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Decision reportDecision summary
Rental Property ROI Calculator
Estimated annual cashflow is -$19,150, cap rate is 3.1%, and cash-on-cash return is -10.0% before tax.
Planning caution
This scenario is stretched because operating income does not cover debt service.
Decision index
High risk
Rental investment verdict
Key figures
Annual cashflow
-$19,150Gross rental yield
5.3%Cap rate
3.1%Cash-on-cash return
-10.0%Findings snapshot
What deserves attention first
These signals are the strongest points to review before relying on the result.
The property is cashflow negative before tax and relies on income support or growth.
Debt service coverage is thin and should be stress-tested.
The unlevered property yield is modest, so price or rent assumptions matter.
Status mix
Metric health
Green is healthier, yellow needs monitoring, and red needs action.
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Decision reportMetric dashboard
Relative strength of the main numbers
These bars compare the largest numeric signals in this report. Each value keeps its own unit, so use the chart as a visual guide rather than a like-for-like financial comparison.
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Decision reportMetric notes
What each result means
Each row explains the result in practical language and highlights whether it is healthy, worth watching, or needs action.
Annual cashflow
-$19,150ActionNOI after annual debt service, before income tax. This is the money left after the main commitments. A larger buffer usually means a safer plan. Against the other key figures in this report, it is marked action.
Gross rental yield
5.3%HealthyAnnual rent compared with purchase price. This is one of the main numbers behind the result. Against the other key figures in this report, it is marked healthy.
Cap rate
3.1%WatchNOI compared with purchase price, before financing. This shows how much the result changes if conditions become less favourable. Against the other key figures in this report, it is marked watch.
Cash-on-cash return
-10.0%ActionAnnual pre-tax cashflow compared with cash invested. This helps compare the potential reward with the risk and time involved. Against the other key figures in this report, it is marked action.
Debt service coverage
0.54xActionNOI compared with annual loan repayments. This shows how much existing debt is affecting the result. Against the other key figures in this report, it is marked action.
Growth-adjusted return
1.3%ActionCashflow plus assumed capital growth compared with cash invested. This helps compare the potential reward with the risk and time involved. It is marked action based on the entered assumptions.
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Decision reportFindings
Plain-English interpretation
These findings translate the numbers into decision points.
The property is cashflow negative before tax and relies on income support or growth.
Debt service coverage is thin and should be stress-tested.
The unlevered property yield is modest, so price or rent assumptions matter.
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Decision reportAction plan
What to do next
Recommended actions are based on the strongest signals in the result. Use them to decide what to check, change, or confirm.
Action 1
Reduce pressure before committing
- What it means
- The property is cashflow negative before tax and relies on income support or growth. Read this together with Annual cashflow (-$19,150) to see what is driving the result.
- Why it matters
- NOI after annual debt service, before income tax. This is the money left after the main commitments. A larger buffer usually means a safer plan.
- Next step
- Check one more conservative scenario, confirm the real figures, then decide whether to proceed, adjust the amount, or pause.
- Metric evidence
- Annual cashflow: -$19,150; Gross rental yield: 5.3%; Cap rate: 3.1%
Action 2
Prioritise debt pressure
- What it means
- Debt service coverage is thin and should be stress-tested. Read this together with Gross rental yield (5.3%) to see what is driving the result.
- Why it matters
- Annual rent compared with purchase price. This is one of the main numbers behind the result.
- Next step
- Check one more conservative scenario, confirm the real figures, then decide whether to proceed, adjust the amount, or pause.
- Metric evidence
- Annual cashflow: -$19,150; Gross rental yield: 5.3%; Cap rate: 3.1%
Action 3
Review decision signal 3
- What it means
- The unlevered property yield is modest, so price or rent assumptions matter. Read this together with Cap rate (3.1%) to see what is driving the result.
- Why it matters
- NOI compared with purchase price, before financing. This shows how much the result changes if conditions become less favourable.
- Next step
- Check one more conservative scenario, confirm the real figures, then decide whether to proceed, adjust the amount, or pause.
- Metric evidence
- Annual cashflow: -$19,150; Gross rental yield: 5.3%; Cap rate: 3.1%
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Decision reportScenario inputs
Values used in the calculation
These inputs are the basis of the report. If any value changes, regenerate the report before relying on the result.
Purchase price
Property purchase price or market value.$720,000Deposit
Cash deposit or equity contribution.$160,000Buying costs
Stamp duty, legal costs, inspections, and setup costs.$32,000Monthly rent
Expected gross monthly rent.$3,200Vacancy allowance
Expected lost rent from vacancy or non-payment.4.00%Annual operating expenses
Rates, insurance, maintenance, management, strata, and other operating costs.$14,200Loan interest rate
Annual rate for the investment loan.6.35%Loan term
Loan term used for debt service.30 yearsProperty growth assumption
Annual capital growth assumption for total return context.3.00%Assumptions
How to read 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.
Professional note
Before acting
This report is a decision-support summary based on the assumptions entered. It is not financial, tax, lending, or legal advice. Confirm product terms, fees, tax treatment, and policy settings before making a financial commitment.
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Decision reportTerms explained
Key terms used in this report
These definitions explain finance terms and strategies that appear in the result.
Stress test
A conservative scenario that tests the result after rates rise, costs increase, or conditions become less favourable.
Cap rate
Net operating income divided by property value. It measures the property return before financing.
Cash-on-cash return
Annual pre-tax cashflow compared with cash invested. It shows the investor return after financing.
Debt service coverage
Net operating income compared with annual debt repayments. Higher coverage means more room to absorb income or cost changes.