Enter the price, your loan, the rent and the real operating costs, and this free rental property calculator shows your monthly cash flow, cash-on-cash return, cap rate, NOI and DSCR as you type.
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How to use the rental property calculator
- Purchase and loan. Enter the price, your down payment as a percentage, the interest rate and term, plus closing costs and any repairs you will pay for before the first tenant moves in.
- Income. Use the rent the property will actually get, based on comparable rentals nearby, not the seller's hopeful number. Add other income such as laundry or parking.
- Operating costs. Taxes and insurance are yearly. Vacancy, repairs, capital expenses and management are percentages of rent, which keeps them realistic as rent changes. Put 0% management only if you will truly manage it yourself.
Every result updates as you type. Use Copy link to these numbers to save a deal or send it to a partner.
What each result means
- Monthly cash flow = rent collected − operating expenses − mortgage payment. This is what you keep each month before income taxes.
- Net operating income (NOI) = yearly rent collected − yearly operating expenses. It ignores the mortgage, so it describes the property, not your financing.
- Cap rate = NOI ÷ purchase price. Use it to compare properties regardless of how they are financed. See the cap rate calculator.
- Cash-on-cash return = yearly cash flow ÷ the cash you put in (down payment, closing costs and repairs). This is the return on your money. See the cash-on-cash calculator.
- DSCR = NOI ÷ yearly mortgage payments. Lenders use it to judge whether the rent covers the loan; many want 1.20 to 1.25 or more. See the DSCR calculator.
- Gross rent multiplier and the 1% rule are quick screens: price ÷ yearly rent, and monthly rent ÷ price. Useful for sorting many listings fast, not for a final decision.
Worked example
The calculator opens with this example: a $250,000 rental bought with 25% down ($62,500) at 7% for 30 years, $7,500 closing costs, renting for $2,200 a month.
- Mortgage payment (principal and interest): $1,247 a month on the $187,500 loan.
- Operating expenses: $762 a month: taxes $250, insurance $125, repairs and CapEx $220 (10% of rent) and management $167 (8% of the $2,090 collected after 5% vacancy).
- NOI: $15,934 a year, so the cap rate is 6.37%.
- Cash flow: $2,090 − $762 − $1,247 = $80 a month, or $964 a year on $70,000 invested: a 1.38% cash-on-cash return.
That is a thin deal. The property itself is reasonable (a 6.37% cap rate), but at a 7% interest rate the mortgage takes almost all of the income. Try a lower price, more rent or a bigger down payment and watch the cash flow change.
What is a good rental property?
There is no single number, because it depends on your market, your financing and whether you are buying for cash flow or appreciation. Common guidelines investors use:
- Positive cash flow after setting aside money for vacancy, repairs, CapEx and management, not just after the mortgage.
- A cash-on-cash return of roughly 8–12% for a cash-flow rental, lower if you are counting on appreciation.
- A DSCR of at least 1.20–1.25 if you plan to use a DSCR loan.
For the full method, read our guide to calculating rental property cash flow and the rental property analysis worksheet.
Frequently asked questions
How much should I budget for repairs and CapEx?
Many investors set aside 5–10% of rent for repairs and another 5–10% for capital expenses such as roofs, HVAC and appliances. Older houses and properties with deferred maintenance need the higher end.
Should I include property management if I manage it myself?
It is safer to include it. Your time has a cost, and if you ever hire a manager, a deal that only works without one stops working. Typical fees run about 8–10% of rent collected.
Why is my cap rate good but my cash flow low?
The cap rate ignores financing. When interest rates are high, the mortgage payment can absorb most of the NOI, so a property with a solid cap rate can still have little cash flow. Compare the cap rate with your interest rate.
Does this include income taxes or depreciation?
No. Results are before income taxes. Depreciation and other tax benefits can improve your real return; ask a CPA about your situation.