Assumption: rents and operating expenses stay flat in this version, while property value grows at the appreciation rate until sale. Mortgage amortization is modeled monthly and returns are summarized at the monthly and yearly level.
| Period | Gross Income | Expenses + Debt | Net Cash Flow | Loan Balance |
|---|---|---|---|---|
| Enter rental property details above to see the schedule | ||||
How This Rental Property Calculator Works
This calculator combines property purchase assumptions, loan financing, rental income, operating expenses, and a future sale estimate to give you a clear view of the investment. It focuses on the core investor questions: cash flow, cap rate, cash-on-cash return, equity growth, and total profit.
Core Formulas
NOI = Annual Rent - Vacancy/Management - Operating Expenses
Cap Rate = NOI / Purchase Price
Cash-on-Cash Return = Annual Cash Flow / Initial Cash Invested
What the Results Mean
- Monthly Cash Flow: income left after vacancy, expenses, and mortgage payment.
- NOI: annual property income before principal and interest payments.
- Cap Rate: a quick yield metric for comparing deals.
- Cash-on-Cash: return on the cash you actually invested up front.
- Total Profit: combined gain from annual cash flow and estimated sale proceeds.
Frequently Asked Questions
Rental Property Metrics at a Glance
Different real-estate metrics answer different questions. Cap rate is good for quick comparisons, cash-on-cash return helps evaluate leverage, and total profit gives a broader hold-and-exit view.
| Feature | What It Tells You | Best Use |
|---|---|---|
| Cap Rate | Unlevered income yield on the property | Compare deals quickly |
| Cash Flow | Money left each month after all modeled costs | Check sustainability |
| Cash-on-Cash Return | Return on actual cash invested | Evaluate leveraged deals |
| Equity | Value minus loan balance over time | Track wealth buildup |
| Total Profit | Combined hold income and exit gain | Longer-term planning |