Purchase Details

$
$
$
$

Annual Income

$
%
US avg ~8%; adjust for your market

Annual Expenses

$
$
%
$
$

Financing

%

Investment Metrics

0%
Cap Rate
Target: 5–8%+
0%
Cash-on-Cash Return
Target: 6–12%+
0×
Gross Rent Multiplier
Lower = better (target <15)
0%
1% Rule
Monthly rent ÷ price
Income & Expense Breakdown
Gross Annual Rent$0
− Vacancy Loss−$0
= Effective Gross Income$0
− Property Tax−$0
− Insurance−$0
− Mgmt Fees−$0
− Maintenance−$0
− Other−$0
= Net Operating Income (NOI)$0
− Annual Mortgage (P+I)−$0
= Annual Cash Flow$0
Monthly Cash Flow$0

What is the Rental Property ROI Calculator?

Evaluating a rental property investment requires more than just comparing purchase price to rent — you need to account for vacancy, all operating expenses, financing costs, and your actual cash invested. This calculator gives you the four metrics that serious investors use: Cap Rate (property-level return independent of financing), Cash-on-Cash Return (return on your actual cash invested), Gross Rent Multiplier (quick market comparison tool), and the 1% Rule check. It also shows your full NOI breakdown and monthly cash flow after mortgage payments.

Key Metrics Explained

  • Cap Rate = NOI ÷ Purchase Price. Measures property return independent of financing. Target 5–8%+ depending on market.
  • Cash-on-Cash Return = Annual Cash Flow ÷ Total Cash Invested. The real return on your money. Target 6–12%+.
  • GRM = Purchase Price ÷ Annual Gross Rent. Quick comparison tool. Lower is better; most investors target under 15.
  • 1% Rule = Monthly Rent ÷ Purchase Price. Screen for potential deals; 1%+ warrants deeper analysis.

Why Use tools999.com?

100% free, no account required. All calculations happen in your browser — your financial data is never stored or shared.

Frequently Asked Questions

4–5% is typical for prime urban markets (lower risk). 6–8% is solid for suburban and secondary markets. 8–10%+ indicates higher-yield or value-add properties. A lower cap rate in a high-appreciation market may still be excellent when total return (income + appreciation) is considered.

Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested (down payment + closing costs + initial repairs). It measures the actual return on your out-of-pocket investment. Most investors target 6–12% cash-on-cash.

Monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for $2,000+/month. This is a quick screening tool — always run full numbers before making a decision.

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