Rental Property ROI Calculator

Most investors target 8–12% cash-on-cash return, though this varies by market and strategy. Markets with lower purchase prices relative to rents (strong price-to-rent ratios) tend to deliver higher cash-on-cash returns. Use the calculator above to model your specific scenario.

Rental property ROI combines annual cash flow (rent minus all expenses) plus equity gains (principal paydown + appreciation), divided by your total cash invested (down payment + closing costs). This calculator computes all of these automatically based on your inputs.

Cash-on-cash return measures only your annual pre-tax cash flow divided by total cash invested — it shows how hard your actual dollars are working. Total ROI includes equity buildup and appreciation as well, giving a fuller picture of wealth creation over time.

A complete calculation should include: mortgage payment (principal + interest), property taxes, insurance, HOA fees, maintenance/repairs (typically 1–2% of property value annually), property management (8–12% of rent), and vacancy allowance (5–10% of rent).

Most lenders require 15–25% down for investment properties. A larger down payment reduces your monthly mortgage and increases cash flow, but it also lowers your leverage and cash-on-cash return. Use the calculator to compare different down payment scenarios.

The 1% rule suggests a rental property is worth investigating if the monthly rent equals at least 1% of the purchase price (e.g., $3,000/month rent on a $300,000 property). While useful as a quick screen, it doesn't account for expenses, financing, or appreciation — this calculator provides a much more accurate analysis.

Yes — this rental property ROI calculator is completely free with no signup required. For property-specific calculations using real listing data and automated rent estimates, try our full Property Insight tool.