Calculate rental property monthly cash flow, cap rate, and cash-on-cash return. Free investment property calculator. No signup.
A rental property listing price tells you nothing about whether it is a good investment. Monthly cash flow, cap rate, and cash-on-cash return tell you everything. Our calculator factors in mortgage, taxes, insurance, vacancy, maintenance, and management fees to show your real monthly profit — not the optimistic number most sellers advertise.
The 1% rule: monthly rent should equal at least 1% of purchase price. $200,000 property needs $2,000/month rent to pass initial screening. This rule has gotten harder to meet as prices rose faster than rents. Many good markets now operate at 0.7-0.8% — still potentially cash flow positive with low financing costs.
Often forgotten expenses: Vacancy rate 5-10% of annual rent, Maintenance and repairs 1% of home value per year, Capital expenditures 1-2% for roof HVAC and appliances over time, Property management 8-12% of rent if not self-managing, Property taxes, Insurance. Adding all these often turns a profitable rental negative on paper.
Cap rate equals Net Operating Income divided by Property Value. 6-8% is generally considered good for residential rentals. Below 5% is low, common in expensive coastal markets. Above 10% may indicate risk or distressed property. In 2026, 5-7% is achievable in most Midwest and Southern markets.
A common target is $100-$200 per door per month in cash flow after all expenses including mortgage. Some investors target higher at $300+ and prefer lower-priced markets. Negative cash flow can be acceptable if strong appreciation is expected, but relying on appreciation alone is speculative.
In specific markets yes. Best rental markets in 2026 feature growing population, job growth, affordable property prices relative to rents, and landlord-friendly laws. Struggling markets feature high vacancy, declining population, strict rent control, or prices too high for cash flow.
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The Rental Property Cash Flow Calculator — Is This Property Worth Buying? uses the same formulas, rates, and reference data that financial planners, professionals, and government sources publish. Results are estimates intended for planning and education — for situations involving large sums or legal consequences, confirm with a qualified professional before acting.
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