Rental Property Calculator: Yield, Payback & Cash Flow

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Purchase price and monthly rent are required. The other fields make the estimate more realistic.

Scope: This is an unlevered, rent-based property analysis. Loan interest is not included. Rental-income tax is included only if you enter an estimated annual amount.

Display currency

Currency used for amounts

The currency changes display formatting only; it does not convert the amounts.

Initial investment

Property purchase price

Enter a valid property price greater than zero.

Acquisition and setup costs

Closing costs, agent fees, initial repairs, furnishings and similar upfront costs.

Enter an amount of zero or more.

Rent and annual expenses

Gross monthly rent

Enter a valid monthly rent greater than zero.

Annual vacancy rate

Enter a rate from 0 to 99.99.

Annual operating expenses

Maintenance, owner-paid fees, insurance, property tax and similar expenses.

Enter an amount of zero or more.

Estimated annual rental-income tax

Optional. The calculator does not calculate tax from any country's tax rules. Enter your own annual estimate if relevant.

Enter an amount of zero or more.

Projection assumptions

Annual rent growth

Enter a rate greater than -100 and up to 500.

Annual expense growth

Enter a rate greater than -100 and up to 500.

Annual property-value growth

Used only in the projection; it does not change the rent-based payback calculation.

Enter a rate greater than -100 and up to 500.

Annual inflation assumption

Used to express projected rental cash flow in today's money.

Enter a rate greater than -100 and up to 500.

Target net rental yield

Enter a rate from 0 to 100.

10-year nominal and real projectionAnnual view

Estimated projection based on the entered rent, expense growth, property growth and inflation assumptions
Year	Gross rent	Net rent	Real net rent	Cumulative net	Estimated property value
Waiting for calculation.

Sensitivity scenariosRent and expense changes

Alternative rent and expense scenarios at the same investment cost
Scenario	Monthly rent	Annual net rent	Net yield	Net payback
Waiting for calculation.

How should rental-property payback be interpreted?

Gross rent payback is a quick first-pass metric. A more realistic view uses the rental income left after acquisition costs, vacancy and annual operating expenses are considered.

Static vs. dynamic payback

Static payback assumes first-year net rent stays constant. Dynamic payback lets rent and expenses change each year and estimates when cumulative net rental income catches up with total invested capital.

Why is net yield calculated on total investment?

Closing costs, commissions, initial repairs and similar setup costs are real capital outflows. Ignoring them can overstate the apparent return.

What does the real result mean?

Nominal rent is the future cash amount. Real rent discounts that projected cash flow by the inflation assumption to express it in today's money.

Frequently Asked Questions

What is the difference between gross and net payback?

Gross payback uses only purchase price and gross rent. Net payback also includes acquisition costs, vacancy and annual expenses.

Is rental-income tax included?

Only if you enter an estimated annual rental-income tax amount. The calculator does not derive tax automatically from local law.

Are mortgage interest and property appreciation included?

Mortgage interest is not included. Property appreciation is shown only as a user-entered projection assumption and does not change rent-based payback.

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How should rental-property payback be interpreted?

Frequently Asked Questions

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