Free Tool

Rental Property ROI Calculator

Analyze any investment property in seconds. Get cap rate, cash-on-cash return, monthly cash flow, and total ROI — including appreciation over your hold period.

Cap rate analysisCash-on-cash return1% rule checkTotal ROI with appreciation

Property

$
5%50%
%
$

Rental Income

$
%
$

Parking, laundry, etc.

Expenses

%
%
%
%
%
$

Hold Period & Growth

1 yr30 yrs
%
%
Cap Rate
4.10%
Average
Cash-on-Cash
-5.20%
Below avg
Monthly Cash Flow
-$425
-$5,096/year
1% Rule
0.71%
✗ Fails
Total Cash Invested
Down Payment (25%)$87,500
Closing Costs (3%)$10,500
Total Cash In$98,000
Monthly Income vs Expenses
Effective Rent (92% occupied)+$2,300
Mortgage (P&I)−$1,620
Tax + Insurance−$583
Maintenance + Mgmt−$522
Net Cash Flow-$425
After 10 Years
Future Property Value$493,710
Remaining Mortgage−$221,238
Selling Costs (6%)−$29,623
Cumulative Cash Flow+-$50,961
Total Profit$93,888
Total ROI95.80%
Annualized ROI6.95%
Gross Rent Multiplier11.7x
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How It Works

How We Calculate Rental ROI

This calculator gives you a complete picture of rental property returns — not just monthly cash flow, but total ROI including appreciation over your planned hold period.

Cap Rate measures the property's income return independent of financing. A cap rate above 5% is generally considered strong for residential rentals in 2026.

Cash-on-Cash Return measures actual cash income relative to cash invested. It accounts for your mortgage, making it a better measure of your personal return than cap rate.

The 1% Rule is a quick screen: monthly rent should be at least 1% of purchase price. It doesn't guarantee positive cash flow but filters out obvious losers.

Benchmark Returns (2026)

Cap Rate
< 3%3–5%5%+
Cash-on-Cash
< 4%4–8%8%+
GRM
> 15x10–15x< 10x
Below avgAverageStrong

Key Rules of Thumb

1% Rule
Monthly rent ≥ 1% of purchase price
50% Rule
Operating expenses ≈ 50% of gross rent
70% Rule
Max buy price for flips: 70% of ARV minus repairs
DSCR ≥ 1.25
NOI ÷ debt service — lender minimum for investment loans
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