Rental Property Calculator

Analyze rental property investments and calculate returns, cash flow, and profitability

🏠 Property Details

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💰 Income

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💸 Annual Expenses

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📈 Investment Analysis

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📊 Investment Analysis Results

Monthly Cash Flow
$382
Cash on Cash Return
9.98%
Cap Rate
8.05%
Total ROI (IRR)
18.42%
Initial Investment $46,000
Annual Rental Income $22,800
Annual Expenses $18,211
Net Operating Income $16,100
Total Profit at Sale $402,304

Investment Summary

Property Value After 20 Years $361,222
Total Rental Income $612,645
Total Mortgage Payments $230,227
Total Expenses $180,032

📈 Cash Flow Projection

Year Rental Income Expenses Cash Flow Cumulative Cash Flow Property Value

📚 Understanding Rental Property Investment

Cash Flow

Monthly cash flow is the money left after all expenses are paid. Positive cash flow means the property generates income beyond its costs.

Cap Rate

Capitalization rate measures the return on investment based on the property's net operating income. Higher cap rates indicate better returns.

Cash-on-Cash Return

This measures the annual return on the actual cash invested. It's calculated as annual cash flow divided by initial cash investment.

1% Rule

A general guideline that monthly rent should equal at least 1% of the property's purchase price for a potentially profitable investment.

50% Rule

Estimates that operating expenses will consume about 50% of rental income. This helps in quick property evaluation and cash flow estimation.

IRR (Internal Rate of Return)

IRR considers the time value of money and all cash flows over the investment period. It's the most comprehensive measure of investment performance.