Investor calculator
Rental Property ROI Calculator
Run the numbers on a rental: cash flow and coverage in year one, then how rent growth, loan paydown, and appreciation build your return over a 5- or 10-year hold.
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Real-Time Updates
Results change as you adjust your inputs
Expert Guidance
Review your numbers with a licensed loan officer
- No credit check, no sign-up
- Updated 2026-09-24
- Equal Housing Lender · NMLS #466690 (verify)
Educational estimate, not a loan offer.
Rental Property ROI Calculator
Adjust any input and your results update instantly.
If you sell after 5 years
If you sell after 10 years
Year-by-year projection
| Year | NOI | Cash flow | Value | Loan balance | Equity |
|---|---|---|---|---|---|
| 1 | $18,629 | −$1,325 | $334,750 | $241,391 | $93,359 |
| 2 | $19,188 | −$766 | $344,793 | $238,855 | $105,938 |
| 3 | $19,763 | −$190 | $355,136 | $236,129 | $119,007 |
| 4 | $20,356 | $403 | $365,790 | $233,198 | $132,592 |
| 5 | $20,967 | $1,013 | $376,764 | $230,048 | $146,716 |
| 6 | $21,596 | $1,642 | $388,067 | $226,662 | $161,405 |
| 7 | $22,244 | $2,290 | $399,709 | $223,022 | $176,687 |
| 8 | $22,911 | $2,957 | $411,700 | $219,109 | $192,591 |
| 9 | $23,598 | $3,645 | $424,051 | $214,903 | $209,148 |
| 10 | $24,306 | $4,353 | $436,773 | $210,381 | $226,391 |
Financing with a DSCR loan? See how lenders view this property in the DSCR loan calculator or learn about DSCR loans.
How this calculator works
Net operating income = gross rent − vacancy − taxes, insurance, HOA, management (on collected rent), maintenance, and capital reserves (on gross rent). Cash flow = NOI − principal and interest. Cap rate = NOI ÷ price. Cash-on-cash = year-one cash flow ÷ (down payment + closing costs + rehab). Year-one coverage uses the same functions as our DSCR calculator.
Future years grow rent and expenses at your rates, amortize the loan, and grow the value at your appreciation rate. Sale proceeds are value minus selling costs and the loan balance. The annualized return is the internal rate of return on those cash flows, before income taxes, depreciation, and capital gains.
Frequently asked questions
›What is a good cash-on-cash return for a rental property?
There is no single standard. Many investors look for high single digits or better, but the right target depends on your market, risk, how much you expect appreciation and loan paydown to contribute, and what else you could do with the cash.
›What is the difference between cap rate and cash-on-cash return?
Cap rate is net operating income divided by the price, as if you paid cash. It compares properties regardless of financing. Cash-on-cash return is annual cash flow after the mortgage payment divided by the cash you invested, so it reflects your loan.
›What expenses should I include?
Property taxes, insurance, HOA dues, property management, repairs and maintenance, capital reserves for big items like roofs and HVAC, and a vacancy allowance. Leaving out maintenance, capital reserves, or vacancy is the most common way cash flow gets overstated.
›How is DSCR different from cash flow?
Lender DSCR typically divides rent by the full housing payment including taxes, insurance, and HOA, without management or maintenance. Investor cash flow subtracts all operating expenses. A property can meet a lender’s DSCR and still have thin cash flow.
›What does the annualized return include?
It is an internal rate of return on your cash invested using each year’s cash flow plus the net sale proceeds at the end, so it captures cash flow, loan paydown, and appreciation together. It is before income taxes and depreciation.
Projections are illustrations based on your assumptions, not predictions. Rents, expenses, vacancies, and values can fall as well as rise. Returns shown are before income taxes; consult a tax professional about depreciation and capital gains.
Calculators provide educational estimates only. They are not a loan offer, credit decision, or commitment to lend. Actual terms depend on underwriting, credit, property, and program availability.
Equal Housing Lender · NMLS #466690