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Rental Property ROI Calculator

Enter purchase price, rent, expenses, and financing — get monthly cash flow, cap rate, cash-on-cash return, break-even occupancy, and 5 and 10-year total ROI with equity and appreciation.

Where this fits

🏠 Real EstateHome BuyingFoundersHomeowners

This tool lives inside Home Buying and is most useful for founders and homeowners.

30yr Fixed Avg~6.8%
Standard Down20%
DTI Limit (QM)43%

Purchase

Purchase Price
$
Down Payment
%
Closing Costs
$
Repair / Renovation
$
Total cash invested: $82,000 · Loan: $280,000

Income

Monthly Rent
$
Other Income / mo
$
Vacancy Rate
%

Expenses

Property Tax / yr
$
Insurance / yr
$
HOA / mo
$
Maintenance
% of value/yr
Prop. Mgmt
% of rent
Utilities / mo
$

Financing

Interest Rate
%
Monthly payment: $1,862.85

Appreciation

Annual Appreciation
%
Monthly Cash Flow
-$375
-$4,494 / year
Cap Rate
5.1%
Cash-on-Cash
-5.5%
5yr ROI
60.6%
10yr ROI
140.4%
1% Rule: $2,400/mo rent on $350,000 property0.69% ✗
Break-even occupancy rate110.6%

Monthly Expense Breakdown

Mortgage (P&I)
$1,862.85
Property Tax
$350.00
Insurance
$150.00
Maintenance
$291.67
Total Out$2,654.51
Effective Income$2,280.00
1

Net Operating Income (NOI)

NOI = (effectiveRent − operating expenses) × 12

= ($2280/mo − $792/mo) × 12

= $17,860 / year

Effective rent accounts for vacancy rate. Operating expenses exclude mortgage.

CCIM standard real estate investment analysis

2

Cap Rate

Cap Rate = NOI ÷ purchasePrice

= $17,860 ÷ $350,000

= 5.1%

Measures return independent of financing. 5–8% is generally considered acceptable.

3

Monthly Cash Flow

Cash Flow = effectiveRent − expenses − mortgage

= $2,280/mo − $792/mo − $1,863/mo

= -$375 / month (-$4,494 / year)

4

Cash-on-Cash Return

CoC = annualCashFlow ÷ totalCashInvested

= -$4,494 ÷ $82,000

= -5.5%

Total cash invested = down payment + closing costs + repairs.

5

5-Year Total Return

Total Return = cashFlows + equityGained + appreciation

= -$22,471 + $16,432 + $55,746

= 60.6% ROI over 5 years

Key insight

Cap rate of 5.1% exceeds the 8% threshold that most experienced investors target. With -$375/mo cash flow, this deal cash-flows positively — the real risk is vacancy and deferred maintenance, which your 1.0% maintenance reserve helps absorb.

#ShowYourWork

Total Return Projections

5-Year Horizon
60.6%
Cash flow: -$22,471
Equity: $16,432
Appreciation: $55,746
10-Year Horizon
140.4%
Cash flow: -$44,942
Equity: $39,725
Appreciation: $120,371
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