Loading...
Analyze rental property investments with our comprehensive calculator. Calculate ROI, cash flow, cap rate, cash-on-cash return, and more. Get detailed projections and investment analysis instantly.
Weak metrics suggest high risk. Carefully evaluate before proceeding.
A real estate investment calculator is a comprehensive financial tool designed to help property investors analyze potential rental property investments before making purchase decisions. It calculates critical metrics including return on investment (ROI), cash flow, capitalization rate (cap rate), cash-on-cash return, and net operating income (NOI).
This calculator factors in all aspects of property investment: purchase price, down payment, mortgage terms, rental income, operating expenses, vacancy rates, property management fees, appreciation, and holding period. It provides both current analysis and long-term projections to help you make informed investment decisions.
Whether you're a first-time investor or experienced real estate professional, this calculator helps you evaluate property deals, compare investment opportunities, and understand the true profitability of rental properties before committing your capital.
Input property price, down payment percentage, interest rate, loan term, and closing costs.
Enter expected monthly rent, other income sources, vacancy rate, and annual rent increase projections.
Include property tax, insurance, HOA fees, maintenance, property management fees, and utilities.
Review key metrics, cash flow projections, and investment grade rating across multiple tabs.
Capitalization rate measures property profitability. Formula: (NOI ÷ Property Price) × 100
Good: 5-10%
Annual return on actual cash invested. Formula: (Annual Cash Flow ÷ Total Investment) × 100
Good: 8-12%
Total rental income vs property price. Formula: (Annual Rent ÷ Property Price) × 100
Good: 6-12%
Rental income after expenses. Formula: (NOI ÷ Property Price) × 100
Good: 4-8%
Debt Service Coverage Ratio. Formula: NOI ÷ Annual Debt Service
Good: 1.25-1.5x
Gross Rent Multiplier. Formula: Property Price ÷ Annual Rent
Good: 4-7
Cap rate is the rate of return on a real estate investment based on the income it generates. It's calculated by dividing Net Operating Income (NOI) by the property's current market value.
Cap Rate = (NOI ÷ Property Price) × 100
Interpretation:
Higher cap rate = Better investment
Cash flow is the net income from a rental property after all operating expenses and mortgage payments have been deducted from rental income.
Cash Flow = Income - All Expenses
Target Cash Flow:
Positive cash flow is essential
Comprehensive overview of all key investment metrics including cap rate, cash-on-cash return, DSCR, GRM, rental yields, and investment grade rating.
Detailed breakdown of monthly and annual income, expenses, and net operating income with 5-year projections.
Year-by-year projections showing property value appreciation, equity buildup, cumulative cash flow, and exit strategy analysis.
Compare your property metrics against industry standards with automatic strengths/weaknesses identification and recommendations.
Add down payment + closing costs + renovation costs. This is your initial cash outlay.
Calculate total annual rental income including rent and any other income sources.
Deduct mortgage, taxes, insurance, maintenance, management fees, and vacancies.
Annual Income - Annual Expenses = Annual Cash Flow (positive or negative).
Annual Cash Flow × Number of Years = Total Cash Flow over holding period.
(Total Cash Flow ÷ Total Investment) × 100 = ROI%. Compare to other investments.
NOI: $42,000 / Year
$42,000 ÷ $500,000 × 100
8.4%
✅ Excellent Cap Rate
Annual Cash Flow: $8,400
$8,400 ÷ $110,000 × 100
7.6%
✅ Good Return
This property shows strong investment potential with an 8.4% cap rate (excellent) and 7.6% cash-on-cash return (good). The $700 monthly positive cash flow provides steady income, while the property appreciates over time. With a total investment of $110,000, this property generates $8,400 annually, making it a solid rental investment.
Study local rental rates, vacancy rates, and property appreciation trends before investing.
Target properties that generate at least $200-500 monthly cash flow after all expenses.
Include maintenance, vacancies, management fees, and capital expenditures in your analysis.
Secure financing before making offers to strengthen your negotiating position.
Set aside 1-2% of property value annually for maintenance and unexpected repairs.
Real estate investing is a long-term strategy. Plan to hold properties for 5-10+ years.
This real estate investment calculator is developed by financial technology experts at CalcFinex, designed to provide accurate property investment analysis using industry-standard formulas and methodologies recognized by real estate professionals and financial institutions.
Our calculations are based on established financial principles and guidelines from:
Disclaimer: This calculator provides estimates for educational and informational purposes only. Real estate investments involve risk, and actual results may vary based on market conditions, property specifics, and individual circumstances. Always consult with qualified real estate professionals, financial advisors, and tax experts before making investment decisions.
Comprehensive analysis, cash flow, projections, and comparison tabs
Cap rate, cash-on-cash, DSCR, GRM, yields, and more
See property value, equity, and cash flow over entire holding period
A+/B/C rating with strengths, weaknesses, and recommendations
Unlike basic calculators, we provide professional-grade analysis with exit strategy planning, vacancy rates, management fees, and industry standard comparisons!