Rental Property ROI Calculator
Estimate the potential profitability of buying and operating a rental property — total acquisition cost, financing, income, operating expenses, reserves, cash flow, Cap Rate, Cash-on-Cash Return, break-even and potential future equity. For educational purposes only.
What type of rental investment are you considering?
Long-term and short-term rentals do not use the same assumptions — they have different income structures, management fees, vacancy/occupancy models, setup costs, and operating expenses.
What is ROI?
Return on Investment (ROI) measures how much profit an investment may produce compared with the amount of money invested. A higher ROI generally means the investment is producing more return relative to the investor's capital. There is no universal minimum ROI that automatically makes every investment good or bad. Returns depend on market conditions, financing, risk, property type, expenses, appreciation, and the investor's goals. Some investors use approximately 12% or more annual return as a strong investment target, but this should be treated as a benchmark rather than a guarantee or universal rule.
= $7,000
Purchase price + closing costs + initial repairs + financing costs + other acquisition costs
Long-term
Break-even analysis
This is approximately the minimum income level required for the property to cover the expenses entered into the calculator.
Estimated monthly cash flow
ROI can be calculated differently depending on the investment strategy, so operating return, Cash-on-Cash Return, Cap Rate, and potential total return including appreciation are shown separately. Formulas: Cap Rate = NOI ÷ purchase price × 100. Cash-on-Cash = annual cash flow ÷ initial cash invested × 100. Operating return = NOI ÷ total acquisition cost × 100.
Financial breakdown
My target return
Your estimated return is below your selected target.
Some investors use approximately 12% or more annual return as a strong investment target, but acceptable returns vary depending on risk, leverage, market, property type, appreciation expectations, and individual investment goals.
Interested in finding an investment property?
Request an Investment Analysis
Tell me your budget, preferred area, and strategy. The figures you entered above are already included in the message.
This calculator provides estimates for educational purposes only. Actual returns may vary based on purchase price, financing, rental income, occupancy, vacancy, repairs, taxes, insurance, management fees, market conditions, appreciation, and other expenses. Past performance and projected appreciation do not guarantee future results. Consult appropriate real estate, financial, tax, legal, lending, and property-management professionals before making an investment decision.