Rental Property ROI Calculator
Rental property NOI, cap rate, mortgage payment, annual cash flow, cash-on-cash return and year-one total ROI with principal paydown, from your own entries.
Interactive calculator · Method RENTAL-PROPERTY-ROI-1.0 · Last reviewed: 2026-11-04
Calculate your scenario
Collected rent = monthly rent × 12 × (1 − vacancy %).
Your inputs
How to use the calculator
Enter the price, down payment %, cash closing and rehab costs, loan terms, monthly rent, a vacancy assumption and each operating expense. Leave appreciation at 0 unless you want to see it in the total ROI.
What the result means
At $2,500 rent on a $300,000 purchase with 25% down at 7%, NOI is $18,555 (a 6.19% cap rate) but the loan payment takes most of it, leaving about $592 a year: a 0.65% cash-on-cash return, or about 3.16% including year-1 principal paydown.
Formula and units
Collected rent = monthly rent × 12 × (1 − vacancy %). NOI = collected rent − (taxes + insurance + other) × 12 − collected rent × (maintenance % + management %). Cap rate = NOI ÷ purchase price. Loan = price × (1 − down %); monthly payment M = L·r ÷ (1 − (1 + r)^−n) with r = rate ÷ 12 and n = term × 12 (M = L ÷ n at 0%). Cash flow = NOI − 12M. Cash invested = down payment + closing + rehab. Cash-on-cash = cash flow ÷ cash invested. Year-1 total ROI = (cash flow + first-year principal paydown + price × appreciation %) ÷ cash invested.
Worked examples
$300,000 duplex with $2,500 rent, 25% down at 7%: Purchase price: 300000 USD; Down payment: 25 % of price; Closing costs paid in cash: 6000 USD; Rehab costs paid in cash: 10000 USD; Loan interest rate (example): 7 % APR; Loan term: 30 years; Monthly rent (all units): 2500 USD per month; Vacancy and credit loss (assumption): 5 % of rent; Property taxes: 300 USD per month; Insurance: 120 USD per month; Maintenance and repairs: 5 % of collected rent; Property management: 8 % of collected rent; Other operating costs (HOA, utilities): 100 USD per month; Appreciation assumption (optional): 0 % of price per year.
Example result: Cash-on-cash return: 0.65%; Annual cash flow: $591.83; Net operating income (NOI): $18,555.00; Cap rate: 6.19%; Cash invested: $91,000.00; Year-1 total ROI: 3.16%.
$180,000 house with $1,900 rent, 20% down, 3% appreciation: Purchase price: 180000 USD; Down payment: 20 % of price; Closing costs paid in cash: 4000 USD; Rehab costs paid in cash: 0 USD; Loan interest rate (example): 6.5 % APR; Loan term: 30 years; Monthly rent (all units): 1900 USD per month; Vacancy and credit loss (assumption): 6 % of rent; Property taxes: 200 USD per month; Insurance: 90 USD per month; Maintenance and repairs: 6 % of collected rent; Property management: 10 % of collected rent; Other operating costs (HOA, utilities): 0 USD per month; Appreciation assumption (optional): 3 % of price per year.
Example result: Cash-on-cash return: 9%; Annual cash flow: $3,600.74; Net operating income (NOI): $14,522.88; Cap rate: 8.07%; Cash invested: $40,000.00; Year-1 total ROI: 26.53%.
Limitations and common mistakes
All rents, vacancy, expenses, rates and appreciation are your entries; nothing here forecasts rents, vacancies, property values or taxes. Income tax, depreciation, capital expenditures beyond the maintenance %, refinancing, selling costs and loan fees beyond closing costs are not modeled. Cap rate uses the purchase price, not the price plus rehab.
Leaving out vacancy, maintenance and management makes NOI and cash-on-cash look far better than a property usually performs.
Sources and assumptions
Method RENTAL-PROPERTY-ROI-1.0; last formula review 2026-11-04. Sources and their supported claims. Calculation methodology.