How it works
Analyze a rental property investment. Calculate Cash Flow, Cap Rate, and Cash-on-Cash Return.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
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?price=Purchase PriceNumber · Optional · Default: 300,000
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?downPayment=Down PaymentNumber · Optional · Default: 60,000
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?closingCosts=Closing Costs / RehabNumber · Optional · Default: 9,000
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?rate=Loan Interest RateNumber · Optional · Default: 6.5
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?rent=Monthly Rent IncomeNumber · Optional · Default: 2,500
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?expenses=Monthly ExpensesNumber · Optional · Default: 1,000
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?term=Loan term (years)Number · Optional · Default: 30
Outputs
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resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Analyze rental property investment potential
Description
The Real Estate Calculator is a comprehensive tool for rental property investors. By inputting the purchase details, financing terms, and expected income/expenses, you can generate the most important “return on investment” metrics needed to decide if a property is a smart buy.
Inputs
- Purchase Price: The total cost of the property ($).
- Down Payment: The cash you are putting down at purchase ($).
- Closing Costs / Rehab: All other initial cash outlays, including legal fees and repairs ($).
- Loan Interest Rate: The annual interest rate on the mortgage (%).
- Monthly Rent Income: The expected gross monthly rent from all units ($).
- Monthly Expenses: The total of all non-mortgage monthly costs, including taxes, insurance, HOA fees, maintenance reserves, and vacancy allowance ($).
Outputs
- Monthly Cash Flow: The actual profit remaining each month after all expenses and the mortgage are paid ($).
- Cash-on-Cash Return: The annual cash flow divided by the total initial cash investment (%).
- Cap Rate: The “Capitalization Rate,” representing the property’s yield as if it were purchased in cash (%).
- Monthly Mortgage Payment: The principal and interest portion of your loan payment.
Chart
- N/A: This tool provides a deep numeric analysis of investment yield.
“Good to Know”
- A “Good” Cap Rate typically ranges from 5% to 10%, depending on the market and property type.
- Cash-on-Cash return is often higher than the Cap Rate if you use “leverage” (a mortgage) successfully.
- Don’t forget to budget for Vacancy (usually 5-10% of rent) and Maintenance in your monthly expenses to avoid unpleasant surprises.
Examples
Example 1: Standard Single Family Rental
- Input:
- Price: $300k, Down: $60k, Rehab: $9k
- Rate: 6.5%
- Rent: $2,500, Expenses: $1,000
- Output:
- Cash Flow: ~$0 (Break even after mortgage)
- Cap Rate: 6.0%
Example 2: High Yield “Fixer”
- Input:
- Price: $150k, Down: $30k, Rehab: $20k
- Rent: $1,800, Expenses: $600
- Output:
- Demonstrates how lower purchase prices relative to rent can lead to high Cash-on-Cash returns.
Example 3: Negative Cash Flow Warning
- Input:
- High Price, Low Rent, or High Interest Rate.
- Output:
- Alerts you if the property will cost you money out-of-pocket every month.