Rental Property ROI Calculator
Calculate comprehensive ROI metrics including Cap Rate, Cash-on-Cash Return, and total return over holding period for rental property investment analysis.
Property & Financing
Income & Expenses
Income & Expenses Summary
Monthly Mortgage:$1516.96
Effective Rent:$25080.00/year
Vacancy Loss:$1320.00/year
Operating Expenses:$9206.40/year
Net Operating Income (NOI)
$15873.60/year
Effective Rent - Operating Expenses (before debt service)
Annual Cash Flow
$-2329.96
Monthly: $-194.16 | NOI - Debt Service
Cap Rate
5.29%
NOI / Purchase Price
Cash-on-Cash Return
-3.88%
Annual Cash Flow / Down Payment
Total ROI over 10 Years
Cash Flow:$-23299.60
Appreciation:$103174.91
Loan Paydown:$36537.30
Future Value:$403174.91
Total Profit:$116412.62
Annualized ROI:11.39%
Investment Rule Checks
1% Rule: Fail
Rent should be ≥ 1% of price ($3000.00)
2% Rule: Fail
Rent should be ≥ 2% of price ($6000.00)
GRM: 11.4 (under 12 is good)
Price / Annual Gross Rent
DSCR: 0.87 (Low)
NOI / Debt Service (≥1.25 preferred)
Break-even Occupancy: 103.8% needed to cover all costs
Key Metrics Explained
- Cap Rate: NOI / Property Value. Measures unlevered return. 5-8% typical, higher for riskier markets.
- Cash-on-Cash: Annual Cash Flow / Cash Invested. Measures levered return on your actual money.
- Total ROI: Includes cash flow, appreciation, and loan paydown over holding period.
- 1% Rule: Rent should equal at least 1% of purchase price for positive cash flow potential.
- DSCR: Debt Service Coverage Ratio. Lenders require ≥1.25 for investment property loans.
- GRM: Gross Rent Multiplier. Lower is better. Under 12 indicates good value in most markets.