Rental Property Cash Flow Calculator — Is This Property Worth Buying?

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 for Quick Rental Screening

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.

Real Rental Property Expenses Most Buyers Forget

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.

Frequently Asked Questions

What is a good cap rate for rental property?

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.

How much cash flow should a rental property generate?

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.

Is rental property still a good investment in 2026?

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.

Is the Rental Property Cash Flow Calculator — Is This Property Worth Buying? really free to use?

Yes — every FreeFixo tool, including the Rental Property Cash Flow Calculator — Is This Property Worth Buying?, is 100% free with no paywall, no premium tier, and no usage limits. You do not need to create an account, enter a credit card, or share an email.

How accurate is the Rental Property Cash Flow Calculator — Is This Property Worth Buying??

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.

Do I need to create an account to use the Rental Property Cash Flow Calculator — Is This Property Worth Buying??

No signup is ever required. The Rental Property Cash Flow Calculator — Is This Property Worth Buying? runs entirely in your browser — your inputs are never sent to a server, and we do not store, track, or share your data. Open it, get your answer, close the tab.