What the Rental Property Investment Calculator is for
Model a rental property's acquisition cash, financing, stabilized operations, replacement reserve, annual debt reduction, holding period, sale proceeds, and core equity returns.
It keeps income, operating costs, financing, invested cash, value, timing, and exit assumptions explicit so you can reproduce the result and compare genuinely consistent scenarios.
Calculation structure
Keep income, costs, and value in the right period
Property NOI = effective gross income − recurring operating expenses. Before-tax cash flow = property NOI − the entered replacement-reserve allowance − debt service. Final-year cash flow also includes net sale proceeds.
Visual explanation
See what drives the property result
Potential incomevacancy−operating costsCollected incomeKeep capacity and reporting periods consistentProperty NOI = effective gross income − recurring operating expenses. Before-tax cash flow = property NOI − the entered replacement-reserve allowance − debt service. Final-year cash flow also includes net sale proceeds.
Read the result correctly
Use the result with its boundaries
A 400,000 purchase with a 300,000 mortgage, 48,000 potential rent, 5% vacancy, 1,200 other income, and 14,000 recurring expenses produces 32,800 property NOI before reserves; the full timeline then applies financing and exit assumptions.
Property NOI is reported before replacement reserves. A separate analysis-adjusted income deducts the entered reserve allowance. Sale value, costs, reserve recovery, and financing are visitor-entered scenarios; tax, depreciation, rent growth, capital improvements, and live market data are not inferred.
Quick guide
How to use this calculator
Enter acquisition cash, financing, stabilized annual income, and recurring operating expenses.
Keep replacement reserves separate from property NOI, then review debt service and before-tax cash flow in the annual timeline.
Add a holding period and visitor-entered exit assumptions to see sale proceeds, equity multiple, total ROI, and annual periodic IRR.
Calculation method
Calculation method
Property NOI = effective gross income − recurring operating expenses. Before-tax cash flow = property NOI − the entered replacement-reserve allowance − debt service. Final-year cash flow also includes net sale proceeds.
The acquisition outflow occurs at time 0. Stabilized operations occur at each year-end, and sale proceeds are added once at the final year-end. Mortgage amortization and IRR are numerical estimates; no hidden market defaults are applied.
Worked example
Worked example
A 400,000 purchase with a 300,000 mortgage, 48,000 potential rent, 5% vacancy, 1,200 other income, and 14,000 recurring expenses produces 32,800 property NOI before reserves; the full timeline then applies financing and exit assumptions.
Property NOI = effective gross income − recurring operating expenses. Before-tax cash flow = property NOI − the entered replacement-reserve allowance − debt service. Final-year cash flow also includes net sale proceeds.
Supported inputs
Precision and limits
Visible input limits
Amounts accept up to 30 digits and 12 decimal places and are capped at 1e12 per input. Whole-number periods are capped at the page's stated range; rates are capped at 1000%.
International scope
No currency, tax regime, lease law, lender threshold, local market feed, appraisal, or jurisdiction-specific charge is assumed.
Decision boundary
Results are visitor-entered arithmetic scenarios, not appraisals, forecasts, loan approvals, legal or tax determinations, or investment recommendations.
Calculator-specific assumptions
Property NOI is reported before replacement reserves. A separate analysis-adjusted income deducts the entered reserve allowance. Sale value, costs, reserve recovery, and financing are visitor-entered scenarios; tax, depreciation, rent growth, capital improvements, and live market data are not inferred.
