How to use the Rental Property Calculator
Estimate monthly cash flow from purchase price, use loan, down payment with the Rental Property Calculator. Use it as a planning baseline, then compare the estimate with current rates, fees, taxes, and provider terms.
Step by step
- For the Rental Property example, select Rental Property and enter purchase price, use loan, down payment, interest rate, loan term, and the remaining settings listed in the worked example. Keep each value in the unit displayed beside its field.
- Review the selected Rental Property workflow and inputs, then read monthly cash flow in the result panel.
- Change one Rental Property assumption at a time to compare scenarios. Use Reset to restore this tool's worked example values.
How the calculation works
Models effective rental income, operating expenses, debt service, cash investment, appreciation, and selling costs. Repair and known-sale-price switches control the active assumptions.
Worked example
To reproduce the Rental Property worked example, reset the calculator. Select the Rental Property workflow. Use purchase price $300,000; use loan Yes; down payment $60,000; interest rate 6 %; loan term 30; closing cost $9,000; repair cost $0; value after repairs $320,000; property tax 3,600 $/year; total insurance 1,800 $/year; hoa fee 0 $/month; maintenance 1 %; other costs 0 $/month; monthly rent $2,500; other monthly income $0; vacancy rate 5 %; management fee 8 %; value appreciation 3 %; sell price $0; holding length 10 years; cost to sell 6 %; need repairs Yes; do you know the sell price No. The result is monthly cash flow of $46.08. Net operating income: $17,820.00/year. Review the displayed units before comparing the result.
Understanding the result
The Rental Property reports monthly cash flow. Use it as a planning baseline, then compare the estimate with current rates, fees, taxes, and provider terms. Planning estimate only. Rates, fees, taxes, eligibility rules, timing, and provider terms can change the result.
How to check the answer
Check the Rental Property result by entering the same purchase price, use loan, down payment in an independent statement, lender, provider, or official tool. Change one input and confirm that monthly cash flow moves in the direction implied by Models effective rental income, operating expenses, debt service, cash investment, appreciation, and selling costs. Repair and known-sale-price switches control the active assumptions.
Common questions
What does the Rental Property calculate?
Estimate monthly cash flow from purchase price, use loan, down payment with the Rental Property Calculator.
Which inputs does the Rental Property example use?
The worked example uses purchase price, use loan, down payment, interest rate, loan term, and the remaining settings listed in the worked example in the Rental Property workflow. Other workflows can show different fields. Keep the chosen workflow and units with the result when comparing calculations.
Is the Rental Property result exact?
Planning estimate only. Rates, fees, taxes, eligibility rules, timing, and provider terms can change the result. Recheck purchase price, use loan, down payment and use monthly cash flow only for a decision where that level of precision is appropriate.