Will a rental property actually make money after the mortgage and operating costs? This calculator estimates cash flow, gross yield, and net operating yield so you can judge whether an investment property looks attractive.
How to use this calculator
- Enter purchase price, down payment, and loan interest rate.
- Enter expected monthly rent and annual property tax, insurance, and maintenance.
- Set a vacancy rate to account for empty periods.
- Review cash flow, yields, and the rental deal stress check (break-even rent, break-even vacancy, and +1%/+2% rate scenarios).
Formula
Monthly cash flow = Rent − Mortgage − Operating expenses − Vacancy loss. Gross yield = Annual rent ÷ Purchase price. Net operating yield = (Rent after vacancy − Operating expenses) ÷ Purchase price, before debt service. Break-even rent and vacancy solve for zero monthly cash flow; rate stress recomputes the 30-year mortgage at +1% and +2%.
Example
A $275,000 property with $2,200/month rent, $55,000 down at 7%, and $6,600/year in operating costs at 5% vacancy may produce modest positive or negative cash flow depending on your local market.
Frequently asked questions
What is a good gross yield?
Many investors look for 6–10% gross yield depending on market. High-appreciation markets often accept lower yields.
Does this include property management?
No. Add management fees (often 8–10% of rent) to maintenance or reduce rent for a conservative estimate.
What does the rental deal stress check show?
It estimates how much room the deal has before monthly cash flow turns negative: the break-even monthly rent at your vacancy assumption, the highest vacancy rate that still breaks even, and cash flow if the mortgage rate rises by 1% or 2%.