Rental Property Calculator
Cash flow, cap rate, cash-on-cash return and DSCR for a buy-to-let.
About this tool
Enter the purchase price, deposit, mortgage rate and term, closing costs and repairs, the monthly rent and other income, the vacancy rate and the running costs: property tax, insurance, service charges, maintenance, management and anything else. The calculator shows monthly and yearly cash flow, cash-on-cash return, cap rate, net operating income, debt service coverage ratio, mortgage payment, gross yield and the 1% rule, with the working in one line.
The key numbers for a rental property
Net operating income (NOI) is the rent you actually collect after vacancies, minus running costs, but before the mortgage. The cap rate, NOI divided by the price, compares properties regardless of how they are financed. Cash flow is NOI minus the mortgage payments, and cash-on-cash return is that yearly cash flow divided by all the cash you put in: deposit, closing costs and repairs. Lenders look at the debt service coverage ratio, NOI divided by mortgage payments, and often want 1.2 or more. The 1% rule, monthly rent of at least 1% of the price, is a quick screen popular in the US. In the example, a 250,000 property renting for 2,100 has a cap rate of about 5.8%, but with a 6.5% mortgage it only clears about 32 a month in cash flow, a cash-on-cash return of about 0.5%. That is typical when rates are high. Honest limits: the calculator leaves out income tax, capital growth and the equity you build as the mortgage is paid down, and real costs vary, so budget generously for repairs and empty periods. Not financial advice. The mortgage calculator, the rent vs buy calculator and the ROI calculator help with related decisions. How mortgage amortization works, and why overpaying early matters explains the loan side.
Frequently asked questions
What is a good cap rate?
It varies by market and risk. Many investors look for 5โ10%; lower cap rates are common in expensive, stable areas.
What is cash-on-cash return?
Annual pre-tax cash flow divided by the total cash you invested, including deposit, closing costs and repairs.
What is the 1% rule in real estate?
A quick screen that says monthly rent should be at least 1% of the purchase price. It is a rough filter, not a full analysis.
Is my data saved?
No. The calculation runs in your browser and nothing is stored or sent.