Real Estate Investment Calculator

This calculator helps you analyze rental property investments by evaluating both cash flow and long-term wealth building potential. Simply enter your property details in the input sections, and the calculator will automatically update all results in real-time. See below for definitions of the terms used in the results section.

Rental Property Calculator

Purchase Info

Purchase Price:

Down Payment:

Loan Amount:

After Repair Value:

Cost of Repairs:

Financing

Interest Rate (%):

Loan Period (years):

Monthly Payment:

Income

Gross Monthly Rent:

Other Monthly Income:

Annual Income Increase (%):

Expenses

Property Tax (monthly):

Insurance (monthly):

PMI (monthly):

Maintenance (monthly):

Property Management (%):

Vacancy Rate (%):

Annual Expense Increase (%):

Other Expenses (monthly):

Analysis Results

Monthly Cash Flow

Income minus all expenses

Cash on Cash Return

Annual cash flow / cash invested

Cap Rate

NOI / Property value

Total ROI

Including appreciation

Purchase Cap Rate

Based on purchase price

Rent to Price Ratio

Monthly rent / purchase price

Total Equity @ 5 Years

Appreciation + mortgage paydown

Total Equity @ 10 Years

Appreciation + mortgage paydown

Total Equity @ 15 Years

Appreciation + mortgage paydown

10-Year Cash Flow Projection

Year	Gross Income	Expenses	Mortgage	Cash Flow	Cumulative

Disclaimer: This calculator provides estimates based on the information you provide. Actual results may vary significantly due to market conditions, maintenance costs, vacancy rates, and other factors. Please consult with a qualified real estate professional and financial advisor before making investment decisions.

Results Definitions

Monthly Cash Flow

What it means: Your monthly profit or loss after all income and expenses Formula: Monthly Income – Monthly Expenses – Monthly Mortgage Payment Good vs. Bad:

Positive = You make money each month
Negative = You lose money each month Target: $100+ positive cash flow is generally considered good

Cash on Cash Return

What it means: Annual return on the actual cash you invested Formula: (Annual Cash Flow ÷ Total Cash Invested) × 100 Good vs. Bad:

8-12% = Excellent
5-8% = Good
Below 5% = Poor Why it matters: Compares your return to other investments like stocks or bonds

Cap Rate (Capitalization Rate)

What it means: The property’s return on investment without considering financing Formula: (Annual Net Operating Income ÷ Property Value) × 100 Good vs. Bad:

8%+ = Excellent
6-8% = Good
4-6% = Fair
Below 4% = Poor Why it matters: Helps compare properties regardless of how they’re financed

Total ROI (Return on Investment)

What it means: Your total annual return including cash flow and property appreciation Formula: (Annual Cash Flow + Annual Appreciation) ÷ Total Cash Invested × 100 Good vs. Bad:

12%+ = Excellent
8-12% = Good
Below 8% = Consider other investments Why it matters: Shows your complete investment performance

Purchase Cap Rate

What it means: Cap rate based on your actual purchase price (vs. current market value) Formula: (Annual Net Operating Income ÷ Purchase Price) × 100 Why it matters: Shows the deal quality you negotiated

Rent to Price Ratio

What it means: Monthly rent as a percentage of purchase price (also called the “1% Rule”) Formula: (Monthly Rent ÷ Purchase Price) × 100 Good vs. Bad:

1%+ = Excellent cash flow potential
0.8-1% = Good
Below 0.8% = May have poor cash flow Why it matters: Quick screening tool for cash flow properties

Total Equity @ 5/10/15 Years

What it means: Your total ownership value in the property after X years Formula: Appreciated Property Value – Remaining Mortgage Balance Components:

Property appreciation (assumed 3% annually)
Mortgage principal paydown from monthly payments Why it matters: Shows long-term wealth building through real estate

Disclaimer

This calculator provides estimates for analysis purposes only. Actual results will vary based on:

Market conditions and property appreciation rates
Actual vacancy rates and maintenance costs
Changes in interest rates and property taxes
Local rental market conditions
Your property management effectiveness

Always consult with qualified real estate professionals, accountants, and financial advisors before making investment decisions. Consider getting professional property inspections, market analysis, and legal review of all transactions.