Free real estate calculator
Rental Property Deal Analyzer
Underwrite a rental before you buy. Test cash flow, returns, financing, reserves, downside assumptions, and long-term equity in one free analysis.
Property and purchase
Financing and income
Operating assumptions
Reserves and growth
Result
This deal cash flows in the base case
Monthly cash flow
+$352
Cash-on-cash return
6.51%
Cap rate
8.08%
DSCR
1.26
Break-even occupancy
82.85%
Cash required
$65,000
6-month reserve target
$15,286
Downside check
No immediate base-case warnings
The base case has positive cash flow, at least 1.25 DSCR, funded reserves, and break-even occupancy at or below 90%. Test the conservative case before deciding.
Sensitivity
What if the assumptions move?
Conservative
-$1/mo
-0.03% cash-on-cash
Base
+$352/mo
6.51% cash-on-cash
Optimistic
+$555/mo
10.25% cash-on-cash
Conservative uses 10% lower rent, 3% more vacancy, and 2% more repairs. Optimistic uses 5% higher rent, 2% less vacancy, and 1% fewer repairs.
Long-term contribution
Five- and ten-year outlook
| Horizon | Equity | Wealth created |
|---|---|---|
| Year 5 | $102,141 | +$66,104 |
| Year 10 | $165,714 | +$176,222 |
Wealth created is projected equity plus cumulative cash flow minus upfront cash invested. It excludes selling costs, taxes, and the return that cash could earn elsewhere.
Keep analyzing this deal.
Keep these assumptions, review the property and mortgage, and compare this deal with the rest of your plan. The free plan includes one rental and three projections.
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What this rental deal analyzer estimates
This rental property deal analyzer estimates monthly cash flow, net operating income, cap rate, cash-on-cash return, DSCR, break-even occupancy, reserve needs, and five- and ten-year wealth contribution. It also shows conservative, base, and optimistic sensitivities instead of relying on one set of assumptions.
How to calculate rental property cash flow
Rental cash flow is estimated by subtracting operating expenses and debt service from rent. For planning, include vacancy, repairs, capital reserves, taxes, insurance, HOA dues, property management, and other recurring expenses. Follow the step-by-step rental cash flow guide for a worked example.
What counts as operating expenses
Operating expenses usually include taxes, insurance, HOA dues, management, vacancy, repairs, maintenance, and reserves. Mortgage principal and interest are debt service, not operating expenses, but they still affect cash flow. Use the rental operating expenses checklist to avoid missing or double-counting a category.
NOI versus cash flow
NOI measures income after property operations but before mortgage debt service. Cash flow subtracts debt service too, so it changes with the buyer's financing. See the full NOI versus cash flow comparison before interpreting cap rate, DSCR, or cash-on-cash return.
Why cash-on-cash return matters
Cash-on-cash return compares annual cash flow to the cash invested in the deal. It helps you compare rental income against other uses of your capital, while still leaving room to consider risk and reserves. See the cap rate versus cash-on-cash return guide for a side-by-side example using two financing plans.
What is good rental property cash flow?
There is no universal dollar benchmark because rent, expenses, financing, cash invested, and risk vary by deal. Start by confirming that cash flow stays positive after realistic vacancy, repairs, capital reserves, and debt service. Then compare the dollar result with rent, cash invested, and a downside case. The guide to average cash flow from rental property explains why $100 or $500 per month can mean very different things.
Why DSCR matters
DSCR compares net operating income to debt service. Lenders and investors use it to understand whether a property has enough income to support the loan. After estimating cash flow, project the property's long-term wealth impact.
FAQ
How do you calculate rental property cash flow?+
Estimate gross rent, subtract operating expenses, then subtract mortgage debt service. The result is estimated monthly cash flow before income taxes.
What is a good cash-on-cash return for a rental property?+
A good cash-on-cash return depends on market, risk, financing, and investor goals. Use it as a comparison metric, not as the only decision rule.
What expenses should I include for a rental property?+
Include taxes, insurance, HOA dues, vacancy, repairs, maintenance, management, capital reserves, utilities you pay, and other recurring costs.
What is DSCR?+
DSCR stands for debt service coverage ratio. It is net operating income divided by debt service. A higher DSCR generally means more income cushion against the loan payment.
Is a rental worth buying if it only cash flows a little?+
Maybe, but low cash flow leaves less room for vacancy, repairs, and surprises. Compare the full return profile, reserves, and downside risk before relying on appreciation or future rent growth.