# Rental Property Calculator

URL: https://speedycalculator.com/calculators/finance/rental-property/
Last updated: 2026-10-25

> The rental property calculator analyses a buy-to-let investment: the mortgage payment, monthly cash flow, NOI, cap rate, cash-on-cash return and – with appreciation over your holding period – the total profit and annualized return.

## Inputs

- Purchase price
- Down payment (%)
- Closing and repair costs
- Interest rate (%)
- Loan term (years)
- Monthly rent
- Vacancy rate (%)
- Management fee (%)
- Property tax (yearly)
- Insurance (yearly)
- Maintenance and repairs (yearly)
- HOA fee (monthly)
- Value appreciation (yearly) (%)
- Holding period (years)
- Selling costs (%)

## Results

- Loan amount
- Monthly loan payment
- Effective gross income (yearly)
- Net operating income (yearly)
- Monthly cash flow
- Cap rate
- Cash invested
- Cash on cash return
- Selling price after the holding period
- Equity at sale after costs and loan payoff
- Total profit
- Annualized return (approx.)

## Formula

```
NOI = rent × (1 − vacancy) × (1 − management) − tax − insurance − maintenance − HOA − other
Cash flow = NOI − mortgage payments
Cap rate = NOI ÷ price; cash on cash = cash flow ÷ cash invested
Total return = cash flows + equity at sale − cash invested
```

## Explanation

Rental returns come from four sources: cash flow, loan paydown, appreciation and tax benefits. A property that loses money each month can still be a good investment if it appreciates – but it's riskier.

### How to use the Rental Property Calculator

- **Purchase price**
- **Down payment**
- **Closing and repair costs**
- **Interest rate**
- **Loan term**
- **Monthly rent**
- **Vacancy rate**
- **Management fee**
- **Property tax (yearly)**
- **Insurance (yearly)**
- **Maintenance and repairs (yearly)**
- **HOA fee (monthly)**
- **Value appreciation (yearly)**
- **Holding period**
- **Selling costs**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the purchase and loan details, the rent and vacancy, operating costs, appreciation and holding period.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterPurchase priceAmount in your currencyDown paymentIn %Closing and repair costsAmount in your currencyInterest rateIn %Loan termIn yearsMonthly rentAmount in your currencyVacancy rateIn %Management feeIn %Property tax (yearly)Amount in your currencyInsurance (yearly)Amount in your currencyMaintenance and repairs (yearly)Amount in your currencyHOA fee (monthly)Amount in your currencyValue appreciation (yearly)In %Holding periodIn yearsSelling costsIn %

### What each result means

- **Loan amount** = [Purchase price]×(1 - [Down payment]÷100)
- **Monthly loan payment** = pmt([Interest rate]÷1200, [Loan term]×12, [Loan amount])
- **Effective gross income (yearly)** = [Monthly rent]×12×(1 - [Vacancy rate]÷100)
- **Net operating income (yearly)** = [Effective gross income (yearly)]×(1 - [Management fee]÷100) - [Property tax (yearly)] - [Insurance (yearly)] - [Maintenance and repairs (yearly)] - [HOA fee (monthly)]×12
- **Monthly cash flow** = [Net operating income (yearly)]÷12 - [Monthly loan payment]
- **Cap rate** = [Net operating income (yearly)]÷[Purchase price]×100
- **Cash invested** = [Purchase price]×[Down payment]÷100 + [Closing and repair costs]
- **Cash on cash return** = [Monthly cash flow]×12÷[Cash invested]×100
- **Selling price after the holding period** = [Purchase price]×(1 + [Value appreciation (yearly)]÷100)^[Holding period]
- **Equity at sale after costs and loan payoff** = [Selling price after the holding period]×(1 - [Selling costs]÷100) - max(bal([Loan amount], [Interest rate]÷1200, [Loan term]×12, [Holding period]×12), 0)
- **Total profit** = [Monthly cash flow]×12×[Holding period] + [Equity at sale after costs and loan payoff] - [Cash invested]
- **Annualized return (approx.)** = ((([Equity at sale after costs and loan payoff] + [Monthly cash flow]×12×[Holding period])÷[Cash invested])^(1÷[Holding period]) - 1)×100

### Example values

How the main result changes when **Purchase price** changes and everything else stays at the example values above:

Purchase priceMonthly cash flow150,000674.13225,000299.9300,000-74.33375,000-448.56450,000-822.8600,000-1,571.26

## Worked example

Inputs — Purchase price: $300,000; Down payment: 25 %; Closing and repair costs: $9,000; Interest rate: 7 %; Loan term: 30 years; Monthly rent: $2,400; Vacancy rate: 5 %; Management fee: 8 %; Property tax (yearly): $3,600; Insurance (yearly): $1,500; Maintenance and repairs (yearly): $3,000; HOA fee (monthly): $0; Value appreciation (yearly): 3 %; Holding period: 10 years; Selling costs: 6 %.

Results — Loan amount = $225,000.00; Monthly loan payment = $1,496.93; Effective gross income (yearly) = $27,360.00; Net operating income (yearly) = $17,071.20; **Monthly cash flow = $-74.33**; Cap rate = 5.69 %; Cash invested = $84,000.00; Cash on cash return = -1.06 %; Selling price after the holding period = $403,174.91; Equity at sale after costs and loan payoff = $185,906.56; Total profit = $92,986.88; Annualized return (approx.) = 7.74 %.

## FAQ

**What is a good return on a rental property?**
Many investors aim for 8–12% cash on cash and positive cash flow.

**What expenses should I include?**
Vacancy, management, taxes, insurance, maintenance, HOA and capital repairs.

**What is the 1% rule?**
A quick screen: monthly rent should be at least 1% of the purchase price.

**What formula does the Rental Property Calculator use?**
NOI = rent × (1 − vacancy) × (1 − management) − tax − insurance − maintenance − HOA − other.