Rental Property

Rental Property ROI Calculator

A rental property decision calculator that separates property performance from financing so investors can see the real return drivers.

Decision report included

Review the decision summary, key metrics, assumptions, and action items, then create a printable report for a lender, broker, household, or client discussion.

Use the report to document the scenario, explain the tradeoff, and agree on the next action.

Inputs

Enter your scenario.

Purchase price$590,000

Property purchase price or market value.

Deposit$230,000

Cash deposit or equity contribution.

Buying costs$25,000

Stamp duty, legal costs, inspections, and setup costs.

Monthly rent$3,350

Expected gross monthly rent.

Vacancy allowance3.00%

Expected lost rent from vacancy or non-payment.

Annual operating expenses$10,800

Rates, insurance, maintenance, management, strata, and other operating costs.

Loan interest rate6.05%

Annual rate for the investment loan.

Loan term30 years

Loan term used for debt service.

years

Property growth assumption3.00%

Annual capital growth assumption for total return context.

Decision Summary

Rental investment verdict

Needs caution

Estimated annual cashflow is $2,154, cap rate is 4.8%, and cash-on-cash return is 0.8% before tax.

Decision index

Watch

Key metric comparison

Annual cashflow$2,154

Gross rental yield6.8%

Cap rate4.8%

Cash-on-cash return0.8%

Debt service coverage1.08x

Annual cashflow

Healthy

$2,154

NOI after annual debt service, before income tax.

Gross rental yield

Healthy

6.8%

Annual rent compared with purchase price.

Cap rate

Watch

4.8%

NOI compared with purchase price, before financing.

Cash-on-cash return

Action

0.8%

Annual pre-tax cashflow compared with cash invested.

Debt service coverage

Watch

1.08x

NOI compared with annual loan repayments.

Growth-adjusted return

Healthy

7.8%

Cashflow plus assumed capital growth compared with cash invested.

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Assumptions

Review the assumptions behind the result.

NOI is rent less vacancy and operating expenses before debt service.
Cap rate is unlevered and excludes financing structure.
Cash-on-cash return includes annual debt service and initial cash invested.

How To Use The Result

Turn the output into a practical next step.

Use cap rate to compare the property itself.
Use cash-on-cash return to understand the financed investor outcome.
Review DSCR before relying on positive long-term appreciation assumptions.

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