Rental Property Calculator

Purchase Details

Purchase Price ($): The total cost to buy the property. This is the initial amount you agree to pay the seller and is crucial for calculating your investment's financing and potential returns.

Down Payment (%): The percentage of the purchase price that you pay upfront. A higher down payment typically results in lower loan amounts and less interest paid over time. For an all-cash deal, set this to 100%.

Down Payment Amount ($): This is the actual cash amount you will pay upfront when purchasing the property. It is calculated as a percentage of the purchase price.

Loan Amount ($): The amount of money you borrow from a lender to purchase the property. It is the difference between the purchase price and the down payment.

Interest Rate (%): The percentage charged on the loan amount annually by the lender. This rate significantly affects the total cost of the loan over its duration.

Loan Term (yr): The number of years over which you will repay the loan. Longer terms generally mean lower monthly payments but more interest paid over time.

Closing Cost ($): The fees and expenses you pay to finalize the real estate transaction, excluding the purchase price. These typically include legal fees, title insurance, and processing costs.

Repair Cost ($): The estimated cost to repair and renovate the property post-purchase to bring it to a rentable or saleable condition.

ARV ($): After Repair Value. The projected value of the property after all repairs and renovations are completed. It’s crucial for assessing the profitability of real estate investments, particularly flips and rehabilitations.

Monthly Income

Total Rent ($): The total monthly income received from renting out the property. This is a critical figure for calculating the property's yield and cashflow.

Other Income ($): Any additional income associated with the property, such as parking fees, laundry services, and pet fees.

Monthly Expenses

Loan Payment ($): The monthly amount paid to the lender, covering principal and interest based on the loan’s terms.

Property Tax ($): The tax charged by the local government, calculated as a percentage of the property’s assessed value.

Insurance ($): The monthly cost of insuring the property against damages and liabilities.

HOA ($): Homeowners Association fees, applicable if the property is in a planned development or condominium.

Utilities ($): The cost of utilities paid by the property owner, such as water, electricity, and gas, if not passed on to tenants.

Other Expenses ($): Any other monthly expenses not classified elsewhere, including legal fees, accounting services, and property management.

Maintenance Rate (%): The percentage of the total rent set aside each month for maintenance issues.

Maintenance Amount ($): The actual dollar amount estimated per month for maintaining the property, derived from the maintenance rate.

Vacancy Rate (%): The percentage of the year the property is expected to be vacant (not rented).

Vacancy Amount ($): The expected monthly income loss due to vacancies, calculated based on the vacancy rate.

Management Rate (%): The fee percentage charged by property management services if utilized.

Management Amount ($): The dollar amount paid monthly to a property manager if the service is used, based on the management rate.

Cash on Cash

Cash on Cash Return: A key real estate investment metric that measures the cash income earned on the cash invested in a property. It is calculated by dividing the annual pre-tax cash flow by the total cash invested, often expressed as a percentage. This metric helps investors evaluate the yield of their investment property relative to other investment opportunities, providing a snapshot of the investment's performance exclusively from cashflow perspective.

Monthly Cashflow: The net amount of money made each month after all expenses are subtracted from total income. This figure helps investors understand the ongoing profitability of the property and influences the overall cash on cash return.

Annual Return: The total net profit of the property on an annual basis. This includes both the regular cash flow generated through rental income, as well as any capital gains achieved from the appreciation of the property's value over time. It’s a crucial metric for comparing the efficiency of different real estate investments and reflecting both the immediate income and long-term investment growth.