This comprehensive calculator helps you determine whether investing in a rental property makes financial sense. By analyzing cash flow, return on investment, and long-term profitability, you can make informed decisions about real estate investments before committing your capital.
Measures the property's return potential independent of financing. A higher cap rate (typically 5-10%) indicates better returns. Calculated as: Net Operating Income ÷ Property Price × 100.
Shows your first-year return on actual cash invested. Good rental properties typically achieve 8-12% annually. Calculated as: Annual Cash Flow ÷ Total Investment × 100.
Measures ability to cover mortgage payments. Lenders require minimum 1.2 (property generates 20% more income than debt payments). Below 1.0 means negative cash flow.
Your complete return over the holding period, including cash flow, appreciation, and equity buildup. This shows the big picture of your investment performance.
Enter property details to see investment summary
Enter property details to see amortization schedule
Enter property details to see cash flow analysis
Enter property details to compare against alternative investments