Rental Property ROI Calculator
Work out the cash flow, cap rate and cash-on-cash return of a rental property after the mortgage, vacancy, tax, insurance and upkeep.
How rental returns are measured
Net operating income (NOI) is rent collected minus running costs (tax, insurance, upkeep, management), before the mortgage. The cap rate is NOI divided by the price, so it compares properties as if each were bought with cash. Cash flow is NOI minus the mortgage payments. Cash-on-cash return is yearly cash flow divided by the money you actually put in, the down payment.
This tool leaves out price growth, mortgage principal paydown and tax effects, so the real total return is usually higher than the cash-on-cash number if the property rises in value.
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Be honest about vacancy and repairs. Many beginners set both too low.
- The one percent rule says monthly rent should be about 1% of the price; it is a quick filter only.
- Always stress test the result with a higher rate and one empty month.
Learn more
Frequently asked questions
What is a good cap rate?
It depends on the area and risk. Many investors look for roughly 5% to 8% but compare properties in the same market.
Does this include closing costs?
No. Add them to your cash invested for a more careful figure.
Is mortgage principal part of the profit?
The principal you repay builds equity but is not cash in your pocket, so it is not counted here.
Does it include income tax?
No. Rental income and depreciation rules vary, so check with a tax professional.
Money guides for this topic
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Open calculator →Results are estimates and not financial advice.