The 1% rule is a quick screen: monthly rent should be at least 1% of the purchase price. A $300,000 home would need about $3,000/month rent to pass. It's a rough filter, not a full analysis - use cap rate and cash flow for the real picture.

Rental Property ROI Calculator

Q: What is a good cap rate for a rental property?

It varies by market and risk, but many investors look for a cap rate of roughly 5-8% or higher. Lower cap rates are common in expensive, low-risk markets; higher cap rates in cheaper or higher-risk areas. Cap rate = net operating income divided by purchase price, and it ignores financing.

Q: What is a good cash-on-cash return?

Many buy-and-hold investors target a cash-on-cash return around 8% or more, though at higher interest rates many deals come in lower or negative. Cash-on-cash = annual pre-tax cash flow divided by the total cash you invested (down payment plus closing costs).

Analyze any rental deal in seconds — cap rate, cash-on-cash return, monthly cash flow, NOI, DSCR and the 1% rule. Every assumption is editable, nothing is hidden, and no signup is required.

Purchase price ($)

Monthly rent ($)

Down payment (%)

Interest rate (%)

Loan term (yrs)

Income & expense assumptions (editable)

Property tax ($/yr)

Insurance ($/yr)

HOA ($/mo)

Vacancy (%)

Maintenance (% of rent)

Management (% of income)

Closing costs (% of price)

Other expenses ($/mo)

Other income ($/mo)

Estimates for education only — not financial or investment advice. Verify every number (taxes, insurance, rents) for the specific property and market.

How this rental ROI calculator works

It runs the standard buy-and-hold analysis every investor does before making an offer — instantly, and with every input visible so you can pressure-test a deal:

NOI (net operating income) = effective rental income − operating expenses (taxes, insurance, HOA, maintenance, management, vacancy). It excludes your mortgage.
Cap rate = NOI ÷ purchase price. A financing-independent measure of the property's yield.
Cash flow = NOI − mortgage payments. What actually lands in your pocket.
Cash-on-cash return = annual cash flow ÷ total cash invested (down payment + closing costs).
DSCR = NOI ÷ annual debt service. Lenders often want ≥ 1.2. Below 1.0 means the rent doesn't cover the loan.
1% rule = monthly rent ÷ price. A quick screen; ≥ 1% is the classic (increasingly rare) target.

Change any assumption and the numbers update live. At today's higher interest rates, plenty of deals come out cash-flow negative — this calculator shows you that honestly before you buy.

Full guide: what cap rate, cash-on-cash, DSCR and the 1% rule actually mean →

Frequently asked questions

What is a good cap rate for a rental property?

It depends on market and risk, but many investors look for roughly 5–8%+. Lower cap rates are typical in expensive, low-risk metros; higher in cheaper or riskier areas. Cap rate ignores your financing, so it compares properties on equal footing.

What is a good cash-on-cash return?

Many buy-and-hold investors target ~8%+, though at current rates plenty of deals land lower or negative. It measures the annual cash return on the actual cash you put in.

What's the 1% rule?

Monthly rent should be at least 1% of the purchase price ($3,000 rent on a $300k home). It's a fast filter, not a full analysis — lean on cap rate and cash flow for the real decision.

Does this store my numbers?

No. Everything runs in your browser; nothing is uploaded and there's no signup. You can share a result via a link — the inputs are encoded in the URL.

Methodology

Mortgage payment uses standard amortization on (price − down payment) at your rate and term. Maintenance is a % of gross rent; management a % of effective income; vacancy a % of gross rent. NOI excludes mortgage and income taxes/depreciation. Cash-on-cash is pre-tax. All figures are estimates — confirm actuals for the specific deal. Not investment advice.