Rental Property ROI Calculator
Analyze a rental property investment with this comprehensive ROI calculator. Enter your property price, financing details, expected rent, vacancy rate, and expenses to see monthly cash flow, annual returns, cash-on-cash return, and cap rate all in one place.
Rental Property ROI Calculator
FAQ
What expenses should I include in annual operating expenses?
Include property taxes, insurance, property management fees, maintenance and repairs, HOA fees, landscaping, and any other recurring costs. Do not include mortgage payments as those are calculated separately based on your financing inputs.
What vacancy rate should I use?
A 5-10% vacancy rate is typical for residential rentals. In high-demand markets, you might use 3-5%. For short-term rentals or in markets with high turnover, consider 10-20%. Check local vacancy rates for your specific area.
What is the difference between cash flow and ROI?
Cash flow is the dollar amount left after all expenses and mortgage payments. ROI (measured via cash-on-cash return) is the percentage return on the cash you invested. A property can have positive cash flow but a low ROI if you invested a large down payment.