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Free Rental Property ROI Calculator

Calculate your investment return, cash flow, and cap rate. Make informed decisions about your next rental property.

Purchase Details

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Monthly Income

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Monthly Expenses

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Financing

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Growth Assumptions

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Understanding ROI Metrics

Annual ROI

Total return on investment including cash flow, equity build-up from mortgage paydown, and property appreciation. This gives you the complete picture of your investment performance.

Cash-on-Cash Return

Annual pre-tax cash flow divided by total cash invested. This shows how hard your actual cash is working, excluding appreciation and equity gains.

Cap Rate

Net Operating Income (NOI) divided by property value. Useful for comparing properties regardless of financing. A higher cap rate typically means higher potential returns (and higher risk).

Cash Flow

Money left over after all expenses and mortgage payments. Positive cash flow means the property pays for itself and provides income. Negative cash flow requires you to contribute money each month.

Frequently Asked Questions

What is a good ROI for a rental property?

A good ROI depends on your market and risk tolerance. Generally, investors look for 8-12% total ROI. Cash-on-cash returns of 8-10% are considered good, while cap rates of 5-10% are typical depending on the market. Higher-risk properties in emerging markets may target higher returns.

How accurate is this calculator?

This calculator provides estimates based on the numbers you input. Actual returns may vary based on unexpected repairs, vacancy periods, rent changes, and property appreciation. We recommend conservative estimates and building in a buffer for unexpected expenses.

Should I use cash-on-cash or cap rate?

Use both. Cap rate is useful for comparing properties without considering financing - it shows the property's inherent return. Cash-on-cash shows your actual return on money invested, which is important when using leverage (a mortgage). For comparing different financing options, cash-on-cash is more relevant.

What expenses should I include?

Include all operating expenses: property taxes, insurance, maintenance (typically 1% of property value per year), vacancy allowance (5-10%), property management (8-10% if using a manager), HOA fees, and any utilities you pay. Don't forget to budget for unexpected repairs.

Is this tool free to use?

Yes! The ROI calculator is completely free. We offer it as a helpful resource for landlords and property investors. If you'd like to track your actual property performance over time, check out UnitHub.

Track your actual rental performance

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