Rental Property ROI Calculator
Estimate your rental property's monthly cash flow, cap rate, and long-term appreciation. See how leverage and income work together to build lasting wealth.
10-Year Projection
Cumulative cash flow vs. equity gained from appreciation.
Year-by-Year Breakdown
| Year | Property Value | Equity Gained | Annual Cash Flow | Total Return |
|---|
How This Works
Return on Investment (ROI)
ROI measures how effectively your down payment generates profit. It factors in rental income, operating expenses, and your mortgage payment — giving you a true picture of cash-on-cash return.
Cap Rate
The capitalization rate measures property performance independent of financing. Calculated by dividing annual net operating income by purchase price, it lets you compare properties across markets on equal footing.
The Power of Leverage
Real estate lets you control a large asset with a fraction of its value. As the property appreciates, your entire equity position grows — not just your down payment — amplifying your true return over time.