Rental Property Calculator

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Purchase Price
Rental Rate
Percentage Down
Closing Costs
Property Tax
Interest Rate
Management Fee
Vacancy Rate

Field Information

*Property Info

*Management Fee

*Vacancy Rate


*Total Cash Needed

*Debt Service

*Gross Operating Income

*Annual Operating Expenses

*Cash-On-Cash ROI

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Single Family Rentals Sold


Yearly Rent Earned By Clients


Appreciation Last Year

Gain Financial Freedom Today

Our turnkey investment rental properties will earn you passive monthly income and move you toward your financial goals.

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Calculating ROI for Rental Properties

When it comes to real estate, maximizing your Return on Investment (“ROI”) is essential for achieving long-term success and financial freedom. One invaluable tool for any investor is a rental property calculator. So, we made a FREE rental property calculator you can try right here on our website. See how using a real estate investment calculator can help you make informed decisions about your investment’s profitability.

The Value of a Rental Property Calculator

Using our rental property calculator when purchasing any investment property is a vital tool that simplifies the process of analyzing potential investment returns. It takes into account various critical factors such as purchase price, expected rental income, operating expenses, and financing costs. By providing clear insights into the potential profitability of a property, this tool empowers investors in several key ways:

  • Quick Comparison: Investors can efficiently compare different turnkey properties based on their potential financial returns. This allows for a side-by-side evaluation of various investment opportunities, making it easier to see which properties offer the best potential for profitability according to specific criteria set by the investor.
  • Alignment with Financial Goals and Risk Profile: Our free real estate investment calculator helps investors identify properties that best match their financial objectives and risk tolerance. By inputting different scenarios and outcomes (such as increased CapEx or loss of rents), investors can see how each property aligns with their long-term investment strategies and choose ones that best fit their planned portfolio structure.
  • Strategic Adjustments: With solid, analytical feedback from the rental property calculator, investors can fine-tune their investment strategies. This might involve reconsidering certain markets, or shifting focus from capital appreciation to cash flow or vice versa. The calculator’s insights allow investors to make informed decisions based on financial projections and market data.
  • Verification of Turnkey Provider Information: When dealing with turnkey properties, it’s essential to verify the accuracy of the information provided by sellers or turnkey companies. A rental property calculator enables investors to independently assess the figures given and make their own calculations according to their risk profile, ensuring that the investment decisions are based on reliable inputs.
  • Understanding Cash Flow Dynamics: Beyond basic profitability, our rental property calculator allows investors to forecast monthly cash flow, taking into account factors like potential rent increases, property value appreciation, and the impact of different loan terms.
  • Sensitivity Analysis: By adjusting various parameters, such as interest or vacancy rates, investors can perform sensitivity analyses to understand how changes in market conditions might affect their investment rentals potential returns. This is crucial for developing investment strategies that can withstand economic fluctuations.
  • Long-Term Financial Planning: The rental property calculator also aids in long-term financial planning by allowing investors to predict future earnings and expenses. This can be especially useful for assessing the long-term viability of a rental property, planning for renovations, or calculating the potential return on investment.

By integrating these features into the decision-making process BEFORE your purchase, not only simplifies the evaluation of potential investment properties but also enhances your ability to make strategic, data-driven decisions. This investment tool is indispensable for anyone looking to optimize their real estate investment portfolio for maximum return and minimal risk.

How to Use Our Rental Property Calculator

To effectively use this rental property calculator, you’ll need to gather specific data about your current or potential investment properties. If you’re looking at one of our turnkey rentals, you can find all the information needed on the property listing page. See what’s needed below:

  • Purchase Price: List/contract price of the property.
  • Rental Rate: Expected monthly rental income.
  • Percentage Down: The percentage of the purchase price your lender will require as a downpayment (typically 20%).
  • Closing Costs: The processing fees you pay to your lender when you close on your loan (typically 1% of the total loan value).
  • Property Tax: This is the annual tax you will pay on the investment property. This can be looked up at the county assessor website or more easily, on Zillow.
  • Insurance Rate: This is your annual insurance cost on the property. You can use an average but you should get an actual quote from your insurance provider (or ask to speak with ours!).
  • Management Fee: Property management is crucial to your success and not something you want to skip on for an investment property. Our management partners all charge around 8% which is pretty standard across the industry.
  • Vacancy Rate: The percentage of time your unit is unoccupied through the year.
  • CapEx: The maintenance and repairs budget for your property for other than usual items.

Inputting this data accurately into the calculator will provide you with a detailed breakdown of your investment’s financial performance, including your cash flow, cash-on-cash return, cap rate, and other crucial financial metrics.

Key Metrics to Review

Understanding these metrics will help you interpret the results from your rental property calculation in order to make informed decisions:

  • Amount Down: The dollar amount required to be paid towards the loan at closing.
  • Amount Financed: The portion of the purchase price you are borrowing from the bank.
  • Total Cash Needed: The actual total cash amount you will need to bring to closing.
  • Monthly Debt Service: The monthly loan payment you will be required to make.
  • Yearly Debt Service: The total monthly debt service paid over the course of one year.
  • Gross Operating Income: This is the total annual rent collected minus the vacancy rate amount.
  • Annual Operating Expenses: Includes the total paid towards taxes, insurance, repairs and maintenance, utilities, and any other expenses.
  • Net Operating Income: Gross Operating Income minus Annual Operating Expenses.
  • Cash Flow: This is the net amount of cash that the rental property is generating after all expenses have been paid. Positive cash flow indicates that the property is generating more income than it costs to maintain.
  • Cash-on-Cash Return: This measures the cash income earned on the cash invested in the property. It is an essential metric for assessing the performance of an investment using leverage (borrowed capital).

Making the Most of Your Calculations

With the detailed analysis provided by the rental property calculator, you can:

  • Confirm Any Data From Provider: Numbers can easily be manipulated to work in the favor of the provider. Using this rental property calculator you can confirm the statistics provided yourself.
  • Fine-Tune Your Rental Investment Strategy: Refine your buying criteria based on which types of properties offer the best returns according to your goals.
  • Improve Rental Property Performance: Identify areas where operating costs can be reduced or rental income can be increased.

Our rental property calculator is an invaluable tool for investors seeking to maximize the returns on their real estate investments. It allows investors to quickly gauge the financial performance of various rental properties by comparing their potential returns, creating a more informed decision-making process. This lets the investor make good purchasing decisions by identifying investment rental properties that best meet their desired risk and return profiles.

Additionally, our rental property calculator can be instrumental in strategic planning. It enables investors to simulate different scenarios and adjust variables such as rental rates or financing terms to see how changes might affect their investment’s profitability. By providing clear insights, this calculator helps streamline the investment process, ensuring that investors can be proactive about their rental portfolio management.

Common Mistakes to Avoid in Rental Return Calculation

While rental property calculators are powerful tools, accuracy in data input is critical. Common pitfalls include:

  • Underestimating Expenses: Not accounting for all potential costs, such as vacancy rates and unexpected repairs, can lead to an overly optimistic ROI or even a loss. Investors must dial in these numbers before they commit to a specific investment property.
  • Overestimating Income: Be realistic about the rental property income and make sure you consider realistic market rates and potential vacancy periods. There are many tools online for getting your own rental comps.
  • Using Estimations: For most of the inputs, you should be able to find the exact numbers requested i.e. taxes on Zillow, insurance quote from provider, interest rate from lender, etc. Using estimations can swing your return on investment significantly if you’re off by even a small amount.

Using the Real Deal Properties rental property calculator is an excellent way for investors to gain a comprehensive understanding of their potential real estate investments BEFORE they commit. By understanding exactly what your returns will look like, you can make informed purchasing decisions and save yourself and your investment portfolio. You can also use the calculator for monitoring and improving the performance of your existing portfolio. Armed with the right tools and knowledge, you can optimize your investment strategy to maximize returns and ensure sustainable growth in your real estate portfolio.

See what our clients are saying about Real Deal Properties!

“Purchasing out of state can be daunting, but Jeff provided me with the confidence and support I needed. Their inspection reports and constant communication made me feel like I was right there. The property has performed beyond my expectations.”

James & Linda, Retiree Investors

“We’ve been interested in real estate investment for a while but didn’t know where to start. The team at Real Deal Properties made the process incredibly easy and transparent. They provided us a great property in an up-and-coming neighborhood, and it was already rented out from day one. We couldn’t be happier with our investment.”

Sarah Chen, First-Time Investor

“I added two single family rentals from Real Deal Properties to diversify my investment portfolio, and it was one of the best decisions I’ve made. Their market analysis and property selection are spot on. The team’s dedication to the craft is evident. Highly recommended.”

Carlton, Investor