Reviewed August 27, 2026
Rental property calculator methodology
The calculator applies visible formulas to your inputs. It does not estimate a property address, forecast appreciation, or decide whether a deal is suitable for you.
Formulas shown in the results
- Effective rent subtracts the entered vacancy allowance from gross rent.
- NOI subtracts operating expenses from effective income and excludes debt service.
- Cap rate divides annual NOI by purchase price.
- Monthly cash flow subtracts operating expenses and debt service from effective income.
- Cash-on-cash return divides annual pre-tax cash flow by the cash invested.
- Break-even rent solves for the rent required to produce zero monthly cash flow under the entered assumptions.
Primary references
- IRS Publication 527: Residential Rental Property — Federal rental-income and expense context; this calculator does not prepare a tax return.
- HUD Fair Market Rents — A public rent reference. Verify against current, property-specific local comparables.
- CFPB Loan Estimate explainer — Loan-cost and closing-cost context. Use the actual lender disclosure in a real analysis.
Review standard and limits
Model logic, defaults, and external links were reviewed August 27, 2026. Replace every default with a current quote, lease, lender disclosure, tax record, insurance estimate, inspection finding, or local comparable before making an offer. This is educational analysis, not investment, lending, legal, or tax advice.