Rental Property Calculator

Estimate rental cash flow, capitalization rate and cash-on-cash return before income taxes.

Annual cash flow before income tax$4,360.00
USD

0.01 – 10000000000

USD

0.01 – 10000000000

USD

0 – 10000000000

%

0 – 100

USD

0 – 10000000000

USD

0 – 10000000000

Annual cash flow before income tax

$4,360.00

  • Effective annual rental income$27,360.00
  • Net operating income$18,360.00
  • Capitalization rate6.12%
  • Cash-on-cash return5.81%

Exclude financing from operating expenses to avoid double counting. Appreciation, depreciation deductions, resale costs and income taxes are not included.

How this was calculated

Effective rent = monthly rent × 12 × (1 − vacancy allowance).

NOI = effective rent − operating expenses; exclude loan payments from operating expenses.

Cash flow = NOI − loan payments.

How rental property is calculated

Net operating income equals collected rent after vacancy minus operating expenses, excluding financing. Cap rate divides NOI by price. Subtract loan payments from NOI for cash flow, then divide by cash invested for cash-on-cash return.

Worked example

$2,400 monthly rent with 5% vacancy produces $27,360 annual rent. Subtract $9,000 operating expenses and $14,000 debt service for $4,360 pre-tax annual cash flow.

References

Frequently asked questions

Should mortgage payments be included in operating expenses?

No. Enter financing payments in the separate loan-payment field. Including them in both places would understate NOI and count the same outflow twice.

Last updated . Results are estimates for informational purposes only.