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Online Rental Property Calculator
Calculate key financial metrics of rental properties including Net Operating Income, Cap Rate, Cash Flow, and Cash-on-Cash Return using this easy-to-use online tool designed for real estate investors.
Result
| Return (IRR) | 16.19% |
|---|---|
| Total Profit when Sold ($) | 523,547.85 |
| Cash on Cash Return | 918.5% |
| Capitalization Rate | 7.03% |
| Total Rental Income ($) | 673,908.99 |
| Total Mortgage Payments ($) | 287,784.00 |
| Total Expenses ($) | 201,527.81 |
| Total Net Operating Income ($) | 472,381.18 |
Mortgage
Vacancy
Management
Property Tax
Insurance
HOA
Maintenance
Other Costs
| FIRST YEAR INCOME AND EXPENSE | ||
|---|---|---|
| MONTHLY ($) | ANNUAL ($) | |
| Income | 2,200.00 | 26,400.00 |
| Mortgage Pay | 1,199.10 | 14,389.20 |
| Vacancy | 110.00 | 1,320.00 |
| Management Fee | 0.00 | 0.00 |
| Property Tax | 250.00 | 3,000.00 |
| Total Insurance | 125.00 | 1,500.00 |
| HOA | 0.00 | 0.00 |
| Maintenance Cost | 208.33 | 2,500.00 |
| Other Costs | 41.67 | 500.00 |
| Cash Flow | 265.90 | 3,190.80 |
| Net Operating Income (NOI) | 1,465.00 | 17,580.00 |
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What Is This Tool?
This online Rental Property Calculator helps investors analyze the financial performance of rental properties by calculating important metrics such as Net Operating Income (NOI), Cap Rate, Cash Flow, and Cash-on-Cash Return based on user-provided inputs.
How to Use This Tool?
- Enter the total gross rental income before expenses
- Input operating expenses including maintenance, taxes, and insurance
- Provide the purchase price of the rental property
- Fill in annual mortgage payment amounts as debt service
- Enter total cash invested such as down payment and initial costs
- Click calculate to obtain NOI, Cap Rate, Cash Flow, and Cash-on-Cash Return
Key Features
- Calculates Net Operating Income (NOI) from gross rental income and operating expenses
- Determines Cap Rate to assess return relative to property price
- Computes Cash Flow after deducting annual debt service
- Calculates Cash-on-Cash Return based on cash invested in the property
- Simple and fast browser-based interface for quick financial insights
- Uses precise arithmetic and percentage formulas for accurate results
Examples
- Given Gross Rental Income of $24,000 and Operating Expenses of $9,000, NOI is 24,000 minus 9,000, resulting in 15,000.
- With a property price of $200,000 and NOI of 15,000, the Cap Rate equals (15,000 ÷ 200,000) × 100, which is 7.5%.
- If annual mortgage payments total $12,000, Cash Flow equals NOI minus debt service: 15,000 minus 12,000 equals 3,000.
- For a total cash investment of $50,000 and annual cash flow of $3,000, Cash-on-Cash Return is (3,000 ÷ 50,000) × 100, resulting in 6%.
Common Use Cases
- Evaluating profitability of rental properties before purchase
- Comparing different investment opportunities in real estate
- Assisting landlords and property managers in financial planning
- Supporting financial analysts in property performance reviews
Tips & Best Practices
- Ensure all income and expense values are accurate and up to date
- Include all relevant operating expenses for precise NOI calculation
- Use the total cash invested including all upfront costs
- Review the results alongside market trends and property conditions
- Double-check inputs to avoid calculation errors
Limitations
- Does not consider market appreciation or property value changes
- Excludes potential vacancy or rental income fluctuations
- Does not account for tax benefits like depreciation
- Ignores unexpected repair or maintenance costs
Frequently Asked Questions
- What is Net Operating Income (NOI)?
- NOI is the income from the property after subtracting operating expenses from gross rental income.
- How is Cap Rate calculated?
- Cap Rate is calculated by dividing NOI by the property price, then multiplying by 100 to get a percentage.
- What does Cash-on-Cash Return represent?
- Cash-on-Cash Return measures the annual cash flow as a percentage of the total cash invested in the property.
- Can this tool predict property appreciation?
- No, the calculator does not factor in market appreciation or future changes in property value.
Key Terminology
- Gross Rental Income
- The total income from rent before deducting any expenses.
- Operating Expenses
- Costs related to property maintenance, management, taxes, and insurance.
- Net Operating Income (NOI)
- Income remaining after subtracting operating expenses from gross rental income.
- Property Price
- The purchase cost of the rental property.
- Annual Debt Service
- Total mortgage payments made annually for the property.
- Total Cash Invested
- Sum of down payment, closing costs, and initial repairs invested in the property.
- Cash Flow
- Profit remaining after paying annual debt service.
- Cap Rate
- Return on investment based on the property's market value.
- Cash-on-Cash Return
- Return percentage based on actual cash invested in the property.