Property calculators
Rental Property Calculator
Estimate whether a property could work as a rental by calculating pre-tax cash flow, gross yield, net yield, cash-on-cash return, break-even rent and upfront cash needed.
How this rental property calculator works
The calculator starts with purchase price, down payment, mortgage terms, rent and operating expenses. It derives the estimated loan amount from the purchase price minus the down payment.
Weekly rent is converted to a monthly estimate using weekly rent times 52 divided by 12. Monthly rent is used as entered. Vacancy and property management are treated as percentages of gross rent.
Building or house insurance and landlord insurance are shown separately so you can avoid double-counting when a shared fee already includes building cover.
Region and currency settings change defaults, labels and currency formatting only. No exchange-rate conversion is performed and no country-specific URLs are created.
Key terms and assumptions Fuller explanations for the rental metrics, projection assumptions and costs used in this calculator.
- Monthly cash flow
- Monthly cash flow is estimated rental income after vacancy and operating expenses, minus the mortgage payment. It is a pre-tax cash-flow estimate, not a complete profit forecast.
- Gross yield
- Gross yield compares annual gross rent with purchase price before expenses. It is useful for quick rent-to-price comparisons, but it does not show whether the property is cash-flow positive.
- Net operating income (NOI)
- Net operating income, or NOI, is rental income after vacancy and operating expenses, before mortgage payments and tax. It helps separate the property operation from the financing structure.
- Net yield / capitalization rate (cap rate)
- Net yield, also called capitalization rate or cap rate, is annual NOI divided by property value. It looks at the property before financing and tax.
- Cash-on-cash return
- Cash-on-cash return compares estimated annual cash flow with the upfront cash invested. It includes the mortgage payment, so it can be negative even when the property has positive NOI.
- Debt service coverage ratio (DSCR)
- Debt service coverage ratio, or DSCR, compares NOI with mortgage payments. Above 1.0 means estimated rent after operating expenses covers the debt payment before tax; below 1.0 means it does not.
- Break-even rent
- Break-even rent estimates the gross monthly rent needed to cover vacancy, property management, fixed operating expenses and the mortgage payment.
- Loan-to-value
- Loan-to-value is loan amount divided by property value. A higher loan-to-value means more leverage and usually less cash buffer.
- Upfront cash needed
- Upfront cash needed includes the down payment or deposit, purchase costs and initial repairs entered in the calculator.
- Building insurance vs landlord insurance
- Building or house insurance generally relates to the property structure. Landlord insurance or liability cover may relate to liability, contents, loss of rent or landlord protection.
- Service charge / HOA / body corporate / strata fees
- Shared-property fees vary by region and property type. Some include building insurance and some do not, so check what is included before entering both shared fees and building insurance.
- Capital expense reserve
- A capital expense reserve is a monthly allowance for larger replacements such as roofing, heating, hot water, appliances, flooring and exterior work.
- Sale and return projection
- The optional sale projection estimates sale value, selling costs, remaining loan balance, cumulative cash flow and total profit before tax. It is assumption-based and keeps rent and expenses flat for v1.
- Capital gain before tax
- Capital gain before tax is estimated sale price minus purchase price and selling costs. It does not include capital gains tax, depreciation recapture, bright-line rules or other local tax treatment.
- Alternative annual return / opportunity cost
- The alternative annual return is a simple comparison rate for what the upfront cash might earn outside the property scenario. It is an assumption, not a forecast.
- Annualised return
- Annualised return converts the projected total return into an estimated yearly rate over the holding period. It is before tax and depends on the growth, selling cost and cash-flow assumptions entered.
- What this calculator does not include
- This calculator provides general pre-tax estimates only. It does not account for income tax, depreciation, capital gains tax, local landlord rules, vacancy shocks, financing approval or every ownership cost.
What this calculator does not include
This calculator provides general before-tax estimates only. It is not financial, tax, legal, accounting, mortgage or investment advice, and it does not account for every local rule, lender requirement, tax treatment, vacancy pattern, repair event or ownership cost.
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FAQs
What does monthly cash flow mean?
Monthly cash flow is estimated rent after vacancy and operating expenses, minus the monthly mortgage payment. It is a pre-tax cash-flow estimate, not a full profit forecast.
What is a good rental yield?
It depends on the property, financing, local market and risk. Gross yield is only a quick rent-to-price check; net yield and cash flow usually give a clearer picture because they include expenses.
What is net operating income?
Net operating income, or NOI, is rental income after vacancy and operating expenses, before mortgage payments and tax.
What is cash-on-cash return?
Cash-on-cash return compares estimated annual cash flow with upfront cash needed, such as the down payment, purchase costs and initial repairs. It can be negative if the property needs monthly top-ups.
What does debt service coverage ratio (DSCR) below 1.0 mean?
DSCR below 1.0 means estimated rental income after vacancy and operating expenses does not fully cover the mortgage payment before tax.
Does this include tax?
No. The calculator provides general pre-tax estimates only and does not include income tax, depreciation, capital gains tax or personal tax treatment.
Does this include capital gains?
Only the optional sale projection estimates capital gain before tax. The main monthly cash-flow result does not rely on future sale value.
Should I include building insurance if it is in the service charge, HOA or body corporate fee?
No. If the shared-property fee already includes building insurance, leave the building insurance field at 0 so the same cost is not counted twice.
What is the alternative return assumption?
It is a simple opportunity-cost comparison for what the upfront cash might earn elsewhere. It is only an assumption, not a forecast.
Can I use this calculator outside the United States?
Yes. Region settings change defaults, labels and currency formatting only. They do not create country-specific results or perform exchange-rate conversion.
Is this investment advice?
No. This calculator is a general estimate and is not financial, tax, legal, accounting or investment advice.