Run the numbers on a rental before you buy it
Six free calculators for rental property investors. Change any figure and the answer updates, with the working shown underneath. Start with cap rate below.
Cap rate
6.12%
Mid-range yield, typical of many established markets
- Yearly rent at full occupancy
- $28,800
- Vacancy allowance
- − $1,440
- Operating expenses
- − $9,000
- Net operating income
- $18,360
- Divided by purchase price
- $300,000
Pick the question you need answered
- What does this property yield before financing?Cap rate calculator
- What do I earn on the cash I actually put in?Cash-on-cash return calculator
- Does the rent cover the loan, and will a lender agree?DSCR calculator
- Does this deal make money each month?Rental property calculator
- How does the price compare with the rent?Gross rent multiplier calculator
- What will the loan cost each month?Investment property mortgage calculator
The order most investors work in
Each step uses a little more information than the last, so you only spend time on the listings that survive.
- Screen the listing
Gross rent multiplier needs only the price and the rent. Use it to drop the listings that are clearly overpriced.
- Check the yield
Cap rate adds vacancy and expenses, and lets you compare the property with others nearby.
- Price the loan
The mortgage calculator gives the payment, and DSCR shows whether a lender will accept it.
- Measure your return
Cash-on-cash return shows what your own cash earns, and the rental property calculator puts every figure on one worksheet.