Rental Property Calculator: Free Cash Flow & ROI Calculator
Oct 21, 2026
Written by
Alex Martinez, Founder & CEO, Real Estate Skills. Has wholesaled and flipped houses for over 14 years, been part of 1,000+ real estate transactions, and personally acquired 55+ residential investment properties. Has trained 6,000+ investors nationwide.
Reviewed by
Ryan Zomorodi, Co-Founder & COO, Real Estate Skills. Licensed real estate agent in California who has bought rental properties in 12+ states. Reviewed the calculator's formulas, defaults, and examples in this guide.
Publication history: Originally published September 18, 2023. Updated October 2026 with a working rental property calculator (cash flow, cash-on-cash, NOI, cap rate, DSCR, break-even rent, and a maximum-price solver), a worked example at October 2026 interest rates, the 1%, 2%, 50%, and 7% rules, and a rebuilt FAQ. Calculator formulas and examples verified by Ryan Zomorodi, Co-Founder & COO of Real Estate Skills.
A rental property calculator turns a rental's price, loan, rent, and expenses into the numbers that decide whether to buy: monthly cash flow, cash-on-cash ROI, cap rate, DSCR, and break-even rent. Ours runs below. A $200,000 house renting for $2,000 shows about $85 a month at 7.75%.
Most rental calculators will happily tell you a deal is great. Type in the seller's rent, leave vacancy at zero, skip repairs, and almost any house looks like a winner. My co-founder Ryan Zomorodi has run this math on more than a thousand properties, and his advice is to use a calculator the other way: change the down payment, the rate, and every expense percentage until you see where the deal breaks and what price actually makes sense.
That's what this one is built for. It starts with conservative defaults, flags the 1% and 50% rules automatically, shows your break-even rent, and works backward to the most you should pay for the return you want. If you'd rather work offline, you can download the free Google Sheets version, and if you want the full method behind each number, our real estate deal analysis spreadsheet guide walks through a real deal line by line.
Free Rental Property Calculator
Enter the purchase price, loan terms, rent, and monthly costs, then adjust the percentages for vacancy, management, repairs, and CapEx. Results update as you type. Green, amber, and red flags show how the deal stacks up against the 1% rule, the 50% rule, and break-even rent.
The numbers already filled in are an example, not a recommendation. Replace each one with figures you've verified for your property.
Monthly cash flow
Cash-on-cash return:
Cash flow plus the loan principal your tenant pays down in year one. Appreciation and taxes aren't included.
NOI ÷ principal and interest. Some lenders divide rent by the full payment instead, which gives a higher number. Ask yours.
Deal checks
The most you should pay
Assumes your rent, rate, down payment, and costs stay the same. Taxes and insurance often change with price, so recheck them.
This calculator is for long-term rentals of one to four units. It doesn't estimate rent, taxes, or insurance for you, and it doesn't include appreciation, income taxes, or depreciation. Everything you enter stays in your browser.
How to Use the Rental Property Calculator
Using the calculator takes five steps, top to bottom:
- Enter the price and your cash in
- Enter your loan terms
- Enter rent and other income
- Enter monthly costs and percentages
- Set your targets and read the flags
The whole thing takes about five minutes once you have your numbers. Getting the numbers right is the real work, so here's what to watch for at each step.
Step 1: Enter the Price and Your Cash In
Enter the purchase price, your down payment percentage, closing costs, and any repairs needed before a tenant moves in. The calculator adds the last three together as your total cash invested, which is the number every return is measured against.
Don't leave closing costs or rent-ready repairs at zero to make a deal look better. Every dollar you leave out makes your cash-on-cash return look higher than it will really be. If you're paying all cash, set the down payment to 100% and the loan rows drop out.
If the down payment is what's holding you back, our guide on how to buy a rental property with no money covers creative financing options, and the calculator will show you how a smaller down payment changes your returns.
Step 2: Enter Your Loan Terms
Enter the interest rate and term a lender quoted you for an investment property, plus any monthly mortgage insurance. The calculator works out your principal and interest payment. Taxes and insurance go in their own rows in step 4, so don't add them here.
Ryan's shortcut for the payment, in his calculator video, is just a quick online mortgage calculator. This one does that math for you. What it can't do is know your real rate. Investment property loans usually price higher than the rate on a home you live in, and a single point on the rate can swing cash flow by a hundred dollars or more a month on a typical loan.
Step 3: Enter Rent and Other Income
Enter the monthly rent you've confirmed with live rental listings, then any other income like laundry, parking, or pet fees. Ryan checks several rent estimators and expects them to disagree, so he runs a best case and a worst case.
Free estimators like Zillow, Redfin, and Rentometer are a good starting point. Run the calculator twice: once at the rent you expect and once at the low end of your range. If the deal only works at the high number, you've learned something important before you've spent a dollar.
Step 4: Enter Monthly Costs and Percentages
Enter property taxes, insurance, HOA dues, and any utilities you pay as monthly dollar amounts. Then set vacancy, management, repairs, and CapEx as a percent of rent. Ryan typically budgets about 8% for management, 5% to 8% for vacancy, and 5% to 10% for repairs.
The dollar amounts are where most bad deals hide. Recalculate taxes at your purchase price instead of copying the seller's bill, and get a real insurance quote for a landlord policy. The percentages are your cushion for the costs you can't predict. Ryan sets them based on the property's age and how much deferred maintenance he can see, so an older house gets higher numbers. If you plan to hire a manager, our guide to property management companies explains what they typically handle and charge.
Step 5: Set Your Targets and Read the Flags
Enter the monthly cash flow and cash-on-cash return you'd need to buy. The calculator shows the most you could pay to hit each one, and flags the 1% rule, the 50% rule, cash flow, and DSCR in green, amber, or red.
Then do what Ryan recommends: start changing things. Try a bigger down payment. Try a higher rate. Raise the repair percentage. Watch which change breaks the deal and by how much. A result you only get with perfect inputs isn't a result you can count on.
How To Analyze Rental Properties (FREE CALCULATOR)!
Ryan walks through the same inputs this calculator uses (rent, expenses, cash flow, and cash-on-cash return) and explains how he decides what a deal is worth to him.
Prefer A Spreadsheet? Get The Free Google Sheets Version
Our free Google Sheets rental calculator takes the same purchase, loan, rent, and expense inputs and returns monthly cash flow, annual cash flow, and cash-on-cash return, so you can save a copy for every deal you look at. It doesn't calculate NOI, cap rate, DSCR, or break-even rent yet, so use the calculator above for those. Change its vacancy cell from 0% before you trust a result.
Get The Free Template →Enter your email and we'll send you the link.
How to Read Your Results
Start with monthly cash flow and cash-on-cash return, then check break-even rent and DSCR for your margin of safety. If a number looks weak, the fix is usually one of three levers: a lower price, more cash down, or a better interest rate.
Every result answers a different question. Here's what each one tells you and what to try when it comes back weak.
| Result | What it tells you | If it looks weak, try |
|---|---|---|
| Monthly cash flow | Whether the property pays you or you pay it | A lower price (see the most you can pay), more down, or a lower rate |
| Cash-on-cash return | How hard the cash you put in is working | A lower price. More down raises cash flow, but it doesn't always raise this percentage |
| First-year total return | Cash flow plus the loan principal your tenant pays down | Read it alongside cash-on-cash, not instead of it. Principal paydown isn't cash you can spend |
| Net operating income (NOI) | What the property earns before the mortgage | If NOI is weak, the problem is the property (rent or costs), not the loan |
| Cap rate | The return if you paid all cash | Use it to compare two properties, not to judge a single-family house on its own. Our cap rate calculator goes deeper |
| DSCR | How well the property's income covers the loan | Below 1.0 means the rent doesn't cover the payment from NOI. Lower the loan amount or find a better rate. If you're financing with a DSCR loan, compare DSCR lenders before you rely on one number |
| Break-even rent | The rent where cash flow hits $0 | If it's within a few hundred dollars of your rent, one vacancy or repair can flip the year negative |
| Gross rent multiplier | Price compared to a year of rent | A quick way to compare similar rentals in the same neighborhood. Lower means more rent for the price |
| Rent-to-price | The 1% rule, as a percentage | Under 0.75% is a warning sign at today's rates. See the example below |
Cash-on-cash and first-year total return are different on purpose. Cash-on-cash only counts money that lands in your account. First-year total return adds the principal your tenant's rent pays down on the loan, which builds your equity but doesn't help you pay a surprise repair bill. If cash flow is negative, a decent total return doesn't make the deal safe. It means you're paying each month to build equity. Ryan's rule for a first rental is simple: don't buy one that doesn't cash flow.
What's a "good" number? There isn't one answer. Ryan has seen investors accept cash-on-cash returns anywhere from about 5% to more than 10%, depending on the market and what else they could do with the money. The better question is what you'd need to make this worth it. Put that in the target boxes and let the calculator tell you the price.
Example: A 1% Rule House at Today's Rates
A $200,000 house renting for $2,000 passes the 1% rule. At a 7.75% rate with 25% down and conservative budgets, it clears about $85 a month, a 1.7% cash-on-cash return. It fails the 50% rule, and rent can drop just $115 before cash flow turns negative.
This is the example already loaded in the calculator above, so you can follow along and change anything you like. It's a made-up house with round numbers, built to answer one question: does a house that passes the 1% rule still work at today's rates?
| Row | Amount |
|---|---|
| Purchase price | $200,000 |
| Down payment (25%) + closing costs + rent-ready repairs | $50,000 + $6,000 + $4,000 = $60,000 cash in |
| Loan | $150,000 at 7.75% for 30 years |
| Monthly principal and interest | $1,075 |
| Monthly rent | $2,000 (exactly 1% of the price) |
| Vacancy (8%) | −$160 |
| Taxes + insurance | $200 + $120 |
| Management (8%) + repairs (5%) + CapEx (5%) | $160 + $100 + $100 |
| NOI | $1,160 a month |
| Cash flow | $85 a month ($1,025 a year) |
| Cash-on-cash return | 1.7% |
| First-year total return (adds about $1,317 of principal paydown) | 3.9% |
| Cap rate | 7.0% |
| DSCR | 1.08 |
| Break-even rent | $1,885 |
On paper, this looks like the kind of deal investors hunt for. Rent is exactly 1% of the price, and the cap rate is 7%. But the property only clears $85 a month, which is one plumbing call away from zero.
The rate is why. The 7.75% in this example is an assumption, not a quote. As of mid-October 2026, Freddie Mac's weekly survey had the average 30-year fixed rate at 7.40%, and investment property loans usually price above that. The rate moves this deal more than anything else:
| Rate | Monthly principal and interest | Cash flow | Cash-on-cash |
|---|---|---|---|
| 6.75% | $973 | $187 | 3.7% |
| 7.40% | $1,039 | $121 | 2.4% |
| 7.75% | $1,075 | $85 | 1.7% |
| 8.75% | $1,180 | −$20 | −0.4% |
The 50% rule caught it before the 1% rule did. Half the rent is $1,000, and the mortgage payment is $1,075. That's the 50% rule saying this deal will struggle to cash flow. Unlike Ryan's brand-new Nashville rental, where actual costs ran well under 50%, this example budgets for an average house, so the warning holds.
What would make it work? Three things move the result: a lower price, a lower rate, or more rent. To clear $200 a month at 7.75%, you'd need about $2,155 in rent at this price, or a price closer to $179,000 at $2,000 rent. The next section shows how to find that number on any deal.
You Know How To Run The Numbers. Now Learn Where To Find The Deals.
A 1% deal isn't enough anymore. At today's rates, most listings won't cash flow no matter how you run the numbers. Our FREE Training shows how we find deals on the MLS, including rental properties, without spending a dollar on marketing. Watch it today, then run every property you find through this calculator before you make an offer.
Watch The FREE Training →How to Find the Most You Should Pay for a Rental
Set the monthly cash flow or cash-on-cash return you need in the target boxes, and the calculator works backward to the highest price that still hits it. In the example, $200 a month means paying no more than about $179,000, and 8% cash-on-cash means about $155,000.
Most people use a calculator to check the price a seller is asking for. Ryan uses it the other way around: he adjusts the down payment, the rate, and the expense assumptions to figure out what price actually makes sense for him, then he decides whether to make an offer at that number.
The target boxes do that work for you. Holding everything else steady (your rent, rate, down payment percentage, and costs), the calculator finds the price where your cash flow or cash-on-cash return lands exactly on your target. Here's how that plays out on the example house:
| Your target | Most you can pay | Cash flow at that price | Rent-to-price |
|---|---|---|---|
| $200 a month | about $178,700 | $200 | 1.12% |
| $300 a month | about $160,100 | $300 | 1.25% |
| 6% cash-on-cash | about $167,600 | about $265 | 1.19% |
| 8% cash-on-cash | about $155,300 | about $326 | 1.29% |
Notice how far below the 1% rule those prices land. At today's rates, hitting a real cash flow target on this house means paying a price where rent works out to 1.1% to 1.3% of it.
Three cautions before you take a number to a seller:
- Taxes and insurance change with price: The calculator holds them steady, but a lower purchase price usually means a lower tax bill after reassessment. Recheck both at your offer price.
- The rate has to be real: If you solved at 7.75% but your lender quotes 8.25%, your maximum price drops. Rerun it with the actual quote.
- This is your ceiling, not your offer: It's the most you can pay and still hit your goal. Whether a seller will accept it, and what to offer first, are separate decisions.
If the most you can pay is far below the asking price, that's useful information too. It tells you to keep looking, or to come back if the listing sits and the price drops.
The 1%, 2%, 50%, and 7% Rules
These are quick screens, not answers:
- 1% rule: monthly rent of at least 1% of the price.
- 2% rule: at least 2%.
- 50% rule: about half the rent goes to operating costs.
- 7% rule: annual rent of at least 7% of the price.
The calculator checks the 1% and 50% rules automatically.
Rules of thumb exist so you don't waste an hour on a deal that was never going to work. Use them to decide which listings deserve a full run through the calculator. None of them can tell you whether to buy.
The 1% Rule
Monthly rent should be at least 1% of the purchase price, so a $200,000 house should rent for $2,000 or more. Ryan treats about 0.75% as his floor and 1% as the goal. In expensive markets, rentals often trade closer to 0.5%.
The calculator shows your rent-to-price ratio and flags it green at 1% or higher, amber between 0.75% and 1%, and red below 0.75%. But as the example above shows, passing this rule at today's interest rates doesn't mean the deal cash flows. It just means it's worth a closer look.
The 2% Rule
The 2% rule says monthly rent should be at least 2% of the price, so a $100,000 house would need $2,000 a month. Properties that meet it usually sit in lower-priced markets or need significant work, and the rule says nothing about costs.
Think of it as a stricter version of the 1% rule from a time when cheaper properties were easier to find. You'll occasionally see 2% deals in small towns, rural areas, and some of the markets on our list of positive cash flow real estate states. The higher rent often comes with higher repairs, more turnover, or slower appreciation, so the calculator's repair and CapEx percentages matter even more on these deals. Enter one and the rent-to-price result will show 2% or higher.
The 50% Rule
The 50% rule estimates that about half your rent will go to operating costs (everything except the mortgage). If the other half doesn't cover the principal and interest payment, the deal probably won't cash flow. The calculator runs this check for you.
It's a useful shortcut because most beginners underestimate costs. Repairs, vacancies, management, and big replacements add up to far more than the taxes and insurance people remember. On older houses, real costs can run above 50%. On new construction, they're often well below it, which is why Ryan's Nashville rental cash flowed even though it technically failed this rule.
If a deal fails the 50% rule but your detailed costs are lower, the calculator will show it. Just make sure those lower costs are real, not wishful.
The 7% Rule
The 7% rule is the least standardized of these. The most common version says a property's annual rent should be at least 7% of its price. That works out to monthly rent of about 0.58% of the price, a much looser bar than the 1% rule.
Because the 7% rule is so loose, plenty of properties that pass it won't come close to cash flowing at current interest rates. A $300,000 house passes with $1,750 a month in rent. Run that through the calculator with honest costs and a 7.75% rate, and it comes out well negative.
Don't confuse it with the 70% rule, which is a house-flipping formula about the most to pay relative to a property's after-repair value. That one doesn't apply to rentals.
What This Calculator Doesn't Include
This calculator covers the first year of a long-term rental of one to four units. It doesn't include appreciation, income taxes, depreciation, or a sale, and it can't check whether your rent, tax, and insurance figures are real. Those limits are deliberate.
This calculator is an educational tool, not financial or tax advice. Its results are only as accurate as what you enter. Confirm your numbers with a licensed lender, insurance agent, and tax professional before you buy.
I'd rather tell you what this tool leaves out than have you trust it for something it can't do.
- Appreciation: Left out on purpose. Ryan's rule is that a rental has to work on cash flow alone, and future price growth is a bonus, not part of the buy decision. If you want to model long-term returns, including appreciation, our guide on how to calculate ROI on rental property walks through it.
- IRR and multi-year projections: IRR (internal rate of return) measures your return over several years, including rent growth, appreciation, and a future sale. Every one of those is a guess. This calculator sticks to the year you can actually underwrite.
- Income taxes and depreciation: Rental income is taxable, and depreciation can offset some of it, but the result depends entirely on your situation. IRS Publication 527 explains how rental income and depreciation are reported, our guide to tax on rental income covers the basics, and a CPA can tell you what applies to you.
- Short-term rentals: Nightly rates, occupancy, cleaning, and platform fees work differently from a monthly lease. Use a tool built for short-term rentals.
- Five or more units: These buildings are financed and valued as commercial property, on their income, so you'll need a commercial analysis.
- Whether your numbers are true: The calculator does the math correctly on whatever you type. If the rent is optimistic or the insurance figure is a guess, the result will be wrong too. Verify every input before you trust the answer.
Rental Property Calculator FAQs
Final Thoughts on Using a Rental Property Calculator
A rental property calculator is only useful if you let it say no. Most of the deals you run through it won't work at today's rates, and that's the point. Every bad deal it kills is money you didn't lose.
So here's your next step. Pull up three rentals listed for sale in your market right now. For each one, confirm the rent with live rental listings, recalculate the taxes at the asking price, and replace the example numbers above with yours. Then set your targets and look at the most you could pay. If that number is far below the asking price, you've just learned what your market really costs.
If you're still working toward your first purchase, our guide on how to buy your first rental property walks through financing, finding the property, and getting it rented. And when you're ready to go deeper on any single number, our full set of real estate investment calculators covers cap rate, flips, wholesale deals, and more.
Ready To Find A Rental That Clears Your Targets?
The calculator tells you the most you can pay. Finding a property at that price is the hard part. Our FREE Training shows how we find deals on the MLS for rentals, flips, and wholesale deals without spending money on marketing. Watch it, then bring your next property back here and run the numbers.
Watch The FREE Training →
About The Author
Founder & CEO, Real Estate Skills
Alex Martinez is the Founder and CEO of Real Estate Skills. He has wholesaled and flipped houses for over 14 years, been part of 1,000+ real estate transactions, personally acquired 55+ residential investment properties, and trained 6,000+ investors nationwide.
Real Estate Skills is not a law firm, lender, or financial advisor, and the information and calculator in this article are provided for educational purposes only. They do not constitute legal, tax, or financial advice. Calculator results depend entirely on the figures you enter. Mortgage rates, insurance costs, property taxes, and landlord-tenant laws vary by location and change over time. Real estate investing carries risk, past results do not guarantee future outcomes, and the examples in this article are illustrations, not typical results. Always consult a licensed lender, tax professional, and attorney before buying an investment property.
👉FREE Training
How To Consistently Wholesale, Flip Houses, & Invest In Rental Properties From The MLS
(Without Spending $1 On Marketing)
Alex Martinez, the founder of Real Estate Skills, is known for his strong, practical expertise in real estate, starting from a beginner with no family connections in the industry to acquiring over 55 real estate deals, including wholesale and flips, within his first year.
He has dedicated his career to providing cutting-edge education and resources for real estate professionals. He emphasizes the importance of self-taught knowledge through mentors, books, and hands-on experience.
His journey from earning a modest income to becoming a successful real estate entrepreneur and educator showcases his expertise and dedication to the field.
Ryan Zomorodi, co-founder and COO of Real Estate Skills, leverages his experience from a diverse background in real estate investment, construction management, and entrepreneurship to provide comprehensive education in the real estate sector.
His expertise is rooted in hands-on experience, extensive industry knowledge, and a commitment to empowering others through education.
Ryan's journey reflects a blend of practical experience and entrepreneurial success, contributing to his role in developing a platform that educates and supports aspiring real estate professionals.
Read Ryan's Full Bio >>
