Rental Property ROI & Cash Flow Analyzer
Enterprise-grade real estate investment calculator. Features Cash-on-Cash return, Cap Rate analysis, 50% rule screening, and a built-in portfolio comparison tool.
OpEx calculated as 50% of Gross Rent.
Adjust target to change KPI color thresholds.
| Address | Price | Cash Needed | Cash Flow/mo | Cap Rate | CoC ROI | Action |
|---|---|---|---|---|---|---|
| No saved deals. Calculate and click 'Save to Portfolio' to compare properties. | ||||||
About
Real estate investment is a game of margins, not just gross numbers. Novice investors often focus solely on the spread between rent and mortgage, ignoring the silent killers of profitability: vacancy, capital expenditures (CapEx), and management slippage. This oversight transforms a projected asset into a monthly liability.
This tool is designed for the rigorous underwriting of residential and small commercial rental properties. Unlike standard estimators, it incorporates granular expense itemization, industry-standard screening heuristics (such as the 50% Rule), and sensitivity analysis. It allows you to model risk by adjusting for asset class conditions - from pristine Class A turnkey properties to distresses Class D value-adds - ensuring your Cash-on-Cash (CoC) Return and Capitalization Rate (Cap Rate) calculations reflect reality, not optimism.
Formulas
The core of professional underwriting relies on accurate Net Operating Income (NOI) calculation. Note that Mortgage Interest and Principal are not operating expenses; they are debt service.
1. Net Operating Income (NOI):
NOI = Gross Rent − (Vacancy + Management + Maintenance + Taxes + Insurance)
2. Cash Flow (Monthly):
CFmo = NOI12 − Monthly Mortgage Payment
3. Cash-on-Cash Return:
CoC = Annual Cash FlowDown Payment + Closing Costs + Rehab Budget × 100
When the 50% Rule is activated, the Operating Expenses are simplified:
If 50% Rule &implies; OpEx ≈ 0.5 × Gross Rent
Reference Data
| Metric | Definition | Formula / Logic | Target Range (Typical) |
|---|---|---|---|
| NOI | Net Operating Income | Income − Operating Expenses | N/A (Higher is better) |
| Cap Rate | Capitalization Rate | NOIPurchase Price × 100 | 4% − 10% (Market Dependent) |
| CoC ROI | Cash-on-Cash Return | Annual Cash FlowTotal Cash Invested × 100 | 8% − 12% (Strategic Target) |
| 50% Rule | Screening Heuristic | Est. Expenses ≈ 0.50 × Gross Rent | Used for rapid filtering only |
| DSCR | Debt Service Coverage | NOIAnnual Debt Service | ≥ 1.25 (Lender Standard) |
| OpEx | Operating Expenses | Taxes + Ins + Maint + Mgmt + Vacancy | 35% − 50% of Rent |