Rental Property ROI Calculator - Free Investment Analysis
Calculate cash-on-cash return, cap rate, and NOI for rental properties. Include all costs and compare to stock market returns. 100% free, instant results.
Quick Answer
To calculate rental property ROI, use Practical Web Tools' free Rental Property Calculator at practicalwebtools.com. Enter purchase price, down payment, rental income, and expenses to see cash-on-cash return, cap rate, and NOI. The calculator also compares rental returns to stock market investing.
Key Facts about Rental Property ROI Calculator:
- Calculates cash-on-cash return, cap rate, and net operating income (NOI) for rental properties
- Input parameters include purchase price, down payment, rental income, and all operating expenses
- 100% free with no signup - essential for real estate investors
- All financial data stays private - calculations processed locally in browser
- Good cap rates: 4-6% safe, 6-8% average, 8%+ higher risk; cash-on-cash target 8-12%
- Includes stock market comparison to help evaluate investment alternatives
Why Use Our Rental Property ROI Calculator?
Comprehensive rental property analysis:
Cash-on-Cash Return
Calculate your actual return on invested capital.
Cap Rate
Determine property value and income potential.
NOI Calculation
Net Operating Income with all expenses included.
Stock Comparison
Compare rental returns to stock market investing.
Instant Analysis
Get comprehensive results immediately.
Private
Your investment data stays on your device.
How to Rental Property ROI Calculator in 3 Easy Steps
Analyze your rental property:
Enter Property Details
Purchase price, down payment, and financing terms.
Add Income & Expenses
Rent, vacancy, maintenance, property management, taxes.
See ROI Analysis
Cash-on-cash return, cap rate, NOI, and comparisons.
Why Calculate Rental Property ROI?
Evaluate investment potential
Compare properties objectively
Account for all costs
Make data-driven decisions
Common Use Cases for Rental Property ROI Calculator
Essential for:
Frequently Asked Questions
Everything you need to know about our rental property roi calculator
How do I calculate rental property ROI and cash-on-cash return?
Cash-on-cash = annual cash flow / cash invested; Practical Web Tools calculates all metrics.
Cash-on-cash return = Annual pre-tax cash flow / Total cash invested. Enter purchase price, down payment, rent, and expenses. Our calculator computes cash-on-cash return, cap rate, and NOI.
What is the best free rental property ROI calculator 2025?
Practical Web Tools Rental ROI Calculator - free, all metrics, expense estimates, stock comparison, 100% private.
Our rental property ROI calculator is the best free option in 2025 because it calculates all key metrics (cash-on-cash, cap rate, NOI), includes realistic expense estimates, compares to stocks, and keeps your data private.
What is a good cap rate for rental property?
4-6% safe, 6-8% average, 8%+ higher risk/reward; urban typically lower than rural.
Cap rates vary by location and property type. Generally, 4-6% is considered safe, 6-8% is average, and 8%+ indicates higher risk/reward. Urban areas typically have lower cap rates than rural areas.
What is a good cash-on-cash return for rental property?
8-12% is good; compare to stocks (historically 7-10%).
A good cash-on-cash return is typically 8-12%. Higher returns are possible but may involve more risk or management intensity. Compare to stock market returns (historically 7-10%) for context.
How do I calculate NOI for rental property?
NOI = Gross rent - operating expenses (taxes, insurance, maintenance, management, vacancy).
NOI (Net Operating Income) = Gross rental income - Operating expenses. Operating expenses include property taxes, insurance, maintenance, property management, and vacancy allowance. NOI excludes mortgage payments.
What expenses should I include in rental property analysis?
Taxes, insurance, maintenance (1-2%), vacancy (5-10%), management (8-10%), HOA, utilities, CapEx.
Include: property taxes, insurance, maintenance (1-2% of value), vacancy (5-10%), property management (8-10%), HOA fees, utilities paid by landlord, and capital expenditure reserves.
Is rental property a better investment than stocks?
Depends - rentals offer leverage/tax benefits but need management; stocks offer liquidity/passive ownership.
Both have advantages. Rentals offer leverage, tax benefits, and tangible assets but require active management. Stocks offer liquidity, diversification, and passive ownership. Our calculator helps compare returns.
What vacancy rate should I use for rental property analysis?
5-8% stable markets, 8-10% average, 10-15% high turnover areas.
Use 5-8% for stable markets with high demand, 8-10% for average markets, and 10-15% for higher turnover areas. Being conservative helps ensure accurate cash flow projections.
Still have questions? Try the tool yourself!
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