Calculate rental property cash flow, cap rate, cash-on-cash return, and 5-year ROI with appreciation. Free real estate investment calculator 2026, no signup.
A 36-year-old in Florida is considering a $285,000 duplex renting for $2,800/month combined and wants to know if the numbers actually work.
Result: Cash flow of $340/month positive after all expenses, cap rate 5.2% — slightly below her 6% target but she negotiates price down to $270,000 to hit it.
An investor in Texas with 2 properties wants to compare a $195,000 single family to a $380,000 fourplex for his next acquisition.
Result: Fourplex shows superior cash-on-cash return of 8.1% versus 4.3% for the single family — clear decision made.
A homeowner in Tennessee near Gatlinburg wants to know if converting her cabin to Airbnb beats her current long-term tenant.
Result: Short-term scenario shows $2,100/month more revenue but $800 more expenses — net $1,300 advantage for Airbnb justifies the switch.
4-6% is typical in major metros; 7-10%+ is common in smaller markets. Higher cap rates often signal higher risk or older properties.
Annual pre-tax cash flow divided by total cash invested (down payment + closing + rehab). Investors often target 8-12%+ cash-on-cash.
Monthly rent − mortgage − taxes − insurance − maintenance reserve − vacancy − management. Positive cash flow means the property pays for itself.
Cap rate excludes appreciation. The 5-year projection here factors in both cash flow and equity growth from principal paydown and appreciation for total ROI.
Look for: positive monthly cash flow after all expenses, cap rate at or above your local market average (4-8%), and cash-on-cash return above 8%. The 1% rule (monthly rent ≥ 1% of purchase price) is a quick filter, though hard to find in most markets today.
Vacancy rate (assume 5-10% of annual rent), capital expenditures (roof, HVAC, appliances — budget 1-2% of property value/year), property management (8-12% of rent if outsourced), and LLC or legal fees. Our calculator includes all of these.