Analyze cash flow, break-even rent, cap rate, and long-term returns before you invest
How monthly cash flow changes with rent ±$500
This calculator evaluates a rental property the way investors do: it computes the break-even rent, cap rate, cash-on-cash return, and projects total wealth built over a decade from cash flow, loan paydown, and appreciation combined.
Good rental analysis is mostly about honest expenses. Mortgage, taxes, and insurance are obvious; vacancy, maintenance, capital expenditures (roofs, HVAC), and property management are the line items that turn paper profits into real losses when ignored.
Cap rate = NOI ÷ Price · Cash-on-cash = Annual cash flow ÷ Cash investedIt varies by market and risk: 4–6% is typical for desirable low-risk areas, 8%+ usually signals higher risk or management burden. Compare cap rates within the same market and property class — a "good" number in one city is unremarkable in another.
A screening heuristic: monthly rent of at least 1% of the purchase price suggests the property might cash flow. In many markets today it's hard to hit — treat it as a first filter, then run full numbers like this calculator does rather than relying on the shortcut.
Vacancy between tenants, turnover costs (paint, cleaning, listing), capital expenditures like roofs and water heaters, rising insurance premiums, and property management. A property that only works at 100% occupancy with zero repairs doesn't work.
Three ways at once: monthly cash flow, principal paydown (tenants retire your mortgage), and appreciation. Tax treatment — depreciation deductions and deferral tools — can add more. The 10-year projection in this calculator adds those streams together.
Most rental listings look profitable until you count every expense. The four metrics investors actually use, with honest numbers on a real-world example.