Rental Property Calculator

Welcome to RentalPropertyCalculator.com. You can use the calculator below to calculate every aspect of your rental property’s investment prospects. Cash flow, how much of your mortgage will be interest versus principle, your IRR per year, your total return, your depreciation – it’s all here.

Wondering how to use the calculator? See the instructions and enjoy all its benefits.

How to Use the Rental Income Calculator

Using this real estate calculator is simple. If you follow the basic steps, you’ll soon see what your potential return is for your property. You’ll see the capitalization rate, the total closing costs, the cash flow, the net operating income – you’ll see it all.

You’ll be able to see your ROI, IRR, cash flow, etc.

If you have any feedback, suggestions, or even if you spot a bug or glitch, use the contact form and let us know what you think about the calculator.

Add Purchase Info. Enter how much you will be purchasing the property for, including your down payment figures, financing details, etc.

Add Expenses. Enter what expenses you’re expecting to have, including closing costs, property taxes, insurance, etc.

Add Income. Enter the potential rental income you’ll receive every month.

Add the Exit. Enter your exit assumptions, like how much you expect to sell for, how much you will or will not be paying a real estate agent, etc.

Calculate. Hit the “calculate” button.

Why Use an Investment Property Calculator?

If you want to be a successful rental property investor, you need to constantly run the numbers before buying a property. Run the numbers optimistically, run the numbers conservatively – just test out every possible combination.

See what your returns would be if you had unexpectedly high vacancies if insurance prices started to increase by 10% per year for a while, if there was no appreciation for longer than you wish, etc. Just test every possible scenario.

If you do this and the property still looks solid, that’s an incredibly useful signal that you’re making the right investment decision.

Good investors consider every imaginable scenario looking for risks and opportunities. The rental property calculator on this website will help you do just that.

Rental Property Calculator’s Features

Our calculator accounts for every major expense and even splits your mortgage payments up so that principal and depreciation are treated differently based on the amortization schedule.

Here are just some of the calculator’s features:

Predict your yearly cash flow

Predict your internal rate of return (IRR), for each year

Predict your total return on investment (ROI), for each year

Predict net operating income (NOI), for each year

Predict your debt service coverage ratio (DSCR), for each year

Predict your capitalization rate in year one

Predict your cash to receive at closing if you sell

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Learn Real Estate Investing

Key Terms in the Rental Property Calculator

See all the key terms of the rental calculator in an explanatory way to guide you and answer any questions you may have about its use.

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Rental Property Investment Strategy

One of the reasons we build our rental income calculator is to help potential investors navigate the numbers before they pull the trigger. Strategy requires flexible planning, not just firing wildly.

Learn more about investment Strategy ...

How to Build an Income-Property Portfolio

For your funding, you can start with personal savings, loans from family and friends, hard money loans, selling something you already own, refinancing your own home, etc. There are many ways to acquire funding, though some are much riskier than others.

Learn more about portfolio ...

Rental Investment Tips to Maximize Cash Flow

So you want to buy properties and become a rental property investor? Good. If you do your calculations correctly, your rental property investments can provide cash flow, appreciation, and principal payments. That means huge returns.

Here are some tips that can drastically increase your rental property’s cash flow:

Consider properties in small towns

Not every rental should be in the city; small towns sometimes have drastically higher cap rates, meaning your cash flow will be higher from the get go.

Find mismanaged rental properties

It’s incredible how many rental properties are simply not managed correctly. Is someone renting for 50% of what a unit is worth? There’s your big cash flow surge.

Find cheap ways to increase rent

Not every rental should be in the city; small towns sometimes have drastically higher cap rates, meaning your cash flow will be higher from the get go.

Use this calculator over and over

Our property calculator was specifically designed for you to be able to use a basic formula to see which property you should - or shouldn’t - buy. Use it over and over. Change the assumptions. Never stop testing.

Follow these tips, and you’ll see your cash flow and cash-on-cash returns go way up over time.

Calculating Your Rental Property Returns

There are quite a few different ways to calculate the returns you’re receiving from your rental properties. The trick is to make sure you buy at the right price, so that your property value is higher than what you paid, leading to instant returns.

The simplest way to calculate the total return of your rental property investments is to add up the following at the end of the year:

• Cash flow
• Appreciation
• Mortgage principal payments

All rental property returns come from these three variables. Want to earn more? Figure out ways to maximize them.

There are other metrics that are important, like net operating income/NOI, cash-on-cash returns, etc, but the above concepts are what you should focus on first.

Rental Property Management: Good or Bad?

One of the number one reasons people don’t become property investors is because they’re worried about 3am calls from renters about plumbing issues. This is all largely an unfounded fear. Real estate is one of the best sources of passive, long-term returns possible.

If you want to streamline you rental investments, then use a rental property management service. Rental property managers will:

• Find renters
• Do background checks
• Do credit checks
• Manage contracts
• Collect rent
• Maintain property

• Fix anything broken
• Light rehab
• Handle late pay
• Handle evictions
• Help sell the house
• Find another deal

They’ll find renters, sign contracts, handle evictions, take care of maintenance, even help you find more deals and sell properties you don’t want anymore.

If you’re good at sourcing properties that gush cash and have good property value, then a rental property management service can help you streamline the process and build a passive-income empire.

From the Real Estate Blog

Read our blog to learn how to calculate your real estate investing returns - as well as how to get started with some advanced rental property strategies.