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//// Financial · Real Estate Investing

Rental Property ROI Calculator

Monthly cash flow, cap rate, cash-on-cash return, and 30-year appreciation scenarios for any rental property.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Property Details

$
$
%
%
$

Annual Expenses

$
$
$
%
%

Results

Net monthly cash flow

-$425

-$5,102 annually

Negative cash flow means you'll contribute $425/mo out of pocket. This can still be a good investment if appreciation + equity buildup exceed the carrying cost.

Cap rate

4.7%

NOI ÷ price

Cash-on-cash return

-7.4%

annual CF ÷ invested

Gross rent multiplier

11.4×

price ÷ annual rent

Monthly mortgage

$1,597

30-yr at 7.0%

Total cash invested

$69,000

down + ~3% closing

Loan amount

$240,000

80% financed

Monthly Expense Breakdown

Property tax$300
Insurance$100
Management fee (10%)$202
Maintenance$250
Mortgage (P+I)$1,597
Total monthly outflow$2,449

Appreciation Scenarios

3% annual appreciation
5-year value$347,782
5-year equity$121,866
10-year value$403,175
10-year equity$197,225
30-year value$728,179
10-yr total return$77,210
Annualized (10yr)7.8%
5% annual appreciation
5-year value$382,884
5-year equity$156,969
10-year value$488,668
10-year equity$282,719
30-year value$1,296,583
10-yr total return$162,704
Annualized (10yr)12.9%
1

Gross monthly rent

Market rent per month

Monthly rent = $2,200

= $2,200

2

Vacancy loss

Gross rent × vacancy rate

$2,200 × 8.0% = $176

= $176

Historical average: 5–10% for residential rentals

3

Effective rent (net of vacancy)

Gross rent − vacancy loss

$2,200 − $176 = $2,024

= $2,024

4

Monthly mortgage payment (P+I)

P × [r(1+r)ⁿ] / [(1+r)ⁿ−1]

Loan = $240,000, rate = 7.0%, term = 30 yr → $1,597/mo

= $1,597

Principal & interest only — does not include taxes/insurance (calculated separately)

5

Operating expenses (excl. mortgage)

Taxes + insurance + management + maintenance + HOA

$300 + $100 + $202 + $250 + $0 = $852

= $852

6

Net monthly cash flow

Effective rent − operating expenses − mortgage

$2,024 − $852 − $1,597 = -$425

= -$425

Negative cash flow — you pay out of pocket each month. Appreciation and equity buildup must justify this.

7

Cap rate

NOI ÷ purchase price × 100

$14,059 NOI ÷ $300,000 = 4.7%

= 4.7%

Target: 5–8% for residential. Cap rate ignores financing — pure property return.

8

Cash-on-cash return

Annual cash flow ÷ total cash invested × 100

-$5,102 ÷ $69,000 = -7.4%

= -7.4%

Total cash invested = down payment + ~3% closing costs

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