Question 1

How accurate is this calculator?

Accepted Answer

It uses the same formulas professional investors and underwriters rely on — standard amortization, NOI-based cap rates, and cash-on-cash calculations. The output is only as good as the inputs, so use real numbers from listings, county tax records, and insurance quotes.

Question 2

What is a good cash-on-cash return?

Accepted Answer

Most investors target 8–12%. Above 12% is excellent — your money is working hard. Below 5% and you should ask whether the risk justifies tying up that capital. In competitive markets, 6–8% might be realistic. In secondary markets, 10%+ is achievable.

Question 3

What is cap rate?

Accepted Answer

Net Operating Income divided by purchase price. It measures a property's return independent of financing — so you can compare a cash deal to a leveraged one on equal footing.

Question 4

What expenses should I include?

Accepted Answer

Everything: mortgage P&I, property taxes, insurance, HOA, property management (8–10%), maintenance (1–2% of property value), vacancy (5–10%), and capital expenditures.

Question 5

What is the 1% rule?

Accepted Answer

A quick screening tool: monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for $2,000/mo or more. It won't tell you if a deal is good, but it filters out the ones that clearly aren't.

Question 6

Does this work for multi-family properties?

Accepted Answer

Yes. Enter total rent from all units combined. The calculator works for single-family, duplexes, triplexes, and small multi-family.

Question 7

How much cash flow per month is good?

Accepted Answer

Most buy-and-hold investors target $200–$500+ per door after all expenses. Negative cash flow means you're paying to own it — that's a warning sign.

Question 8

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

Accepted Answer

Cap rate ignores how you finance the deal — it's NOI divided by purchase price. Cash-on-cash measures the return on the cash you actually invested, including the effect of leverage. A property with a 6% cap rate might deliver 12% cash-on-cash if you finance 75% of it.

Rental Property Calculator

Initial Investment

Monthly Cash Flow

First Year Return

How to use the calculator

Define the deal structure

Layer in real income and costs

Stress-test your assumptions

Read the results like an investor

Frequently asked questions