INVESTUSCA / TOOLS / RENTAL PROPERTY CALCULATOR
Rental Property Calculator
Model the path from purchase price and financing to NOI, cash flow, equity growth, IRR, and a clearer 5-year or 10-year return conversation. Request a printable PDF report when you are ready to take the assumptions with you.
LIVE OUTPUT
Rental underwriting engine
Year-one cash flow
-$3,927
Year-one cash-on-cash
-2.81%
Year-one cap rate
4.9%
Year-one DSCR
0.86x
5-year equity growth
$103,596
5-year IRR
4.56%
This base case produces negative year-one cash flow after operating expenses and debt service. Review the assumptions before treating the result as investable.
Initial cash
$140,000
Loan amount
$375,000
Monthly debt
$2,370
RETURN HORIZONS
Includes cumulative cash flow and estimated net sale proceeds.
5-year total return
26.03%
10-year total return
118.55%
View yearly projection ＋
| Year | NOI | Cash flow | Value | Equity |
|---|---|---|---|---|
| 1 | $24,516 | -$3,927 | $515,000 | $144,191 |
| 2 | $25,296 | -$3,147 | $530,450 | $164,114 |
| 3 | $26,101 | -$2,342 | $546,364 | $184,799 |
| 4 | $26,932 | -$1,511 | $562,754 | $206,281 |
| 5 | $27,788 | -$655 | $579,637 | $228,596 |
| 6 | $28,672 | $228 | $597,026 | $251,781 |
| 7 | $29,583 | $1,140 | $614,937 | $275,876 |
| 8 | $30,522 | $2,079 | $633,385 | $300,923 |
| 9 | $31,491 | $3,048 | $652,387 | $326,964 |
| 10 | $32,491 | $4,048 | $671,958 | $354,048 |
REPORT HANDOFF
Take this model with you.
Enter your email to unlock a printable report of the assumptions and outputs above. Basic calculations remain free and visible.
We use this email to process your requested report and may follow up about the request. Marketing updates are separate and optional. See our Privacy Policy.
THE MODEL
A return model is only as useful as its assumptions.
Start with a base case, then change one assumption at a time. A transparent downside case is more useful than a precise-looking output built on hidden optimism.
Reference: OCC real estate lending handbook ↗CALCULATION ORDER
Effective gross income
Potential rent after vacancy and credit loss.
NOI
Effective gross income less operating expenses.
Cash flow
NOI less annual debt service.
Total return
Cumulative cash flow plus net sale proceeds, less initial cash.
ASSUMPTIONS & LIMITATIONS
What is—and is not—in the result
Initial cash invested
Down payment plus closing costs. Reserves, repairs, lender fees, prepaid items, and acquisition cash beyond those inputs are not included.
Debt model
The calculator assumes a fully amortizing fixed-rate loan with monthly payments. It does not model ARMs, interest-only periods, balloon payments, or refinancing.
Operating model
Maintenance and management are percentages of effective gross income. The other listed operating costs grow by the annual expense-growth assumption.
Exit model
Total return includes appreciation, selling costs, loan payoff, and cumulative modeled cash flow. It excludes income taxes, depreciation, and tax benefits.
This educational calculator is not financial, tax, legal, appraisal, lending, or investment advice. Confirm property-specific numbers and professional advice before relying on a decision.
RENTAL PROPERTY CALCULATOR FAQ
Questions investors usually ask next
How does the rental property calculator calculate NOI?
The model calculates effective gross income after vacancy and credit loss, then subtracts operating expenses. Mortgage principal and interest are not included in NOI; they are subtracted afterward to calculate cash flow.
What is DSCR in rental property investing?
Debt service coverage ratio is NOI divided by annual debt service. A result below 1.00x means the modeled NOI does not cover the modeled annual debt service before taxes and other owner-level items.
What does the IRR in this calculator include?
The selected-hold IRR uses the initial cash invested, annual after-debt-service cash flow, and estimated net sale proceeds after selling costs and loan payoff. It does not include income taxes, depreciation, refinancing, or unmodeled capital events.
Does the 5-year or 10-year return include appreciation?
Yes. The model applies the appreciation assumption to the property value and includes the estimated net sale proceeds in the total return. Appreciation is an assumption, not a forecast or guarantee.
NEXT STEP
Put the property inside its market context.
Use the model to test the deal, then compare the market conditions and local risks that sit behind the assumptions.