About This Calculator

Last updated: July 2026

RentalROICalc is a free, independent tool for analyzing a rental property's cash flow, cap rate, cash-on-cash return, and gross rent multiplier before making a purchase decision. It is not affiliated with any lender, brokerage, property management company, or real estate portal — it exists to give investors a quick, transparent way to stress-test a deal using their own numbers.

How the Calculation Works

The tool computes Net Operating Income by subtracting standard operating expenses — vacancy loss, property tax, insurance, HOA, maintenance, and management fees — from gross rental income, then derives cap rate from that figure independent of financing. Cash-on-cash return is calculated separately by dividing annual pre-tax cash flow (after mortgage payments) by total cash invested, including down payment, closing costs, and rehab budget. The mortgage payment itself uses a standard amortization formula based on the loan amount, rate, and term you enter.

What This Calculator Does Not Do

It does not account for income tax treatment, depreciation, 1031 exchanges, capital gains on sale, appreciation projections, or property-specific capital expenditure timing (roof, HVAC replacement cycles). All expense inputs — vacancy rate, maintenance percentage, management fee — are estimates you provide; the tool does not verify them against your specific market or property condition. Every result is a planning estimate, not a substitute for a licensed appraisal, a CPA's tax projection, or a lender's underwriting.

No Affiliation

This site is not connected to any lender, real estate brokerage, property management firm, or listing service. For financing terms, consult a mortgage lender; for tax treatment of rental income, consult a CPA; for a professional opinion on a specific property, consult a licensed real estate agent or appraiser.

Contact

Questions or corrections? Reach out via the contact details on the privacy page.