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Silvia

Mortgage & Real Estate

Rental Property Calculator

Model rental income, expenses, financing, cap rate, and cash-on-cash return for an investment property.

Best for: Estimate rental income, operating cash flow, cap rate, cash-on-cash return, and financed property performance.

Your assumptions

Calculate your estimate

Your result

Rental Property estimate

Monthly cash flow
$254.21
Cap rate
6.6%
Cash-on-cash return
3.05%
Estimated first-year appreciation
$12,000.00

How to use this rental property calculator

Use this rental property calculator to evaluate income, operating expenses, financing, and appreciation in one scenario. It separates property-level performance from the cash return on the equity invested.

  1. 1

    Model realistic rental income

    Enter achievable monthly rent and reduce it outside the calculator when vacancy or concessions are likely.

  2. 2

    Include recurring operating costs

    Use monthly expenses that reflect taxes, insurance, management, maintenance, utilities, and other owner-paid costs.

  3. 3

    Stress-test financing and vacancy

    Compare a higher expense estimate, lower effective rent, or different down payment before relying on the projected return.

Worked planning example

Example: optimistic rent versus conservative operations

Set up

Model the purchase price, down payment, rent, operating expenses, mortgage terms, and expected appreciation.

Compare

Run a second case with lower effective rent and higher expenses while keeping financing constant.

Takeaway

A property that only works under perfect occupancy and minimal maintenance has limited room for operating surprises.

Separate property return from financing return

Cap rate evaluates operations before financing, while cash-on-cash return considers the cash invested and financed cash flow.

  • Reserve for vacancy, repairs, capital expenditures, and leasing costs.
  • Include acquisition and selling costs when evaluating the full holding period.
  • Treat appreciation as uncertain rather than necessary for the property to work.

Calculation methodology and assumptions

For this rental property estimate, Silvia uses purchase price, down payment, monthly rent, monthly operating expenses, mortgage interest rate, mortgage term, estimated annual appreciation. Model rental income, expenses, financing, cap rate, and cash-on-cash return for an investment property. Results are estimates, not quotes, tax advice, or investment recommendations.

Frequently asked questions

What is the difference between cap rate and cash-on-cash return?

Cap rate divides net operating income by property value before financing. Cash-on-cash return compares annual financed cash flow with the cash invested.

Should mortgage payments be included in operating expenses?

No. Net operating income is generally calculated before financing. The calculator applies mortgage payments separately when estimating financed cash flow.

Does the calculator include vacancy and major repairs?

There are no separate vacancy or capital-expenditure fields. Reflect them in effective rent or operating expenses before relying on the estimate.

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