Rental property ROI calculator
Evaluate a rental deal in seconds. Enter the purchase price, down payment, rent, and expenses to see monthly cash flow, cap rate, and cash-on-cash return.
Enter a purchase price, rent, and expenses to see your projected returns.
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Frequently asked questions
What is cash-on-cash return?
Cash-on-cash return measures the annual pre-tax cash flow from a rental property relative to the actual cash you invested (typically the down payment). For example, if you put $40,000 down and the property generates $4,800 in annual cash flow, your cash-on-cash return is 12%.
What is a good cap rate for a rental property?
Cap rates vary widely by market and property type, but many investors target roughly 5–8% for residential rentals in stable areas, with higher cap rates often reflecting more risk or lower-cost markets. Cap rate is best used to compare similar properties, not as a single deal-or-no-deal number.
What expenses should I include?
Include all recurring operating costs: property taxes, insurance, HOA fees, property management fees, a maintenance/repair allowance, and a vacancy allowance. Do not include the mortgage principal and interest — the calculator subtracts the mortgage payment separately to show true cash flow.
Does this calculator include closing costs?
For simplicity, this calculator uses the down payment as the cash invested figure. If you want a more precise cash-on-cash return, add your estimated closing costs to the down payment mentally, since both are upfront cash outlays.
Can PropVecto help once I own the rental?
Yes. PropVecto gives you a branded tenant portal for online rent collection, automatic invoices, late fees, and autopay — so the income projected here actually arrives on time, every month.