🏘️ Rental Property Calculator
Analyze a rental property investment from every angle — monthly cash flow, cap rate, cash-on-cash return, and long-term ROI including appreciation and equity buildup.
Property & Purchase Details
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Income & Expenses
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Monthly Cash Flow
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Cap Rate
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Cash-on-Cash Return
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Gross Rent Multiplier
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Mortgage Payment
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Total Monthly Expenses
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Effective Gross Income
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NOI (annual)
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Total Cash Invested
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10-Year Total Return
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10-Year Annualized ROI
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Key Rental Property Metrics Explained
| Metric | Formula | Benchmark |
|---|---|---|
| Cap Rate | NOI / Property Value | 5–10% is generally good |
| Cash-on-Cash | Annual Cash Flow / Cash Invested | 8%+ is considered strong |
| Gross Rent Multiplier | Price / Annual Rent | Lower is better (under 12×) |
| 1% Rule | Monthly Rent ≥ 1% of Price | $300k property needs $3k/mo rent |
| 50% Rule | Expenses ≈ 50% of gross rent | Quick estimate, not precise |
What is a good cap rate for rental property? +
Cap rate (capitalization rate) depends heavily on location. In high-cost cities like NYC or SF, cap rates of 3–4% are common because appreciation potential is high. In mid-tier cities, 5–7% is typical. In smaller markets or for higher-risk properties, 8–10%+ is common. Always compare to local market cap rates, not national averages.
What is the 1% rule for rental property? +
The 1% rule states that monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for at least $2,000/month. This is a quick screening tool, not a definitive metric. In expensive coastal markets, achieving 1% is nearly impossible; in the Midwest or South, 1.5–2%+ is achievable. Always run a full cash flow analysis.
Should I hire a property manager? +
Property managers typically charge 8–12% of monthly rent plus fees for leasing, maintenance, and evictions. For a $2,000/month rental, that's $160–$240/month. The trade-off: they handle tenant communication, maintenance coordination, rent collection, and legal compliance. If you own multiple properties, live far from them, or value your time, professional management often makes sense even at the cost of some cash flow.