Loan Free Rental Property Analyzer
Underwrite any rental deal in under a minute: monthly cash flow, net operating income, cap rate, and cash-on-cash return — all from one screen.
Purchase & financing
Income
Monthly expenses
| Effective monthly rent (after vacancy) | $0 |
| Mortgage payment (P&I) | $0 |
| Total monthly expenses | $0 |
| Annual net operating income (NOI) | $0 |
| Cap rate | 0% |
| Cash-on-cash return | 0% |
| Total cash invested (down + 3% closing) | $0 |
| Loan amount | $0 |
How it works
The mortgage payment uses standard amortization: M = P × r(1+r)n / ((1+r)n − 1). Effective rent = rent × (1 − vacancy). Operating expenses (tax, insurance, HOA, maintenance, management, other) exclude the mortgage. NOI = (effective rent − operating expenses) × 12. Cap rate = NOI ÷ purchase price. Cash-on-cash = annual cash flow ÷ total cash invested (down payment + ~3% closing costs).
Formula & worked example
Formula: Effective rent = rent × (1 − vacancy %). The mortgage P&I payment uses the standard loan formula on price − down payment. NOI = (effective rent − monthly operating expenses) × 12 and cap rate = NOI ÷ price. Monthly cash flow = effective rent − P&I − operating expenses, and cash-on-cash = annual cash flow ÷ cash invested, where cash invested = down payment + 3% of the price for closing costs.
Worked example: A $200,000 rental with 20% down and a 6.5%, 30-year loan: P&I is $1,011 a month on $160,000. Rent of $1,800 at 5% vacancy gives $1,710 of effective rent; $524 a month of expenses leaves $14,232 a year of NOI (a 7.1% cap rate) and $175 a month of cash flow — a 4.6% cash-on-cash return on the $46,000 invested.
When to use this
- A listing looks promising and you want cash flow, cap rate and cash-on-cash from one set of inputs before you call the agent.
- You are comparing two candidate rentals with different prices, rents and tax bills on equal terms.
- A seller's claim of great cash flow needs checking against a full expense list, vacancy included.
- You want to test whether a deal survives a lower rent or a higher rate before you are emotionally committed to it.
How to use it, step by step
- Enter the price, down payment percent, interest rate and loan term.
- Enter the monthly rent you have verified for the area, and a vacancy rate — 5% is one empty month roughly every year and a half.
- Fill in every monthly expense: tax, insurance, HOA, maintenance, other costs, and management as a percent of rent.
- Charge management even if you plan to self-manage, so the deal is judged as a business, not as a job you are buying.
- Read monthly cash flow, NOI, cap rate and cash-on-cash together — a deal that fails two of them rarely improves on closer inspection.
What the inputs mean
| Input | What it is | Typical values |
|---|---|---|
| Purchase price and down payment | What you pay and how much of it is your cash | Down payment commonly 20–25% on investor loans |
| Loan rate and term | The financing behind the mortgage payment | Investor rates usually above owner-occupier rates |
| Monthly rent and vacancy | Rent charged, and the share of the year it will not be collected | Vacancy 5–8% is a prudent planning band |
| Monthly operating expenses | Tax, insurance, HOA, maintenance, management and other costs | Management usually 8–10% of rent when outsourced |
Another worked example
A $240,000 purchase with 20% down leaves a $192,000 loan; at 6.25% over 30 years, principal and interest is $1,182 a month. Rent of $2,200 at 5% vacancy gives effective rent of $2,090. Monthly expenses are $275 of tax, $100 of insurance, $25 of HOA, $150 of maintenance, $176 of management at 8% of rent and $30 of other costs — $756 before the mortgage. The result: $152 a month of cash flow, $16,008 a year of NOI, a 6.7% cap rate and a 3.3% cash-on-cash return on the $55,200 invested, which is the down payment plus 3% of the price for closing costs.
Frequently asked questions
What makes a rental property a good deal?
Positive monthly cash flow after ALL expenses (including vacancy and maintenance reserves), in a market with stable or growing rents. Many investors target at least $200–$300/month cash flow per door on single-family rentals.
What is the 1% rule?
Monthly rent should be at least 1% of the purchase price (a $300,000 home renting for $3,000/mo). It's a quick screening filter, not a valuation — in expensive markets few deals pass it, so use the full analyzer above for real numbers.
Cap rate vs cash-on-cash — what's the difference?
Cap rate measures the property's unleveraged return (NOI ÷ price), so it's perfect for comparing properties regardless of financing. Cash-on-cash measures return on YOUR cash invested, so it reflects your leverage — the same property shows higher CoC with a smaller down payment.
Why does the analyzer add 3% of the price for closing costs automatically?
Cash invested is calculated as the down payment plus 3% of the purchase price, a standard stand-in for lender fees, title work and prepaids. If your market or loan type runs cheaper or dearer than that, the cash-on-cash figure moves with it — for an exact closing figure, the standalone cash-on-cash calculator lets you enter your real costs instead of the 3% estimate.
Does the cash flow count the equity I build as the loan is paid down?
No. The mortgage payment is treated entirely as an outflow, so the principal portion — which is quietly buying you a bigger share of the property each month — shows up as a cost, not a return. Cash flow, cap rate and cash-on-cash here are cash measures only; principal paydown and appreciation are additional returns you would add when judging the deal over years, not months.
How can cap rate look fine while monthly cash flow is negative?
Because cap rate ignores the loan and cash flow does not. A property can produce a healthy NOI and still lose money monthly if the mortgage payment — set by your down payment, rate and term — is larger than what is left after operating expenses. That gap is the financing failing the property, not the property failing: a bigger down payment or a cheaper loan closes it, at the cost of more cash in the deal.