Rental Yield & Profitability Calculator
Analyze your investment property's potential returns
Note: Results are estimates. Consult a financial advisor for personalized advice.
1. Property Information
2. Financing Details
3. Rental Income
4. Operating Expenses
Rental Investment Analysis
Yield Metrics
Gross Rental Yield:
Net Rental Yield:
Capitalization Rate:
Cash Flow
Monthly Cash Flow:
Annual Cash Flow:
Cash-on-Cash ROI:
Expense Breakdown
Total Annual Expenses:
Mortgage Payments:
Operating Expenses:
Debt & Equity
Loan Amount:
Total Investment:
Equity Percentage:
Long-Term Projections
5-Year Profit:
10-Year Profit:
Annualized ROI:
Based on 3% annual appreciation
Investment Recommendation:
Understanding Rental Property Metrics
Our calculator helps you evaluate key profitability indicators for rental properties. Learn how to assess whether an investment property makes financial sense.
Key Rental Property Metrics
Essential Calculations:
- Gross Yield: Annual rent ÷ Property value
- Net Yield: (Annual rent - Expenses) ÷ Property value
- Cap Rate: NOI ÷ Property value (measures unleveraged return)
- Cash-on-Cash ROI: Annual cash flow ÷ Total cash invested
- Debt Service Coverage Ratio: NOI ÷ Annual mortgage payments
The 1% Rule in Rental Investing
A quick screening method: Monthly rent should be at least 1% of the total purchase price (including repairs). A $200,000 property should rent for $2,000/month. Our calculator provides more precise analysis.
Frequently Asked Questions
What's a good rental yield?
Generally:
- 6-8% = Average
- 8-10% = Good
- 10%+ = Excellent
Lower in high-appreciation markets (e.g., 4-6% in coastal cities). Net yield matters more than gross.
How much should I budget for maintenance?
Typically 1-2% of property value annually. Older homes may require 2-4%. Set aside reserves for big-ticket items (roof, HVAC).
Is positive cash flow necessary?
Ideally yes, but some investors accept negative cash flow in high-appreciation markets. Ensure you can cover shortfalls.
How does leverage affect returns?
Mortgages amplify both gains and losses. A 20% down payment means 5:1 leverage—appreciation is multiplied, but so are vacancies/expenses.
Should I manage properties myself?
Self-management saves 8-12% in fees but requires significant time. Professional management is tax-deductible and reduces stress.