Expected annual income after vacancy
$51,300
Free property analysis tool
Rental Property Calculator: estimate monthly cash flow, NOI, value, and returns.
Estimate how much rental income may remain each month after vacancy, recurring property costs, and an optional mortgage. Then test cap rate, NOI, property value, DSCR, and cash-on-cash return across downside, base, and upside scenarios. The calculator is free, public, and runs entirely in your browser.
No accountNo email gateBrowser-only calculationsUSD, EUR, and GBP
Your assumptions
Model an income-producing property.
Enter a stabilized rental case, purchase assumptions, cap-rate scenarios, and optional financing terms.
Privacy: calculations run in this browser. The property and financing inputs are not submitted to Fundamod by the calculator.
Illustrative output
Your estimated monthly cash flow
$562
Estimated cash left each month after vacancy, recurring property costs, and the modeled mortgage payment, but before income tax, major repairs, capital expenditure, and unexpected costs.
Rent and other income entered$4,500
Less vacancy allowance−$225
Less recurring operating costs−$1,200
Property income before mortgage$3,075
Less estimated mortgage payment−$2,513
Estimated monthly cash flow before tax$562
Annual property income before mortgage (NOI)
$36,900
Property yield at purchase price (going-in cap rate)
6.15%
Property yield on total acquisition cost
5.69%
Income-approach range
NOI capitalized at your selected rates.
Value = NOI ÷ cap rate
Downside
7.0%Implied value
$527.1K
$36,900 NOI ÷ 7.0%.
Base
6.0%Implied value
$615K
$36,900 NOI ÷ 6.0%.
Upside
5.0%Implied value
$738K
$36,900 NOI ÷ 5.0%.
Base-case interpretation
At a 6.0% cap rate, the illustrative income approach indicates $615,000. That is $15,000 above the assumed purchase price (2.5%).
This is a mechanical comparison from the assumptions entered. It does not establish market value or determine whether the property is suitable for purchase.
Loan amount
$390,000
Annual debt service
$30,153
Illustrative DSCR
1.22×
Return on cash invested (cash-on-cash)
2.61%
Equity invested$258,000
Pre-tax cash flow$6,747
Monthly debt service$2,513
What this tool does
It turns your rent, vacancy, operating-cost, cap-rate, purchase, and financing assumptions into transparent property metrics and valuation scenarios.
What it does not do
It does not verify market rent, select a defensible cap rate, inspect the property, model taxes, quote financing, or provide a certified appraisal.
Illustrative planning output only. Results depend entirely on the assumptions entered and do not represent verified market rent, market cap rates, a certified appraisal, lender underwriting, or professional advice.
Plain-English glossary
What the property investment terms mean.
Keep the professional definitions for comparability, but read them alongside the cash-flow question each metric actually answers.
Monthly cash flow before tax
The estimated cash left after vacancy, recurring operating costs, and the modeled mortgage payment. It excludes income tax, major repairs, capital expenditure, and unexpected costs.
Net operating income (NOI)
Annual property income after vacancy and recurring property-level expenses, but before mortgage payments, income tax, depreciation, and one-off renovation costs.
Going-in cap rate
Annual NOI divided by purchase price. It shows the property's yield at the price paid before financing and tax; it is not a mortgage interest rate.
Market cap-rate assumption
The yield investors may require for comparable properties. Dividing NOI by this rate gives an illustrative income-approach value. A lower rate produces a higher value.
Debt-service coverage ratio (DSCR)
NOI divided by annual mortgage payments. A result of 1.50× means modeled property income is 1.5 times the modeled annual debt service.
Cash-on-cash return
Annual cash flow after the modeled mortgage, before tax, divided by the cash invested upfront. It is not the same as total return or price appreciation.
Worked example
A $600,000 rental property with $36,900 of NOI.
The default example assumes $4,500 monthly rent, 5% vacancy, $14,400 annual operating expenses, $18,000 closing costs, and $30,000 upfront renovation. Direct capitalization at 7%, 6%, and 5% produces the illustrative range shown here.
| Case | Cap rate | Implied value | Gap to price |
|---|---|---|---|
| Downside | 7.0% | $527,143 | −$72,857 |
| Base | 6.0% | $615,000 | +$15,000 |
| Upside | 5.0% | $738,000 | +$138,000 |
Method
What the property calculator is doing.
1. Effective income
(Monthly rent + other income) × 12 × (1 − vacancy rate)
2. NOI
Effective gross income − property-level operating expenses
3. Implied value
Net operating income ÷ selected capitalization rate
4. Financing
NOI ÷ annual debt service; pre-tax cash flow ÷ cash equity
NOI and the cap rate must be defined consistently.
Direct capitalization converts expected NOI into a present value, but the output is only as useful as the income, expense, and cap rate evidence. Actual and pro forma income should not be mixed casually, and a cap rate derived from one NOI convention should be applied to a consistently prepared subject-property NOI.
The purchase price and total project cost answer different questions. This tool shows the going-in cap rate against purchase price and the net yield against purchase price plus closing and upfront renovation costs.
Financing is shown separately because debt service does not belong inside NOI. The calculator uses a standard amortizing principal-and-interest payment. Actual lender underwriting may use different net cash flow, reserves, stress rates, interest-only periods, fees, and coverage policies.
For a deeper review, open the real estate valuation service.
Read the result carefully
A mechanical model is a starting point, not due diligence.
Evidence the calculator cannot verify
- Lease quality, rent collection, and tenant concentration.
- Market rent, vacancy, concessions, and local supply.
- Property condition, deferred maintenance, and capex.
- Comparable sales, cap-rate basis, and transaction timing.
- Taxes, insurance, legal title, zoning, and local regulation.
What an analyst-reviewed model can add
- Evidence review and normalized operating assumptions.
- Comparable-sale and market-rent framing.
- Renovation timing, disruption, and downside cases.
- Debt-service, refinance, hold, and exit sensitivities.
- Written findings, caveats, and decision-focused next steps.
Questions
Real estate investment calculator questions.
What is going-in cap rate?
Going-in cap rate is the property's annual net operating income divided by the purchase price. It is a property yield before mortgage payments and income tax, not an interest rate or a forecast of total investment return.
What does monthly net cash flow mean in this calculator?
It is the estimated monthly property income after the vacancy allowance, recurring operating expenses, and the modeled mortgage payment, but before income tax, major repairs, capital expenditure, financing fees, and unexpected costs.
How does the real estate investment calculator estimate value?
It calculates net operating income from the rent, other income, vacancy, and operating expenses entered. It then divides NOI by each selected capitalization rate to produce illustrative downside, base, and upside income-approach values.
What is net operating income?
For this tool, NOI is annual effective gross income after the vacancy allowance, less annual property-level operating expenses. Mortgage payments, income tax, depreciation, and one-off renovation costs are excluded.
Why does a lower cap rate produce a higher value?
The direct-capitalization formula divides NOI by the cap rate. Holding NOI constant, a lower rate produces a higher indicated value and a higher rate produces a lower indicated value.
How is DSCR calculated?
The calculator divides NOI by estimated annual principal-and-interest debt service. Lenders may use different underwritten net cash flow, interest-only periods, reserves, stress rates, and policy adjustments, so this result is illustrative only.
How is cash-on-cash return calculated?
The tool divides annual pre-tax cash flow after estimated debt service by the estimated cash equity invested, including purchase price, closing costs, and upfront renovation costs less the modeled loan amount.
Does the calculator choose the correct market rent or cap rate?
No. Those are user-entered assumptions. A defensible analysis requires relevant property, lease, expense, condition, location, comparable, financing, and market evidence.
Is this a certified property appraisal or lending decision?
No. It is a free illustrative planning tool, not a certified appraisal, mortgage appraisal, survey, financing offer, investment recommendation, or regulated property valuation.
Are my property inputs sent to Fundamod?
No. The calculator performs the calculations in your browser and does not submit the property or financing inputs to Fundamod.
Method references
Primary guidance behind the definitions.
These sources support the concepts and formula definitions. They do not validate the calculator's default assumptions or turn the output into an appraisal or lender underwriting result.
From estimate to reviewed analysis
Need an analyst-reviewed property valuation model?
Share the property, decision, available rent and cost evidence, financing context, and desired output. Fundamod can confirm whether the case fits a valuation memo or custom property model.