Rental Property ROI
Professional Investment Analysis Tool
Know your numbers before you make the offer. A clean, live-updated ledger for professional investors—no sign-up required.
Rental Property ROI Calculator
Run the numbers on a rental property in under two minutes.
- 1Property
- 2Financing
- 3Income
- 4Expenses
- 5Results
PROPERTY TAX GUIDE
Understanding
Property Tax
Learn how property taxes are calculated, what factors affect your tax amount, and ways you can reduce what you owe.
What Property Tax Is?
A tax levied by local governments on real estate properties to fund essential public services.
How is it Calculated?
Property tax = Assessed Value x Local Tax Rate. Rates vary by location and are set by local authorities.
Why Does it Vary?
Tax rates differ by state, county, city, and even school district based on local budgets and services.
Ways to Lower Your Tax?
Exemptions, deductions, and appeals can help reduce your property tax liability.
A Logical, Multi-Step Flow
High-performing real estate deals require precision. Our rental property ROI calculator with expenses uses a grouped, multi-step logic to ensure you never miss a critical cash flow variable.
Establish your total cost basis. This is the financial foundation of your entire deal.
- Property Address
- Purchase Price
- Make Ready / Repairs
Leverage amplifies returns but introduces risk. Model your exact debt service here.
- Down Payment (%)
- Interest Rate
- Loan Term
Determine the raw revenue engine of your investment property.
- Monthly Rent
- Other Income
- Vacancy Rate
Expose hidden carrying costs with granular, real-world inputs.
- Property Taxes
- Insurance / Maintenance
- Management Fees
Set your benchmarks and instantly see if the deal meets your investment goals.
- Target Cap Rate
- Target Cash-on-Cash
The Results Dashboard
Primary Deal Metrics
Instantly view your Annual and Monthly Cash Flow, Cap Rate, and exact Cash-on-Cash Return. These are the non-negotiable numbers you need before speaking to a hard money lender or submitting an earnest money deposit.
Visual Cash Flow Charts
Toggle our interactive bar chart to visualize your Cumulative Cash Flow over a 10-year hold period. Alternatively, view the pie chart to see exactly how your Operating Expense Ratio (OER) breaks down by category.
Quick Summary Verdict
Compare your "Total Average Monthly Operating Costs" directly against your "Net Operating Income (NOI)" to see your exact operational margins at a glance.
Understanding the Calculations
Knowing the formulas powering your rental property cash flow metrics is what separates novice buyers from institutional real estate investors.
Determine your annual cash flow by subtracting all operating expenses and mortgage payments from your gross rent. Then, divide that annual cash flow by your total initial out-of-pocket investment (down payment, closing costs, and repairs).
(Cap Rate)
The Cap Rate measures the unleveraged return of an asset. It tells you what your annual yield would be if you bought the property entirely in cash, removing debt complications.
(CoC)
This metric measures the exact liquid cash profit you make relative to the actual out-of-pocket cash you invested. If you are using bank leverage, this is your most important metric.
If a property's gross monthly rent equals or exceeds 1% of its total purchase price, it is highly likely to cash flow positively and warrants a deeper evaluation.
Expect roughly 50% of your gross rental income to be consumed by operational overhead expenses (taxes, insurance, management, maintenance) before you even pay your mortgage.
