What is a good cash-on-cash return for rental property?

A good cash-on-cash return is typically 8-12% or higher. However, this varies by market and investment strategy. Some investors accept lower returns in appreciating markets, while others target 15%+ in cash flow markets.

What is cap rate and how is it calculated?

Cap rate (capitalization rate) is Net Operating Income divided by property value. It measures the property's return independent of financing. A 5-10% cap rate is common, with higher rates indicating higher risk/reward.

What expenses should I include for rental property?

Include mortgage payment, property taxes, insurance, HOA fees, property management (8-10%), maintenance (5-10% of rent), vacancy allowance (5-10%), utilities if paid by owner, and any other recurring costs.

Investment Property Cash Flow Calculator

Analyze rental property profitability with cash flow, cap rate, and ROI metrics.

Rental Property Cash Flow Analysis

Enter property details to calculate your investment returns

Property Details

Purchase Price ($) Property purchase price

Down Payment (%) Percentage of purchase price

Closing Costs ($) Fees, title, escrow, etc.

Renovation/Repairs ($) Initial repairs needed

Loan Details

Interest Rate (%) Annual interest rate

Loan Term (Years) Mortgage term length

Rental Income

Monthly Rent ($) Expected monthly rental income

Other Monthly Income ($) Parking, laundry, storage, etc.

Operating Expenses

Property Tax ($/year) Annual property tax

Insurance ($/year) Annual insurance premium

HOA/Condo Fees ($/month) Monthly association fees

Property Management (%) % of rent for management

Maintenance (%) % of rent for repairs

Vacancy Rate (%) Expected vacancy percentage

Utilities ($/month) If paid by owner

Other Expenses ($/month) Lawn care, pest control, etc.

Investment Analysis

Monthly Cash Flow

Per month

Cash on Cash Return

Annual ROI on cash invested

Cap Rate

NOI / Property Value

Annual Cash Flow

Per year

Key Investment Metrics

Total Investment

Cash needed upfront

Loan Amount

Mortgage principal

NOI (Annual)

Net Operating Income

DSCR

0.00

Debt Service Coverage

Cash Flow Breakdown

Gross Income

Total Expenses

Cash Flow

+ Monthly Income

Rental Income $0

Other Income $0

Less: Vacancy -$0

Effective Income $0

- Monthly Expenses

Mortgage (P&I) $0

Property Tax $0

Insurance $0

HOA Fees $0

Property Management $0

Maintenance $0

Utilities $0

Other $0

Total Expenses $0

Expense Distribution

Mortgage

Tax & Insurance

Management

Maintenance

Other

Return Metrics

Cash-on-Cash Return 0%

0% 5% 10% 15% 20%+

Cap Rate 0%

0% 3% 6% 9% 12%+

Investment Summary

Down Payment

Closing + Renovation

Monthly Mortgage

5-Year Projection

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Year	Annual Income	Annual Expenses	Cash Flow	Cumulative CF	CoC Return

Understanding Rental Property Returns

What is Cash Flow?

Cash flow is the money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and management fees. Positive cash flow means the property pays for itself plus generates profit.

Cash-on-Cash Return

Annual cash flow divided by total cash invested
Measures return on your actual cash investment
8-12% is typically considered good
Higher in cash flow markets, lower in appreciation markets

Cap Rate Explained

Net Operating Income / Property Value
Ignores financing - measures property's raw return
5-10% is common range
Higher cap = higher yield but often more risk

Investment Tips

Use conservative rent and expense estimates
Always budget for vacancy (5-10%)
Include property management even if self-managing
Factor in capital expenditures (roof, HVAC, etc.)