A familiar situation
Screen a rental property by reducing scheduled rent for vacancy and subtracting annual operating expenses. The rental property calculator estimates operating cash flow and yield before debt service and income tax.
How to use this calculator
- Enter property purchase price, monthly rent, vacancy allowance and the remaining inputs.
- Select Calculate to see the answer and its breakdown.
- Keep a scenario, change an input and compare the results.
Use consistent units and check the assumptions below before applying the result.
How rental property is calculated
Rent is reduced by the vacancy allowance before operating costs are subtracted. The result is before debt service, tax and major capital repairs. Formula: Effective rent = monthly rent × 12 × (1 − vacancy); cash flow subtracts annual operating expenses. Use the displayed details to inspect the intermediate amounts and replace example assumptions with terms from your own quote or records.
Effective rent = monthly rent × 12 × (1 − vacancy); cash flow subtracts annual operating expenses.A unit renting for $2,400 monthly with 5% vacancy yields $27,360 gross effective rent before expenses.
Assumptions & useful context
No financing, income tax or capital expenditure reserve is included.
Financial projections use your assumptions. Actual returns, lender terms, fees and tax rules can differ; these results do not guarantee a future outcome.
Frequently asked questions
Rental Property Calculator: what does the result include?
The estimate subtracts vacancy and annual operating costs from scheduled rent. It is before financing, tax and major capital spending.
Rental Property Calculator: which assumptions matter most?
No. It compares the estimated annual operating cash flow with cash invested and leaves changes in property value out.