Rental Property Calculator
Free rental property calculator with full pro-forma: NOI, cash-on-cash, DSCR, cap rate, GRM, break-even occupancy, and multi-year IRR with Excel export.
Frequently asked questions
What is a good cash-on-cash return for a rental property?
Most rental investors target 8-12% cash-on-cash return on stabilized long-term rentals. Under 6% is considered thin unless the deal has strong appreciation or forced-equity upside; over 12% often signals higher risk (secondary markets, heavy management, or under-reserved expenses).
How is NOI calculated for a rental property?
NOI = Effective Gross Income − Operating Expenses. Effective gross income is gross rent minus vacancy plus other income (laundry, parking, fees). Operating expenses include property tax, insurance, maintenance, management, capex reserves, HOA, landlord-paid utilities, and other operating costs — but exclude mortgage principal and interest, depreciation, and income tax.
What DSCR do lenders require on rental property loans?
Most DSCR-based investor loans require a minimum debt service coverage ratio of 1.20x-1.25x, with 1.15x sometimes accepted for strong borrowers and 1.30x+ preferred for larger loans. A DSCR below 1.0 means the property does not generate enough NOI to cover its own debt service.
Should I include a CapEx reserve in rental property analysis?
Yes — leaving capital expenditure reserves out is the most common way pro-formas overstate cash flow. Set aside 5-10% of collected rent for future roof, HVAC, water heater, flooring, and appliance replacements. Ignoring capex makes early years look great and later years painful.
What is break-even occupancy on a rental property?
Break-even occupancy = (Operating Expenses + Debt Service) ÷ Gross Potential Income. It is the minimum occupancy the property needs to cover all its bills. A break-even below 80% is healthy; above 90% means very little cushion if a tenant leaves or an expense spikes.
How does the 1% rule for rentals work?
The 1% rule says monthly gross rent should be at least 1% of the all-in purchase price (a $200k property should rent for $2,000+/month). It is a quick screener, not a decision tool — many strong appreciation markets are below 1% and many high-cap-rate markets clear it but come with heavier management burden.