Rental Property Calculator
Analyze cash flow, cap rate, cash-on-cash return, and year-one projections for rental investments.
Investment Metrics
Year 1 Projections
| Item | Annual Amount |
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What is a Rental Property Calculator?
A rental property calculator evaluates the financial performance of real estate investments. It computes cash flow, capitalization rate, cash-on-cash return, and gross rent multiplier to help investors compare properties and make informed decisions.
Cap rate measures unlevered return using net operating income, while cash-on-cash return focuses on the actual cash invested. These metrics together provide a comprehensive view of a property's profitability.
How to Use
- Enter the purchase price and your down payment. The loan amount will auto-fill or you can override it.
- Input the mortgage interest rate, loan term, and expected monthly rent.
- Enter vacancy, operating expenses, property management, and appreciation estimates.
- Click Calculate to see cash flow, cap rate, cash-on-cash return, GRM, and year-one projections.
Frequently Asked Questions
What is a good cap rate?
A good cap rate varies by market, but many investors target 4% to 10%. Higher cap rates indicate higher potential returns but may come with higher risk.
How is cash-on-cash return different from cap rate?
Cap rate ignores financing and uses purchase price. Cash-on-cash return measures annual cash flow against your actual cash invested (down payment and closing costs).
What is gross rent multiplier?
GRM divides the purchase price by annual gross rent. A lower GRM generally indicates a better value, with many investors seeking properties under a GRM of 10.
Does this calculator account for closing costs?
No, closing costs are not included. For a more precise cash-on-cash return, add closing costs and repairs to your down payment input.