Calculator Inputs
Use the three-column layout on large screens, two columns on medium screens, and one column on mobile devices.
Example Data Table
This example uses the default values preloaded in the calculator.
| Example Item | Value | Example Item | Value |
|---|---|---|---|
| Purchase Price | $250,000.00 | Monthly Rent | $2,400.00 |
| Down Payment % | 25.00% | Monthly Cash Flow | $171.87 |
| Interest Rate | 6.50% | Cap Rate | 6.08% |
| Hold Period | 10 years | Total ROI | 152.52% |
| Future Sale Price | $335,979.09 | Net Sale Proceeds | $156,865.11 |
Formula Used
1) Loan Amount
Loan Amount = Purchase Price − Down Payment
2) Effective Monthly Income
Effective Income = (Rent + Other Income) × (1 − Vacancy Rate)
3) Monthly Operating Expenses
Operating Expenses = Management + Maintenance + Tax + Insurance + HOA + Utilities + Other Expenses
4) Net Operating Income
NOI = Effective Income − Operating Expenses
5) Monthly Cash Flow
Cash Flow = NOI − Mortgage Payment
6) Cap Rate
Cap Rate = Annual NOI ÷ Total Project Cost × 100
7) Cash on Cash Return
Cash on Cash Return = Annual Cash Flow ÷ Cash Invested × 100
8) Break-Even Occupancy
Break-Even Occupancy = (Operating Expenses + Debt Service) ÷ Gross Scheduled Income × 100
9) Exit Profit
Net Sale Proceeds = Future Sale Price − Selling Costs − Remaining Loan Balance
10) Total Profit
Total Profit = Cumulative Cash Flow + Net Sale Proceeds − Initial Cash Invested
How to Use This Calculator
- Enter the property purchase price and financing assumptions.
- Add upfront costs, including closing and rehab expenses.
- Enter rent, other income, and vacancy assumptions.
- Add recurring expenses such as tax, insurance, HOA, and utilities.
- Set holding period, appreciation, rent growth, expense growth, and selling cost assumptions.
- Click Calculate Rental Profit to display results above the form.
- Review summary metrics, chart trends, and yearly projections.
- Use the CSV and PDF buttons to export your results.
FAQs
1) What does this calculator measure?
It estimates rental income, operating costs, mortgage impact, yearly cash flow, equity growth, sale proceeds, and overall investment return for a property.
2) Why is vacancy included?
Vacancy reduces collectible income. Using a realistic vacancy rate helps prevent overly optimistic cash flow projections and improves deal screening accuracy.
3) What is NOI?
NOI means net operating income. It reflects income after normal operating expenses, but before mortgage payments, income taxes, and owner-specific financing decisions.
4) What is the difference between cap rate and cash on cash return?
Cap rate focuses on property performance before financing. Cash on cash return measures the actual annual return on the cash you personally invested.
5) How is break-even occupancy useful?
It shows the occupancy level needed to cover operating costs and debt service. Lower values generally indicate a stronger margin of safety.
6) Should rehab costs be included?
Yes. Rehab costs affect initial cash invested and total project cost. Ignoring them can overstate profit and understate acquisition risk.
7) Does the calculator include appreciation and exit value?
Yes. It projects future sale price using the appreciation rate, subtracts selling costs and remaining loan balance, then adds net sale proceeds to total profit.
8) Can I use this for comparing multiple deals?
Yes. Change assumptions for each property, calculate results, and compare cash flow, cap rate, ROI, DSCR, and exit proceeds side by side.