What is a good cap rate?

Cap rates typically range from 4-10%. Higher cap rates indicate higher returns but often come with more risk. A 5-7% cap rate is common in most markets.

What is cash-on-cash return?

Cash-on-cash return measures the annual pre-tax cash flow relative to the total cash invested (down payment + closing costs). It shows the return on your actual cash outlay.

What expenses should I include?

Include property taxes, insurance, maintenance (1% of value/year), property management (8-10%), vacancy (5-10%), utilities, and HOA fees if applicable.

Is this property a good investment?

Look for positive cash flow, cap rate above 5%, and cash-on-cash return above 8%. Also consider appreciation potential, location quality, and your investment goals.

What is a good cap rate?

Cap rates typically range from 4-10%. Higher cap rates indicate higher returns but often come with more risk. A 5-7% cap rate is common in most markets.

What is cash-on-cash return?

Cash-on-cash return measures the annual pre-tax cash flow relative to the total cash invested (down payment + closing costs). It shows the return on your actual cash outlay.

What expenses should I include?

Include property taxes, insurance, maintenance (1% of value/year), property management (8-10%), vacancy (5-10%), utilities, and HOA fees if applicable.

Is this property a good investment?

Look for positive cash flow, cap rate above 5%, and cash-on-cash return above 8%. Also consider appreciation potential, location quality, and your investment goals.

Educational Tool — Estimates for educational purposes only. Not financial advice.Disclaimer

Behavioral Insight

Multiple round numbers detected (3 inputs). Real financial figures are rarely this clean. Using exact figures from your accounts, quotes, or statements produces more accurate projections.

Real estate investing starts with understanding the numbers. This calculator helps you evaluate rental properties by estimating monthly cash flow, capitalization rate, and return on investment.

Rental Property Calculator

Analyze rental property investments including cash flow, cap rate, and ROI.

February 2026 (HUD data)

Property Price

Down Payment

Mortgage Rate

Loan Term

Monthly Rent

Vacancy Rate

Annual Expenses

Taxes, insurance, maintenance, etc.

Your Results

Monthly Cash Flow

11 yr 4 mo

Annual NOI

16,800

Cap Rate

6.72%

Cash-on-Cash Return

3.26

Total Investment

$57,500.00

Visualization

Wally's Analysis

AI-powered interpretation of your results

AI Summary

Key Insights

Optimization

What-If Scenarios

Investment Scorecard

$135.86/mo

Cash Flow

6.72%

Cap Rate

3.26%

Cash-on-Cash

1.11x

DSCR

Deal Analysis

Income

Gross Annual Rent$24,000

Less Vacancy (5%)−$1,200

Effective Gross Income$22,800

Expenses

Annual Expenses−$6,000

Annual Mortgage−$15,170

Net Operating Income$16,800

Quick Rules of Thumb

✗

1% Rule: Rent ≥ 1% of Price

Rent $2,000 vs 1% = $2,500

✓

Cap Rate: 6.72% (Good)

Most investors target 5-10% cap rate

DSCR: 1.11x (Marginal)

Lenders typically require DSCR ≥ 1.25x

ℹ

Price-to-Rent Ratio: 10.4x

Favorable for buying/investing

10-Year Projection

Assumes 3% annual appreciation, 2.5% rent growth, 2% expense growth

Year	Value	Equity	Cash Flow	Cum. CF
1	$257,500	$60,320	$2,080	$2,080
2	$265,225	$71,038	$2,542	$4,623
3	$273,182	$82,174	$3,016	$7,639
4	$281,377	$93,744	$3,503	$11,142
5	$289,819	$105,769	$4,002	$15,144
6	$298,513	$118,268	$4,514	$19,658
7	$307,468	$131,263	$5,040	$24,698
8	$316,693	$144,776	$5,580	$30,278
9	$326,193	$158,830	$6,134	$36,412
10	$335,979	$173,451	$6,702	$43,114

Upfront Investment Required

Down Payment (20%)$50,000

Est. Closing Costs (3%)$7,500

Total Investment$57,500

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AI Disclosure

Wally's Analysis uses GPT-4o-mini for educational interpretations. AI responses are not personalized financial advice and may be inaccurate. All core calculations are deterministic — AI only interprets results.AI Transparency →

Accuracy Commitment

Industry-standard formulas vetted against IRS, SSA, BLS, CFPB. Client-side calculations. Regularly updated.

This calculator provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making financial decisions.

Updated: February 2026 (HUD data) · Methodology

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