Rental Property Calculator 2026: Cash Flow & ROI Analysis
Analyze any rental property like an investor: monthly cash flow, cap rate, cash-on-cash ROI, and break-even rent — with vacancy and maintenance built in.
Property Details
Investment Results
Interpreting Your Results
- • Positive cash flow = the tenant covers the mortgage and expenses
- • Cap rate 5-7% is typical for single-family rentals in 2026
- • Cash-on-cash ROI over 8% is a common investor target
- • If rent falls below break-even, you lose money every month
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Find Investment LendersHow Rental Property ROI Works
Real estate investors evaluate deals with three core metrics. Cap rate measures the property's net operating income (rent minus operating expenses, before the mortgage) as a percentage of purchase price — it tells you how the deal performs regardless of financing. Cash-on-cash ROI divides your annual cash flow by the cash you invested, showing your return on the down payment specifically. Monthly cash flow is what lands in your bank account after the mortgage and every expense.
The 1% Rule and Other Quick Benchmarks
- 1% rule: monthly rent should be ≥ 1% of the purchase price
- 50% rule: roughly half of gross rent goes to operating expenses
- Cap rate: 4-7% for single-family, 6-10% for multi-family/value-add
- Cash-on-cash: 8%+ is a common target for leveraged rentals
- Break-even rent: the minimum rent that covers all costs
Rental Property Calculator FAQ
What is a good cap rate for a rental property?+
A good cap rate depends on your market and property type. In 2026, single-family rentals typically trade at 4% to 7% cap rates, while multi-family and value-add properties often reach 6% to 10%. Higher cap rates mean more risk and more return; lower cap rates usually reflect safer, higher-appreciation markets. Our calculator uses net operating income, so it isolates the property's performance from your financing.
What is cash-on-cash return and how is it different from cap rate?+
Cap rate measures the property's return before debt, while cash-on-cash ROI measures the return on the cash you actually invested — your down payment. If you buy a property with 20% down, your cash-on-cash return will be much higher than the cap rate because you are leveraging the bank's money. A positive cash-on-cash return means the property pays you after all expenses and the mortgage.
How do I calculate monthly cash flow on a rental?+
Monthly cash flow = effective gross rent (after vacancy loss) minus your mortgage payment (principal and interest) minus operating expenses (property tax, insurance, and maintenance). Positive cash flow means the property pays for itself; negative cash flow means you are subsidizing it each month. The 1% rule — monthly rent of at least 1% of purchase price — is a common quick screening benchmark.
What is break-even rent?+
Break-even rent is the minimum monthly rent you must charge to cover your mortgage payment plus operating expenses, with no cash flow left over. If you cannot rent the property for at least the break-even amount, you will lose money every month. It is a critical number for negotiating purchase price and projecting vacancy risk.
Should the 1% maintenance rule apply to every property?+
The 1% rule (budget 1% of the purchase price per year for maintenance and repairs) is a solid baseline, but newer properties may need less (0.5-0.75%) while older homes can need 1.5% or more. Properties with pools, large roofs, or aging HVAC systems cost more to maintain. You can adjust the maintenance input above to match your property's age and condition.