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Rental property ROI calculator

Calculate rental cash flow, cap rate, cash-on-cash return, and holding-period ROI with financing and vacancy.

  • USD inputs · transparent calculation assumptions
  • Instant updates as inputs change
  • Data is calculated in this browser only
USD inputs · transparent calculation assumptions

Pre-tax planning estimate. Local taxes, insurance, repairs, vacancy, financing, and sale costs can materially change returns.

Your scenario
Updates as you type
First-year monthly cash flow-$637.62
Net operating income / year
$16,620.00
Annual cash flow
-$7,651.41
Cap rate
4.15%
Cash-on-cash return
-8.5%
Debt-service coverage ratio
0.68
Initial cash invested
$90,000.00
Ending equity before selling costs
$266,282.95
Holding-period profit
$124,098.50
Holding-period ROI
137.89%
Calculation notes

Understand the Rental property ROI calculator

NOI = collected rent − operating expenses, before debt service. Cash-on-cash = annual cash flow / initial cash invested. Holding ROI = (cash flows + ending equity − initial cash) / initial cash. The calculation runs locally and keeps cash-flow timing consistent with the stated assumptions.

Formula and logic

How do I calculate rental property cash-on-cash return and ROI?

NOI = collected rent − operating expenses, before debt service. Cash-on-cash = annual cash flow / initial cash invested. Holding ROI = (cash flows + ending equity − initial cash) / initial cash.

Worked example

What cash is invested in a $400,000 rental with 20% down?

A $400,000 property with $30,000 gross annual rent and 5% vacancy collects $28,500 before expenses. A 20% down payment plus $10,000 closing costs puts initial cash invested at $90,000.

How to read the result

How is cap rate different from cash-on-cash return?

  • Cap rate evaluates unlevered operating income; cash-on-cash reflects debt service and initial cash.
  • A high holding ROI may depend on appreciation rather than positive current cash flow.
Limits and assumptions

Which taxes and selling expenses are excluded from rental ROI?

  • Rent and all operating expenses grow at the entered appreciation rate. Sale costs, capital-gains tax, depreciation benefits, major repairs, refinance and rent-control rules are excluded.

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