Rental Property Calculator: What the House Really Pays You
By Ed Brancheau, Co-founder, SunnyNest Homes. Reviewed by the SunnyNest family team. Updated October 2026.
Type in the price, the loan, the rent and the monthly costs. The calculator takes out vacancy, taxes, insurance, management, repairs and the loan payment, and shows what is left: your monthly cash flow, your cash-on-cash return and the cap rate.
The example it opens with barely makes money. We left it that way on purpose, because that is what a lot of rentals look like at a 7 percent loan once every cost is on the page.
Your rental
Filled in with our worked example: a $300,000 house renting for $2,400 a month, bought with 25% down at 7%. Example numbers, not a market quote. Type over any number.
The purchase and the loan
Enter 100 if you pay all cash
Escrow, title, lender fees and any repairs you pay before the first tenant
The rent and the monthly costs
What similar homes nearby actually rent for, not the asking rents
5% is about 18 days a year
Use the bill for this house. A new buyer's bill can be higher
A landlord policy, not a homeowner's policy
Enter 0 if you manage it yourself, and count your own time
Small fixes now, plus saving for a roof, water heater and AC later
Each month
| Rent | $2,400 |
| Vacancy | −$120 |
| Property taxes | −$110 |
| Insurance | −$125 |
| Property manager | −$192 |
| Repairs and replacements | −$240 |
| HOA dues | $0 |
| Net operating incomeWhat the house earns before the loan | $1,613 |
| Loan payment$225,000 at 7% for 30 years, principal and interest | −$1,497 |
| Cash flow | $116 |
Each year, and your return
| Cash flow for the year | $1,392 |
| Cash you put in$75,000 down plus $9,000 closing costs | $84,000 |
| Cash-on-cash returnYearly cash flow divided by the cash you put in | 1.66% |
| Net operating income for the year | $19,356 |
| Cap rateYearly net operating income divided by the price | 6.45% |
This one pays you $116 a month, which is thin. One water heater or one empty month wipes out a year of it, so the price you buy at matters more than anything else on this page.
How do you calculate cash flow on a rental property?
Start with the monthly rent. Subtract vacancy to get the rent you actually collect. Subtract property taxes, insurance, management, repairs and HOA dues to get net operating income. Subtract the loan payment. What is left is your monthly cash flow, the money you keep.
Cash flow = rent − vacancy − operating costs − loan payment
Here is the example the calculator opens with, one month at a time:
| Line | Amount | How we got it |
|---|---|---|
| Rent | $2,400 | Example rent |
| Vacancy | −$120 | 5 percent of the rent |
| Property taxes | −$110 | $1,320 a year |
| Insurance | −$125 | $1,500 a year |
| Property manager | −$192 | 8 percent of the rent |
| Repairs and replacements | −$240 | 10 percent of the rent |
| Net operating income | $1,613 | What the house earns before the loan |
| Loan payment | −$1,497 | $225,000 at 7 percent for 30 years |
| Cash flow | $116 | $1,392 a year |
Only principal and interest go in the loan line. Taxes and insurance are counted above it, so they are not counted twice even if your lender collects them with the payment.
What is the difference between cap rate and cash-on-cash return?
Cap rate is the yearly net operating income divided by the price, as if you paid all cash. It measures the house. Cash-on-cash return is the yearly cash flow after the loan, divided by the cash you actually put in. It measures your deal, loan and all.
The example shows why you need both. Its cap rate is 6.45%, a fair number for the house. Its cash-on-cash return is 1.66%, because a 7 percent loan costs more than the house earns on the borrowed part. When the loan rate is above the cap rate, borrowing makes your return worse, not better.
What is a good cash-on-cash return on a rental?
There is no one right number. Compare it with what the same cash would earn somewhere safe, like a savings account or Treasury bills. A rental is more work and more risk, so if its return is not clearly higher, the house is not paying you for the trouble.
Remember what the number leaves out. Loan paydown and appreciation add to your return over time, and a surprise like a new roof subtracts from it. A thin cash-on-cash return leaves no room for the surprise.
How much is a rental property worth based on its rent?
Divide the yearly net operating income by the cap rate buyers in your area expect. A house that nets $19,356 a year is worth about $322,600 to a buyer who wants a 6 percent cap rate. Ask a local agent or appraiser what cap rate rentals near you sell at.
On the example, $19,356 ÷ 0.06 = $322,600. The same math in reverse tells you the most to pay for a rental at the cap rate you want. Buy at a higher cap rate than the market and you bought below what the rent supports.
What is the 1% rule for rental property?
The 1% rule is a quick filter: the monthly rent should be at least 1 percent of the purchase price. A $300,000 house should rent for $3,000. Our example rents for 0.8 percent, which fails the rule, and that matches its thin cash flow. It is a filter, never a decision.
The rule ignores taxes, insurance and the loan rate, so a house that passes it in a high-tax state can still lose money, and one that fails it in a low-tax state can work. Run the full numbers on anything that gets past the filter.
Why does the example barely make money?
Because it is bought near full price with a 7 percent loan. The rent covers the costs and the loan with $116 to spare. Buy the same house 10 percent cheaper and it pays $277 a month. The money in a rental is made on the day you buy it.
That is why landlords look for houses bought below retail, and it is what our deal-alert list is for. Each alert comes with our repair best guess and the comps we used, so you can run it through this calculator before you ask to see it. How buying an assigned contract from us works.
- A lower price lowers the loan payment and the property tax.
- More down lowers the payment and raises the cash you have tied up.
- A lower rate helps most, and it is the one lever you do not control.
Questions landlords ask us
Do you save what I type into the calculator?
No. The math runs in your browser and nothing you type is stored or sent to us. We only see your information if you choose to join the deal-alert list at the bottom of the page.
Does this count appreciation, loan paydown or tax breaks?
No. Those are real parts of a rental's return, and none of them is cash in your account each month. The calculator shows the cash. Treat the rest as a bonus you cannot spend until you sell or refinance.
Should I count property management if I manage it myself?
Yes, at least at first. Your time is worth something, and if you ever hand the house to a manager the numbers have to still work. Enter 0 only if you are sure you will manage it yourself for as long as you own it.
Can I use this for a BRRRR deal?
Yes, in two passes. First enter the purchase, with the rehab in the closing costs box, to see the cash you put in. Then run it again after the refinance, with the new loan, to see the cash flow you keep.
What is effective gross income?
Effective gross income is the rent you actually collect: the full rent minus vacancy, plus any other income such as laundry or parking. The calculator shows it as rent minus vacancy, the first step before the operating costs come out.
Get rental deals that fit your buy box
Free. Tell us your counties, price range and how you buy, and we email you only when a house under contract fits. Never a phone call.