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Calculator Description
Enter Purchase price ($), Down payment (%) and Interest rate (%) and the remaining scenario settings to review total roi with this tool. Rent remaining after expenses and debt service is cash flow.
Estimate five-year rental cash flow and a terminal sale scenario for a financed property. Separate annual operating performance from the eventual return of equity.
Rent remaining after expenses and debt service is cash flow. Sale proceeds after selling costs and outstanding debt contribute separately to the modeled return.
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Frequently Asked Questions
What information do I need for the Rental Property Calculator?
Prepare Purchase price ($), Down payment (%), Interest rate (%), Loan term (years), Monthly rent ($), Property tax rate (%), Insurance ($/year), Vacancy rate (%), Management fee (%), Maintenance (%), Appreciation (%/year) and Selling costs (%). Check rent and operating costs first, then inspect selling costs and remaining debt before interpreting five-year ROI.
Why can a property have positive ROI and negative monthly cash flow?
Rent remaining after expenses and debt service is cash flow. Sale proceeds after selling costs and outstanding debt contribute separately to the modeled return. The fixed five-year model excludes tax and depreciation benefits. Vacancy, major repairs, financing changes and sale timing can alter real returns.
How can I check the rental property calculator with an example?
Use the full settings in the worked-example table. They produce Total ROI: 59.1%; Cash Flow: -113. Compare the method and units as well as the displayed number.
Which assumptions apply to this rental property calculator?
Fixed five-year holding model; entered selling costs reduce terminal proceeds. No tax or depreciation benefits are modeled. Check rent and operating costs first, then inspect selling costs and remaining debt before interpreting five-year ROI.
When should I verify the rental property calculator result elsewhere?
The fixed five-year model excludes tax and depreciation benefits. Vacancy, major repairs, financing changes and sale timing can alter real returns. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
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How to Use This Calculator
- Check rent and operating costs first, then inspect selling costs and remaining debt before interpreting five-year ROI.
- Fill in Purchase price ($), Down payment (%), Interest rate (%) and Loan term (years); then complete the other fields shown for your selected mode. Use the field units rather than copying an unlabeled value.
- For a result check, reproduce the example beginning with Purchase price ($) = 300000 and Down payment (%) = 20; copy the remaining settings from the detailed guide.
- Use the page's Calculate or Convert control, or read the updated result where the tool recalculates automatically. Locate Total ROI and any supporting breakdown.
- Interpret the result with this distinction in mind: Rent remaining after expenses and debt service is cash flow. Keep the selected inputs alongside the output when comparing scenarios.
Practical example and result check
Worked rental property calculator example. Set Purchase price ($) = 300000; Down payment (%) = 20; Interest rate (%) = 6.5; Loan term (years) = 30 years; Monthly rent ($) = 2200; Property tax rate (%) = 1.2; Insurance ($/year) = 1200; Vacancy rate (%) = 5; Management fee (%) = 8; Maintenance (%) = 5; Appreciation (%/year) = 3; Selling costs (%) = 6. The corresponding output is Total ROI: 59.1%; Cash Flow: -113. Rent remaining after expenses and debt service is cash flow.
Before relying on the result
- Confirm the units, dates, rates and time periods entered.
- Review which costs, measurements or assumptions are included and excluded.
- Change one important input at a time to understand the result sensitivity.
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Detailed Calculator Guide
Choose the right question for Rental Property Calculator
Estimate five-year rental cash flow and a terminal sale scenario for a financed property. Separate annual operating performance from the eventual return of equity.
Prepare the inputs
Check rent and operating costs first, then inspect selling costs and remaining debt before interpreting five-year ROI.
Rental Property Calculator: worked input settings| Field | Example value | Entry check |
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| Purchase price ($) | 300000 | Use the amount for this scenario in the currency and period shown by the field. |
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| Down payment (%) | 20 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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| Interest rate (%) | 6.5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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| Loan term (years) | 30 years | Use the period unit in the field label; months and years are not interchangeable. |
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| Monthly rent ($) | 2200 | Check whether this amount is one-time, monthly or annual before entering it. |
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| Property tax rate (%) | 1.2 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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| Insurance ($/year) | 1200 | Check whether this amount is one-time, monthly or annual before entering it. |
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| Vacancy rate (%) | 5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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| Management fee (%) | 8 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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| Maintenance (%) | 5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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| Appreciation (%/year) | 3 | Enter the value for this scenario using the field label as the reference. |
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| Selling costs (%) | 6 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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Follow the calculation
Relationship used for this example: Five-year ROI = (five-year cash flow + sale proceeds − remaining mortgage − down payment) / down payment × 100.
Rent remaining after expenses and debt service is cash flow. Sale proceeds after selling costs and outstanding debt contribute separately to the modeled return.
Assumptions for this model: Fixed five-year holding model; entered selling costs reduce terminal proceeds. No tax or depreciation benefits are modeled.
Read the worked result
Results for the worked settings| Output | Displayed result |
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| Total ROI | 59.1% |
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| Cash Flow | -113 |
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With these settings, total roi is 59.1%. Use the same units and calculation mode when reproducing this example.
Why can a property have positive ROI and negative monthly cash flow?
Rent remaining after expenses and debt service is cash flow. Sale proceeds after selling costs and outstanding debt contribute separately to the modeled return. The fixed five-year model excludes tax and depreciation benefits. Vacancy, major repairs, financing changes and sale timing can alter real returns.
Apply the result to your own scenario
Replace the illustrative purchase price ($) value (300000) with your own value, then complete the other inputs for the same scenario. Check rent and operating costs first, then inspect selling costs and remaining debt before interpreting five-year ROI.
