Rental Property ROI Calculator
Calculate annual net rental cash flow, Cap Rate, Cash-on-Cash return, and total ROI for residential real estate investments.
What this calculator does
The Rental Property ROI Calculator estimates your result instantly from the values you enter, using standard real estate formulas. Calculate annual net rental cash flow, Cap Rate, Cash-on-Cash return, and total ROI for residential real estate investments. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
About Rental Property ROI Calculator
The Rental Property ROI Calculator evaluates the profitability of real estate investments, factoring in gross rent, vacancy allowances, operating expenses (taxes, insurance, HOA, maintenance), and mortgage debt service.
Formula & Mathematical Calculation
Net Operating Income (NOI) = Gross Rental Income - Vacancy - Operating Expenses
Annual Net Cash Flow = NOI - Annual Mortgage Payments (P&I)
Total ROI (%) = [ ( Net Cash Flow + Principal Paydown + Property Appreciation ) / Initial Cash Invested ] × 100
Calculation Example
$300,000 Rental Property ($60k Down + $6k Closing = $66k Cash Invested, $2,400/mo Rent): NOI = $19,200/yr. Mortgage = $14,400/yr → Net Cash Flow = $4,800/yr ($400/mo). Cash-on-Cash Return = 7.27% | Total ROI = 18.5% with appreciation.
Key Benefits
- Calculates monthly cash flow, Cap Rate, and Cash-on-Cash return
- Accounts for realistic vacancy reserves (5-8%) and repair allowances (5-10%)
- Includes mortgage principal paydown equity accumulation
- Models long-term property appreciation and tax depreciation deductions
- Essential for real estate investors and landlords
How to Use this Calculator
-
Enter Purchase Price & Financing Details
Input property price, down payment, interest rate, and term. -
Enter Gross Monthly Rental Income
Input expected monthly rent. -
Itemize Operating Expenses
Input property taxes, insurance, maintenance, property management, and vacancy rate. -
Calculate Property ROI
Click Calculate to view comprehensive cash flow and return metrics.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Rental Property ROI Calculator produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
You May Also Need
Next step: browse the full Real Estate calculators or read the related guides for context before you decide.