• Calculator worksheet

Rental ROI Calculator

Evaluate a rental property across cash-on-cash return, cap rate, and long-run yield.

Inputs

Live

Purchase

Purchase Price

Cash Invested

Closing Costs

Financing

Interest Rate (APR)

The borrowing rate the business pays on debt, often adjusted for the tax benefit of interest.

Amortization

A scheduled paydown of a loan over time, usually splitting each payment between interest and principal.

Income & Expenses

Monthly Rent

Vacancy Rate

Annual Operating Expenses

CapEx Reserve (% GSI)

Spending on long-lived assets such as equipment, property, or major improvements.

Exit Horizon

Hold Period

Exit and tax assumptions

Variables and terms

Purchase Price

An input assumption used by this calculator. Change it to see how the result moves.

Cash Invested

An input assumption used by this calculator. Change it to see how the result moves.

Closing Costs

The cost assumption used to calculate the result.

Interest Rate (APR)

The borrowing rate the business pays on debt, often adjusted for the tax benefit of interest.

Amortization

A scheduled paydown of a loan over time, usually splitting each payment between interest and principal.

Monthly Rent

An input assumption used by this calculator. Change it to see how the result moves.

Vacancy Rate

The percentage assumption used by the calculation.

Annual Operating Expenses

An input assumption used by this calculator. Change it to see how the result moves.

CapEx Reserve (% GSI)

Spending on long-lived assets such as equipment, property, or major improvements.

Hold Period

The time period used to place the assumption in the model.

How to read this calculator

Cap Rate uses Year-1 net operating income before financing. DSCR compares that NOI with annual debt service, while Cash-on-Cash and Levered IRR reflect the cash invested and the modeled hold-period sale.

Cap Rate: 8.3%; Before financing
DSCR: 2x; NOI / debt service
Cash-on-Cash: 9.4%; Year-one cash return
Monthly Cash Flow: $3,020; After debt service

Year one operating statement

Annualized

Gross scheduled rent$123,480

Vacancy allowance($6,174)

Operating expenses($38,042)

Net operating income$73,090

Annual debt service($36,845)

Cash flow before tax$36,245

Annual operating schedule

Year	NOI	CFBT	Principal paid
1	$73,090	$36,245	$9,584
2	$74,917	$38,072	$10,125
3	$76,790	$39,945	$10,696
4	$78,710	$41,865	$11,300
5	$80,678	$43,832	$11,937
6	$82,695	$45,849	$12,610
7	$84,762	$47,917	$13,322
8	$86,881	$50,036	$14,073
9	$89,053	$52,208	$14,867
10	$91,279	$54,434	$15,706

Data view

Methodology