Calculator Inputs
Enter property, income, and cost details. Then calculate.
Example Data Table
Use this sample scenario to test your setup.
| Field | Example Value | Reason |
|---|---|---|
| Purchase Price | $220,000 | Starter rental home. |
| Down Payment | 20% | Common lender requirement. |
| Interest Rate | 6.25% | Typical market range scenario. |
| Gross Monthly Rent | $1,900 | Comparable neighborhood rent. |
| Vacancy Rate | 6% | Allows for turnover and downtime. |
| Annual Tax | $2,600 | Local assessed property taxes. |
| Insurance | $1,200 | Landlord policy estimate. |
| Management / Maintenance | 8% / 6% | Reserves for ongoing operations. |
Formula Used
This calculator uses a break-even condition where monthly cash flow equals a target amount.
How to Use This Calculator
- Enter purchase price, down payment, and financing details.
- Fill in your expected rent, vacancy, and other income.
- Add annual taxes, insurance, and monthly operating costs.
- Set management and maintenance percentages as reserves.
- Press Calculate to see break-even rent and occupancy.
- Use Target Cash Flow to find a stronger rent goal.
- Download CSV or PDF to store your scenario output.
FAQs
1) What does “break-even rent” mean?
It is the monthly rent needed so income equals operating costs plus debt service. When rent meets this level, your monthly cash flow becomes zero.
2) What is “break-even occupancy”?
It is the minimum occupancy required at your entered rent to cover costs. If the result is above 100%, your rent is too low for the cost structure.
3) Why include vacancy rate?
Vacancy reduces rent actually collected. Even good properties face turnover, repairs, and marketing gaps. A realistic vacancy rate prevents overly optimistic projections.
4) Are management and maintenance percentages required?
No. They are optional reserves that scale with collected rent. Use them to reflect real-world costs that rise with income, such as maintenance intensity or third‑party management.
5) What is NOI and why is it useful?
NOI is income after operating expenses, before financing. It helps compare properties consistently, regardless of loan terms, and is used in cap rate calculations.
6) What is DSCR?
DSCR is NOI divided by monthly debt service. Lenders often prefer higher DSCR because it indicates greater ability to pay the mortgage from operating income.
7) How is cash-on-cash return calculated here?
It divides annual cash flow by your cash invested. Cash invested includes down payment, closing costs, and upfront repairs. It shows the return on the cash you actually put in.
8) Does this include appreciation or tax benefits?
No. This focuses on operating break-even and cash flow. Appreciation, depreciation, and taxes can materially change real returns, but they require assumptions beyond monthly operating analysis.