Rental Property Calculator: Rent, ROI and Cash Flow

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Rental Property Calculator helps property owners determine return on investment, cap rate, and cash flow for rental properties. Input values include attribute values, monthly income, property costs, and vacancy rates. Investors typically use rental income calculators to assess potential rental properties and determine whether it is a good investment to buy.

Contact Visio Lending to accurately calculate your return on investment. Visio Lending offers rental home loans up to $2 million with 30-year fixed and variable rate options. Fill out the application online and work with the team to get a quote.

How the rental Home Calculator Works

Rental property calculator, also known as rent calculator, works by calculating data such as the present value of the property, mortgage interest rate, loan term and estimated rent. It also includes the amount paid for the property, including down payments, renovations, closing prices, and expected property-related expenses. Enter this number and the Rental Income Calculator will calculate your cash flow, your cap rate, and your return on investment.

The rental property calculator gives you an overview of your return on investment and cash flow so you can decide whether your investment property is an appropriate investment. It can also be used for real estate that you already own and want to value. This article will guide you through how the rental property calculator works. You don’t have to worry if you don’t know all the input numbers, as it gives you average information about inputs that are usually unknown, such as a scrap.

Enter Rental Property Calculator

When using the free rental property calculator, you will be prompted to enter your current property value, cash investment, mortgage interest rate, rent, estimated monthly rent, estimated property cost, and vacancy rate.

Details for each input to the rental property calculator are as follows:

Current Attribute Value

The first input is your current property value, also known as the fair market value at which your property is currently worth. You can find out this by hiring an expert appraiser to file an appraisal report. If you have a residential property, you can use Zillimate on Zillimate, or you can call a real estate agent a CMA (Comparative Market Analysis) for your property.

If you own commercial real estate, you should either hire an appraiser or use a commercial real estate agent Costar or Loopnet to ask the real estate agent to tell you how much the property is worth.

Keep in mind that the current property price is not necessarily the same as the property purchase price. You could already buy the property and its value has fluctuated, or the current owner was able to buy the property a few years ago and it has gone up in value and is now more valuable.

Total Cash Investment in your Rental Property

The next input is the current total cash investment in the property, including the cost of refinancing and the down payment if the property was purchased using the loan. Otherwise, if you use all the cash to buy (or plan to buy) the property, the cash investment will be the purchase price of the property. If you have already purchased the property, you can check it on the HUD 1 Settlement Statement. If the property has not yet been purchased, this will be the amount the seller has agreed to sell it. It’s always beneficial to make an all-cash offer.

The calculator allows you to choose yes or no in response to using a loan to rent a rental property. Then we’ll give you an average figure that auto-populates in case you’re not sure how much your cash investment is. The average down payment for investment properties is 20%.

Mortgage Rate for your Rental Property

Your mortgage interest rate is another input value used in the rental property calculator. That’s the interest rate you agreed to pay on your loan. Check with your lender if your mortgage rate is and you haven’t bought the property yet. This was because there had to be a rate lock with a certain interest rate guaranteed over a period of time, usually 30 to 60 days.

If you have already purchased real estate, the interest rate is applied to the mortgage document. You can also check the investment property rate, which updates the investment property loan rate on a monthly basis. If you are not sure of the current exchange rate, the calculator will use an average fixed interest rate of 5%. 5% is the average interest rate, and future rate hikes for floating rate mortgages are unpredictable. Increased rates can increase total cost and reduce ROI.

Rental Property Mortgage Loan term

The loan term is the loan term. Typical loan terms for rental properties are 15, 20, or 30 years. Our free rental property calculator uses a 15-year term fully amortized loan for calculation (if you are not sure of the exact loan term). However, you can also adjust this period to 20 or 30 years in the rental property calculator. If you have a balloon loan, your cash flow can be better initially because your monthly payments are low at first.

Closing Costs for Rental Properties

The closing price is the cost added to the purchase price and the down payment of the property. Settlement costs include loan fees, such as loan fees. It also includes notary fees, title insurance, title search fees, attorney fees, transfer taxes, and more. The closing price is an average of 2 to 5% of the real estate purchase price. If the closing price is uncertain, the rental income calculator assumes 5% (conservative side).

Estimated Monthly Rent in Rental Property

The estimated monthly rent is very simple. It is the total rental income the property currently has or is expected to bring. It includes rental income from tenants and additional income from parking, nose-aware laundry, vending machines, etc.

Estimated Property Cost of Rental Housing

Your estimated property cost is the monthly cost associated with the property. This includes operating expenses and monthly mortgage payments. Mortgage payments aren’t an operating expense, but they fall into this category as they are one of the biggest monthly expenses and help determine your cash flow and ROI.

Typical operating expenses are:

  • Property Tax : This is a tax on the value of a property set by local authorities. You can call your local tax collection office, ask a real estate agent, or view public records for property taxes. They are usually listed annually, so divide by 12 to apply the monthly rent.
  • Wealth Management Fee : This can vary from 8% to 15%, but uses an average of 10% of the monthly rent collected.
  • Maintenance: This is the amount you spend monthly on maintaining your property. Usually 1% of the value of your property is spent annually, so to calculate your monthly cost, divide that number by 12.
  • Common Area Utilities : A utility that you own and may include electricity in your apartment building hallways or garbage collection.

Vacancy Rate of Rental Housing

Your vacancy rate is the ratio of empty units in the building to all available units. It is only used on properties with more than one unit. For example, if a 10 unit building has 2 vacancy units, the vacancy rate is 2/10 = 20 percent.

Combine all the numbers ahead of time to get the most accurate results using the rental income calculator. Vacancy rates, operating expenses and monthly rental income are in front of you, so you can easily enter the correct number.

Rental Property Calculator Output

Our rental income calculator calculates return on investment (ROI), cash flow and cap rate. It calculates these outputs based on the input you enter into the calculator. These results, also known as deliverables, will help you determine whether your investment property is the right investment for you.

Return on Investment in Rental Housing

The return on investment (ROI) is expressed as a percentage of how much profit you make for your investment property. It measures how well your rental property is performing, and can be a great way to compare different income-producing properties when deciding what to buy or how much to offer.

ROI on investment properties is typically 10% or more. To calculate your ROI, calculate your annual return and divide it by your total cash investment. The calculator is for you. However, if you have any questions, you can calculate your annual income by calculating your total rental income minus your expenses. Then divide this by your total investment. Our calculator calculates ROI over 1, 5, 10, 15 and 30 years, allowing you to do an in-depth analysis of your property over the long term.

Cash flow for your rental property

Cash flow is another important result I found using our free rental property calculator. To figure out your cash flow, the calculator starts with rental income and subtracts operating expenses and mortgage payments. Cash flow is usually calculated on a monthly basis.

When buying investment properties, you usually need assets with good cash flow. This means you can collect all your rent at the end of each month and earn money after paying all expenses. Our rental property ROI calculator shows your monthly and yearly cash flow.

Maternal and Child Fees for Your Rental Property

The cap rate is a rate that helps investors evaluate their real estate investment. The cap rate formula is the net operating income divided by the property price. The cap rate varies by location and type, but generally good cap rates range from 4% to 10% or more. In general, the higher the investment rate, the higher the return on investment, but the more risky the investment.

For more information on how cap rates work and what to use, see our in-depth cap rate guide, which shows you how to calculate cap rates.

Who Is Right For The Rental Income Calculator

Rental Property ROI Calculator should be used by real estate investors who want an easy solution to find out if rental property is a good investment. It is typically used to assess purchase opportunities and to retain investment properties that you already have.
It’s generally suitable for long-term investors who just push a few buttons and need long-term cash flow and ROI calculations. Most investors use rental property cash flow calculators before deciding whether to buy an investment property. However, other investors use it to determine if they should hold or sell their current investment assets.

Specifically, the rental property ROI calculator is suitable for:

  • Duplex, Triplex and other multigenerational property investors
  • Apartment investor
  • Single family investor
  • The landlord who will manage the property himself
  • Investors who can sell real estate to give potential buyers all the figures on the asset, such as cash flow

“I own several rental homes and I’m using a rental property calculator. I wish I had when I bought my stuff. During my first rental experience, I didn’t correctly specify the payment dates for rent and utilities. So taxes and utilities. I had to lay out a lot of money for my business, and I drastically cut my costs every month in the year. The rental property calculator will help you calculate ROI and cash flow based on operating expenses like taxes and utilities.”

-Brad Biren, Attorney, Johnston Martineau

Who Doesn’t fit the Rental Income Calculator

Rental income calculators are generally not suitable for refurbished investors who want to buy real estate for the purpose of buying it and sell it for a profit. This type of short-term investor usually does not care about rental income or monthly cash flow. Instead, we value ROI by selling ARV (Value After Repair) and ROI as quickly as possible.


The rental property cash flow calculator is used by investors to determine if a rental property is a good investment based on the property’s potential cash flow, ROI and cap rate. This rental property cash flow calculator takes inputs such as current property value, down payment and loan term, and provides outputs such as ROI, cash flow and cap rate

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