How the Rental Property Calculator works
Estimate rental property income, expenses and cash flow. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this rental property calculator to combine purchase price, financing, rent and operating expenses into a single estimate. It is helpful for screening a property before doing deeper due diligence.
Formula
Cash flow = monthly rent - monthly operating expenses - estimated mortgage payment
- Purchase price and down payment estimate the mortgage amount.
- Rate and amortization estimate the mortgage payment.
- Rent and operating expenses estimate monthly property income before taxes.
Worked example
For a $550,000 rental with $110,000 down, 5.5% mortgage rate, $3,200 rent and $850 expenses, the calculator estimates mortgage payment and cash flow.
Common mistakes
- Using seller-provided rent assumptions without checking market rents.
- Leaving out repairs, vacancy, utilities or condo fees where applicable.
- Assuming appreciation will make up for weak monthly numbers.
FAQs
Is this enough to decide on a rental purchase?
No. It is a screening tool. Review leases, expenses, inspections, financing and taxes before buying.
What expenses should I include?
Include property tax, insurance, repairs, maintenance, management, utilities and any fees you expect to pay.
Does this calculate ROI?
It focuses on mortgage payment and cash flow. Use the real estate ROI calculator for return estimates.