Propdealcalc

Rental property calculator

Analyse a rental property in one place: cash flow, cap rate, cash-on-cash return, debt coverage and the return over the years you hold it. Free, no sign-up, any currency. Your numbers and saved deals stay in this browser.

Purchase

$
$
Closing costs, transfer tax, legal fees.
$
%
% a year
years
$

Income

$per month
All units together.
$per month
Parking, laundry, storage.
% of rent

Operating expenses

$per year
$per year
$per month
% of rent
% of rent
Roof, heating, appliances over time.
% of collected rent
$per month
$per month

Over time

% a year
% a year
% a year
years
% of sale price

Year one

Cash flow$80per month
Cash-on-cash return1.2%
Cap rate6.37%
DSCR1.06
Net operating income$15,934per year
Cash you put in$80,000
  • Debt coverage of 1.06 is below the 1.2 to 1.25 that many lenders want for rental loans.
  • Monthly rent is 0.88% of the price. The 1% rule of thumb looks for at least 1%, which is hard to meet in many expensive markets.
  • Break-even occupancy: 91%. Below that, the property loses money.

Where the money goes (year one)

Collected$25,080
Paid out$24,116

Over 10 years

Total profit$109,062Cash flow plus sale, minus cash in
IRR9.7%Yearly return on your cash
Equity multiple2.36x
Net from sale$154,922After selling costs and the loan

The numbers that matter in a rental deal

  • Net operating income (NOI): rent and other income after vacancy, minus operating expenses. It leaves out the mortgage, so it describes the property itself.
  • Cap rate: NOI divided by the price. It compares properties regardless of how they are financed.
  • Cash flow: NOI minus the mortgage payments. This is what lands in your account each month.
  • Cash-on-cash return: yearly cash flow divided by the cash you put in (down payment, buying costs, repairs and loan fees).
  • DSCR: NOI divided by the yearly mortgage payments. Above 1 the rent covers the loan; lenders for rental property often want 1.2 to 1.25.
  • IRR: the yearly return over the whole hold, counting cash flow each year and the money from the sale at the end.

Don't forget the hidden costs

New investors often leave out vacancy, maintenance and capital reserves for big replacements such as a roof or a boiler. Together they are often 10% to 20% of the rent. Leaving them out is the most common reason a deal that looks good on paper loses money.

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