What is a good cash-on-cash return for a rental property?

Many experienced rental investors aim for 8–12% cash-on-cash return. In hot or supply-constrained markets, cash-on-cash can be lower while still being a sound investment thanks to appreciation. Always compare the cash-on-cash to other available investments before buying.

What is the 1% rule in real estate?

The 1% rule is a quick screening filter: monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for at least $2,000 per month. It's not always achievable in expensive markets, but it's a useful first pass before running the full ROI numbers.

What is a good cap rate for a rental property?

Cap rates vary heavily by market. A 6% cap rate might be excellent in a coastal metro and disappointing in the Midwest. Compare against recent comparable sales in the same city, not against a national average. The Invest1Now.com calculator returns the cap rate in seconds so you can stack-rank deals.

How do I calculate total ROI on a rental property?

Total ROI combines four return streams: annual cash flow, property appreciation over the hold period, loan principal paydown by the tenant, and tax benefits. The calculator combines cash flow, appreciation, and loan paydown into a single Total ROI percentage so you can see the full picture, not just monthly cash flow.

What is the BRRRR method?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You purchase a distressed property, renovate it to force appreciation, rent it out, then refinance based on the new higher After Repair Value to pull most or all of your cash back out. The freed cash funds the next deal — often leaving little of your own capital in any single property.

Is the Invest1Now.com Rental Property ROI Calculator free?

Yes. The Rental Property ROI Calculator on Invest1Now.com is 100% free with no signup or email gate, and it runs on both mobile and desktop. You can analyze unlimited deals.

Is this calculator financial advice?

No. The calculator is for educational purposes only and does not constitute financial or investment advice. Actual returns vary based on market conditions, financing terms, and unexpected expenses. Always perform thorough due diligence and consult a qualified professional before investing.

Rental Property ROI Calculator | Invest1Now

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Rental Property ROI Calculator

Q: How accurate is the BRRRR mode in this calculator?

It models a classic BRRRR deal: you purchase and rehab, then refinance at the after-repair value (ARV) with a new loan at a specified LTV. Cash pulled out at refinance reduces your net invested capital, and cash flow and cash-on-cash return update accordingly. Actual refinance terms depend on lender requirements, market conditions, and seasoning rules.

Q: What is the difference between cap rate and cash-on-cash return?

Cap rate ignores financing — it's net operating income divided by purchase price, useful for comparing properties on an apples-to-apples basis. Cash-on-cash return measures actual annual cash flow divided by the cash you invested. A property can have a high cap rate but a low cash-on-cash return if leverage is heavy, or vice versa.

Q: Should I include maintenance and vacancy even for a new property?

Yes. Even a brand-new property needs some maintenance over time, and vacancy happens between tenants. Using 5–10% of rent for each is the standard conservative practice. Ignoring these line items is how investors end up underwater on deals that looked great on paper.

Q: What if my monthly cash flow is negative?

Negative cash flow means you're feeding the property out of pocket every month. It may still work if strong appreciation is expected, but it raises risk significantly. The break-even rent output tells you the minimum rent the property needs to cover all costs — useful as a floor when negotiating with tenants or sellers.

Q: Does this calculator account for taxes?

The calculator includes property tax as an expense but does not model income tax on rental profit or capital gains at sale. Real estate offers significant tax advantages including depreciation, which can shelter rental income from taxes. Consult a CPA for a personalized tax projection.

Make smarter real estate decisions. Instantly analyze cash flow, cap rate, cash‑on‑cash return, and even run a full BRRRR refinance scenario — all in one place.

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Monthly Cash Flow

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Cap Rate

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BRRRR Ready

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Total ROI

📋 Analyze Any Rental Property

Enter your numbers and get instant results — including break‑even rent and long‑term appreciation

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Rental Property ROI Calculator

Analyze cash flow, cap rate, and total return — with BRRRR refinance mode

🏷️ Purchase Price

💵 Down Payment

📉 Interest Rate

💰 Monthly Rent

📆 Vacancy Rate

🏛️ Property Tax (annual)

🛡️ Insurance (annual)

🔧 Maintenance (% of rent)

👔 Management Fee (% of rent)

🏢 HOA (monthly)

📈 Annual Appreciation

⏳ Hold Period

years

🔄 BRRRR Mode (Buy, Rehab, Rent, Refinance, Repeat) OFF

🔨 Rehab Costs

🏡 After Repair Value (ARV)

💳 Refinance LTV

📉 Refi Interest Rate

💵 Monthly Cash Flow

📊 Cap Rate

📈 Cash-on-Cash Return

🏆 Total ROI (with appreciation)

⚖️ Break-Even Rent

⚠️ For educational purposes only. Assumes 30‑year fixed mortgage. Always consult a financial professional.

🧠 Key Metrics Explained

Understand the numbers that drive smart rental investments

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Cash Flow

Monthly rent minus all expenses and mortgage. Positive cash flow means the property pays you each month.

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Cap Rate

Net operating income divided by purchase price. A quick way to compare properties, regardless of financing.

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Cash‑on‑Cash Return

Annual cash flow divided by total cash invested. Shows how hard your money is working for you.

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BRRRR Method

Buy, Rehab, Rent, Refinance, Repeat. Pull out equity after renovation to fund the next deal — often with little of your own cash left in.

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Break‑Even Rent

The minimum monthly rent needed to cover all costs. Below this, you’re losing money every month.

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Total ROI

Combines cash flow, appreciation, and loan paydown over your holding period — the full picture of your return.

💡 Pro Tips for Rental Property Investors

Make every investment count with these proven strategies:

Use the 1% Rule as a quick filter: Monthly rent should ideally be at least 1% of the purchase price. Not always possible, but a great starting point.
Always run conservative numbers: Overestimate vacancy and maintenance. If the deal still looks good, you have a margin of safety.
Know your market’s cap rates: A 6% cap rate might be great in one city and terrible in another. Compare locally.
Plan for capital expenditures: Roofs, HVAC systems, and appliances will eventually need replacement — set aside reserves even if the calculator doesn’t show a separate line item.
Factor in property management: Even if you self‑manage initially, modeling a management fee ensures the property can eventually run without you.
Look for value‑add opportunities: Properties where you can increase rent through renovations often generate the highest returns — especially with BRRRR.
Hold for the long term: Transaction costs are high in real estate. The longer you hold, the more you benefit from appreciation and loan paydown.

❓ Rental Investing FAQs

Common questions about analyzing rental property returns:

What is a good cash‑on‑cash return for a rental?

Many experienced investors aim for 8–12% cash‑on‑cash return. However, in hot markets returns may be lower, and you might still benefit from appreciation. Always compare to other investments available to you.

How accurate is the BRRRR mode in this calculator?

It models a classic BRRRR: you purchase and rehab, then refinance at the after‑repair value (ARV) with a new loan at a specified LTV. Any cash pulled out reduces your net invested capital. The calculator updates cash flow and cash‑on‑cash return accordingly. Actual refinance terms depend on lender requirements and market conditions.

What's the difference between cap rate and cash‑on‑cash return?

Cap rate ignores financing — it’s based on the property’s net operating income divided by the purchase price. Cash‑on‑cash return measures the actual cash flow you receive relative to the cash you invested. A high cap rate doesn’t automatically mean high cash‑on‑cash return if you use a lot of debt.

Should I include maintenance and vacancy even for a new property?

Absolutely. Even a brand‑new property will have some maintenance, and vacancy can happen between tenants. Using 5–10% of rent for each is a common conservative practice.

What if my monthly cash flow is negative?

Negative cash flow means you’re feeding the property each month. This might still be acceptable if you expect strong appreciation, but it increases your risk. This calculator shows break‑even rent to help you understand what rent you actually need.

Does this calculator account for taxes?

The calculator includes property tax as an expense, but it does not model income taxes on rental profit or capital gains. Real estate offers tax advantages such as depreciation, which can reduce taxable income. Consult a tax professional for personalized advice.

📋 Analyze Any Rental Property

Rental Property ROI Calculator

🧠 Key Metrics Explained

Cash Flow

Cap Rate

Cash‑on‑Cash Return

BRRRR Method

Break‑Even Rent

Total ROI

💡 Pro Tips for Rental Property Investors

❓ Rental Investing FAQs

🏘️ Find Your Next Investment Property