Rental Property Calculator

This calculator finds cash flow, NOI, cap rate, and gross yield from a property's price, rent, and expenses. Set the mortgage payment field to $0 to see an all-cash return, or enter your actual payment to see how financing changes the picture.

For personal planning only — not financial advice.

Reviewed by CalculatorDrive Finance Editorial Board · Last updated

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Tax, insurance, maintenance, utilities, etc.

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Enter property price, monthly rent, and expenses, then click Calculate to see cap rate, NOI, cash flow, and breakdown chart.

The short answer

On a $350,000 property renting for $2,500/month with $800/month in expenses, cap rate is 5.4% and gross yield is 8.57% — two different numbers because gross yield ignores expenses entirely. With no mortgage entered, monthly cash flow is a healthy $1,575. Add a $2,000/month mortgage payment and cash flow flips to -$425 — the same property, profitable unlevered but underwater once financed.

Key takeaways

  • This calculator takes your monthly mortgage payment as a direct input — enter $0 to see an unlevered (all-cash) return, or your actual payment to see the levered picture.
  • Gross yield (8.57% here) only divides rent by price. Cap rate (5.4%) nets out operating expenses first — always check both, since gross yield alone overstates true return.
  • The same $350,000 property swings from +$1,575/month cash flow with no mortgage to -$425/month with a $2,000 mortgage payment — a reminder that financing terms can make or break a deal that looks fine on paper unlevered.
  • NOI ($18,900/year in this example) is the number that feeds both cap rate and, once debt service is subtracted, cash flow — get comfortable calculating it before trusting either ratio.

Cap rate vs. gross yield

Gross yield = annual rent ÷ price = $30,000 ÷ $350,000 = 8.57%

NOI = effective income − expenses = $28,500 − $9,600 = $18,900

Cap rate = NOI ÷ price = $18,900 ÷ $350,000 = 5.4%

Gross yield is the fastest, roughest screening number — just rent divided by price — and it is easy to compute for any listing without knowing expenses. But it ignores vacancy, taxes, insurance, and maintenance entirely, so it always overstates the real return. Cap rate takes those costs into account by starting from NOI instead of gross rent, which is why it lands nearly 3.2 percentage points lower in this example (5.4% vs. 8.57%). When comparing properties, gross yield can rank two deals in the wrong order if their expense ratios differ — cap rate is the more reliable number.

How the mortgage input changes everything

Unlike calculators that build a mortgage payment from a loan amount and rate, this one asks for your monthly mortgage payment directly — which makes it easy to see exactly how financing changes an otherwise identical deal:

Scenario Monthly Cash Flow
All-cash (no mortgage)$1,575.00
$2,000/month mortgage-$425.00

Cap rate and gross yield never change with the mortgage input — they are both calculated before debt service. Only cash flow moves. That separation is useful: it lets you evaluate whether a property is fundamentally sound (via cap rate) independent of how you plan to finance it, then layer your actual or hypothetical mortgage payment on top to see what it does to monthly cash flow.

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Frequently Asked Questions

What is cash flow on a rental property?

Cash flow is rental income minus all operating expenses and debt service. On a $350,000 property renting for $2,500/month with $800/month in expenses and no mortgage, monthly cash flow is $1,575. Add a $2,000/month mortgage payment and it flips to -$425 — the same property, positive unlevered but negative once financed.

What is a good cap rate for rental property, and how does it differ from gross yield?

Cap rate equals net operating income divided by property value — 5.4% in the example above. Gross yield only divides rental income by price, ignoring expenses entirely, which is why it reads higher: 8.57% on the same numbers. Compare cap rates to similar properties in the same market, and always check both figures rather than gross yield alone.

What expenses do landlords often underestimate?

Vacancy, maintenance, capital repairs, property management fees, insurance, and turnover costs add up quickly. Many investors budget 5–10% of rent for vacancy and 1–2% of value annually for maintenance.

How does leverage affect rental property returns?

A mortgage amplifies returns when property values rise and cash flow is positive, but it also magnifies losses in downturns and when rents fall short of expenses. Higher leverage means higher risk alongside potential reward.

When should I consult a real estate attorney or CPA?

Get legal advice on lease structures, entity ownership, and local landlord-tenant law. A CPA helps with depreciation, passive loss rules, and tax reporting on rental income.

How do I use this rental property calculator?

Enter the property price, expected monthly rent, monthly operating expenses, vacancy rate, and your monthly mortgage payment (enter $0 for an all-cash purchase). Results show cash flow, NOI, cap rate, and gross yield instantly.

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