How to read these numbers
Every rental decision comes down to four numbers. This calculator surfaces all four the moment you enter a deal, so you can compare properties on the same footing instead of guessing.
Monthly cash flow
What lands in your pocket after the mortgage and every operating cost — taxes, insurance, vacancy, maintenance, and management. Positive cash flow means the property pays you to own it. Negative means you feed it every month, betting on appreciation.
Cash-on-cash return
Your annual cash flow divided by the actual cash you put in (down payment plus closing and rehab). It answers the only question that matters to an investor: what return is my money earning this year? Many investors hunt for 8% or better.
Cap rate
Net operating income divided by purchase price, ignoring the loan. It lets you compare a financed deal against an all-cash one — and compare your market against another. A "good" cap rate is entirely local; what matters is how a deal stacks against comparable properties nearby.
Total cash in
The real cost of getting in the door: down payment plus closing costs and any upfront rehab. This is the denominator behind cash-on-cash, and the number that decides how many deals you can actually do.
Frequently asked
- What's a good cash-on-cash return on a rental?
- Many buy-and-hold investors target 8%+ cash-on-cash, though it varies by market and risk tolerance. Appreciation-focused markets often accept lower cash returns; cash-flow markets demand higher.
- Should I include property management if I self-manage?
- If you plan to self-manage, you can set management to 0% — but many investors leave 8–10% in anyway, because a deal that only works when you work for free isn't really cash-flowing. Setting it shows the deal's true arms-length return.
- Why does vacancy matter if my unit is rented?
- Vacancy is a reserve, not a prediction. Tenants turn over, units sit empty between leases, and budgeting 5–8% means a single vacant month doesn't wipe out your year.
- Does this work for BRRRR or flips?
- This tool models a standard rental hold. BRRRR (with refinance math) and Fix-&-Flip (with ARV and holding costs) need their own models — those live in the full Investor Calculator Bundle.