How it works
Analyze the profitability of a rental property including Net Operating Income (NOI) and Cash Flow.
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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?purchasePrice=Purchase PriceNumber · Optional · Default: 250,000
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?rent=Monthly RentNumber · Optional · Default: 2,200
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?vacancyRate=Vacancy RateNumber · Optional · Default: 5
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?expenses=Monthly ExpensesNumber · Optional · Default: 800
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?mortgage=Monthly MortgageNumber · Optional · Default: 1,100
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?downPayment=Down paymentMoney · Optional · Default: 50,000
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?closingCosts=Closing and initial costsMoney · Optional · Default: 7,500
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.
Evaluate the yield of a real estate investment
Description
The Rental Property Calculator provides a snapshot of an investment property’s annual performance. By accounting for vacancy losses, operating expenses, and debt service (mortgage), it reveals the property’s Net Operating Income (NOI) and actual bottom-line Cash Flow, allowing for an objective comparison of different real estate opportunities.
Inputs
- Purchase Price: The total acquisition cost of the property ($).
- Monthly Rent: The expected gross rental income from all units ($).
- Vacancy Rate: The percentage of time you expect the property to be unoccupied (standard is 5-10%) (%).
- Monthly Expenses: All non-mortgage operating costs (Taxes, Insurance, Repairs, Management) ($).
- Monthly Mortgage: The principal and interest payment for the loan ($).
Outputs
- Annual Cash Flow: The actual cash remaining after all expenses and the mortgage are paid ($).
- Net Operating Income (NOI): The property’s income before debt service. This represents the property’s intrinsic earning power ($).
- Cap Rate: The annual yield of the property if it were purchased entirely with cash (%).
- Estimated Cash-on-Cash Return: A projection of your yield based on a typical 23% down payment and closing cost scenario (%).
Chart
- N/A: This tool provides a professional numeric summary and performance evaluation.
“Good to Know”
- The Cap Rate is used to compare properties regardless of how they are financed.
- NOI is a critical metric for commercial real estate and multi-family lenders.
- A property might have a strong NOI but “Negative Cash Flow” if the mortgage payment is too high relative to the income—a common issue in high-interest environments.
Examples
Example 1: Solid Performer
- Input:
- Price: $250,000
- Rent: $2,200, Vacancy: 5%
- Expenses: $800, Mortgage: $1,100
- Output:
- NOI: ~$15,100
- Annual Cash Flow: ~$1,900
- Cap Rate: 6.05%
Example 2: High Vacancy Area
- Input:
- Vacancy Rate: 15%
- Output:
- Shows how an increased vacancy “plug” can turn a profitable-looking deal into a net loss.
Example 3: Cash Purchase (Strategic)
- Input:
- Mortgage: $0
- Output:
- Annual Cash Flow will equal the NOI, showing the maximum yield possible without leverage.