Rental Property Calculator | Cash Flow, ROI, Cap Rate & DSCR | Lofty
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Rental Property Calculator
Run a complete rental property cash flow analysis: monthly cash flow, ROI, cap rate, cash-on-cash return, DSCR, the 1% rule, break-even occupancy, and a year-by-year projection.
Your numbers
Property
- Purchase price
- Closing costs
- Loan, title, inspection, and transaction costs.
- Upfront repairs
Income
- Monthly rent
- Other monthly income (Parking, laundry, pet fees, etc.)
Expenses
- Vacancy rate% (BiggerPockets recommends 8–10% as conservative)
- Monthly operating expenses (Taxes, insurance, repairs, HOA, utilities, and CapEx reserves)
- Property management% (8–12% of rent is typical. Set to 0% if self-managed.)
Financing
- Down payment% = $62,500 cash
- Interest rate%
- Loan term yrs
Long-term assumptions
Overview
What is a rental property calculator?
A rental property calculator estimates a property's monthly cash flow, ROI, cap rate, cash-on-cash return, and long-term return from purchase price, rent, financing, vacancy, and operating expenses. Investors use it to compare properties, estimate rental income, and avoid negative cash flow.
What your scenario is telling you
Healthy monthly cash flow
Estimated monthly cash flow is $286, leaving room to absorb a vacancy or repair.
Lender-friendly DSCR
DSCR of 1.23x clears the typical 1.20x to 1.25x DSCR-loan threshold.
Passes the 1% rule
Monthly rent is 1.02% of purchase price, clearing the classic 1% screen.
Cash flow, equity, and ROI over time
| Year | Gross income | Op. expenses | NOI | Cash flow | Property value | Loan balance | Equity | Cum. ROI |
|---|---|---|---|---|---|---|---|---|
| 1 | $30,600 | $9,752 | $18,400 | $3,431 | $257,500 | $185,595 | $71,905 | -17.4% |
| 2 | $31,518 | $10,007 | $18,989 | $4,020 | $265,225 | $183,553 | $81,672 | 1.0% |
| 3 | $32,464 | $10,269 | $19,597 | $4,628 | $273,182 | $181,363 | $91,819 | 20.7% |
| 4 | $33,437 | $10,538 | $20,225 | $5,255 | $281,377 | $179,015 | $102,362 | 41.8% |
| 5 | $34,441 | $10,813 | $20,872 | $5,903 | $289,819 | $176,497 | $113,322 | 64.4% |
| 6 | $35,474 | $11,096 | $21,539 | $6,570 | $298,513 | $173,797 | $124,716 | 88.4% |
| 7 | $36,538 | $11,387 | $22,228 | $7,259 | $307,468 | $170,901 | $136,567 | 114.0% |
| 8 | $37,634 | $11,685 | $22,938 | $7,969 | $316,693 | $167,797 | $148,896 | 141.3% |
| 9 | $38,763 | $11,991 | $23,671 | $8,702 | $326,193 | $164,468 | $161,725 | 170.2% |
| 10 | $39,926 | $12,305 | $24,427 | $9,458 | $335,979 | $160,898 | $175,081 | 200.9% |
| 11 | $41,124 | $12,627 | $25,207 | $10,237 | $346,058 | $157,071 | $188,988 | 233.3% |
| 12 | $42,358 | $12,958 | $26,011 | $11,041 | $356,440 | $152,966 | $203,474 | 267.7% |
| 13 | $43,628 | $13,298 | $26,840 | $11,871 | $367,133 | $148,565 | $218,568 | 304.0% |
| 14 | $44,937 | $13,646 | $27,696 | $12,727 | $378,147 | $143,846 | $234,302 | 342.3% |
| 15 | $46,285 | $14,004 | $28,579 | $13,609 | $389,492 | $138,785 | $250,706 | 382.8% |
How investors usually read these numbers
| Metric | Often strong | Watch out | Why it matters |
|---|---|---|---|
| Cash-on-cash return | 8% to 12%+ | Below 5% | Shows annual cash flow compared with the cash you actually invested. |
| Cap rate | 6% to 8%+ | Below local borrowing costs | Compares property income before debt across markets and property types. |
| DSCR | 1.25x or higher | Below 1.0x | Shows whether NOI covers annual debt service with a cushion. |
| 1% rule | Near or above 1.0% | Below 0.6% | Quickly compares monthly rent to purchase price before deeper underwriting. |
| Break-even occupancy | 15+ points below expected occupancy | Near expected occupancy | Estimates how much rent income can fall before the property stops cash flowing. |
How to run a rental property analysis
- Enter property details
Fill in purchase price, closing costs, and any upfront repairs you expect to fund out of pocket. - Add rental income
Set the monthly rent based on local comps, plus any other income such as parking or pet fees. - Estimate operating expenses
Include vacancy, taxes, insurance, HOA dues, repairs, reserves, and property management. - Set financing terms
Enter down payment, interest rate, and loan term. Investment-property loans usually need 20% to 25% down. - Add long-term assumptions
Choose rent growth, expense growth, appreciation, hold period, and selling costs to model the 30-year projection. - Read the snapshot and projection
Review monthly cash flow, ROI, cap rate, cash-on-cash return, DSCR, the 1% rule, break-even occupancy, and the year-by-year table.
The math behind the result
Core formulas
- Effective rent = monthly rent x (1 - vacancy rate).
- Monthly cash flow = effective rent + other income - operating expenses - property management - mortgage payment.
- Cap rate = annual NOI / purchase price.
- Cash-on-cash return = annual cash flow / cash invested (down payment + closing + repairs).
- DSCR = annual NOI / annual debt service. Lenders typically want at least 1.20x to 1.25x.
- 1% rule = monthly rent / purchase price. A quick screen, not a verdict.
Expert takeaways
- Use cap rate to compare properties without financing noise. Use cash-on-cash return to test your actual leverage.
- Check DSCR before you fall in love with a deal. A property can have a strong cap rate and still struggle to cover debt.
- The 1% rule is a screen, not a rule. A deal under 1% can still work in high-appreciation markets if cash flow holds.
- Stress-test rent and vacancy together. Rents can stay flat while taxes, insurance, and maintenance keep climbing.
Key terms in plain English
- Cap rate: Annual NOI / purchase price. Capitalization rate measures the unleveraged yield of a rental property.
- NOI: Net operating income equals gross rent minus vacancy and operating expenses.
- Cash-on-cash return: Annual cash flow divided by cash invested.
- DSCR: NOI divided by annual debt service.
- 1% rule: Monthly rent should be at least 1% of a property's purchase price.
People also ask
- What is a rental property calculator?
A rental property calculator is a tool that estimates a rental property's monthly cash flow, ROI, cap rate, cash-on-cash return, DSCR, and long-term return from purchase price, rent, financing, vacancy, and operating expenses. - How do you estimate rental property cash flow?
Start with gross monthly rent, subtract a vacancy allowance, then subtract operating expenses, property management, reserves, and the mortgage payment. - How do you calculate ROI on a rental property?
For a financed rental, ROI is usually measured as cash-on-cash return: annual cash flow divided by upfront cash invested. - What is a good ROI for rental property?
A good rental property ROI depends on the market, leverage, and risk. - What is a good cap rate for a rental property?
A "good" cap rate depends on the market, but many U.S. residential investors target 6% to 8% in Class B and C markets.