Rental Property Calculator

Analyze cash flow and returns for potential rental property investments.

Property & loan

Purchase price

Down payment

Interest rate (%)

Income

Monthly rent

Vacancy rate (%)

Expenses

Property tax rate (%)

Annual insurance

Maintenance (%)

Property management (%)

Monthly cash flow

$-470

$-5,634 per year

Cash-on-cash

-8.0%

Cap rate

4.8%

GRM

11.7

DSCR

0.75

Below 1.25 threshold

Break-even occupancy

113.8%

occupancy needed

Monthly breakdown

Gross rent$2,500

Vacancy loss-$125

Effective rent$2,375

Expenses

Mortgage$1,863

Taxes$350

Insurance$150

Maintenance$292

Management$190

Total expenses$2,845

10-year projection

253.105,665184.689,505116.273,34547.857,185-20.558,975

Cumulative cash flow

Equity

Understanding cash flow

Positive cash flow means rental income exceeds all expenses including mortgage. This is the foundation of rental property investing.

Key investment metrics

DSCR (Debt Service Coverage Ratio) should be above 1.25. Cap rate of 4-10% is typical. GRM (Gross Rent Multiplier) varies by market.

Investment tips

Budget conservatively for vacancy (8-10%) and maintenance (1-2% of value). Screen tenants carefully. Consider property management costs even if self-managing.