Rental property calculator for cash flow, equity and sale
Enter price, financing, rent, vacancy, operating expenses and holding assumptions. HitEquals produces annual cash flow, loan balance, property value, equity and estimated sale proceeds.
Inputs used by this calculator
Rental Property Calculator uses the fields below. The starting values reproduce the page example; replace them with values from the same units and time period before using the result.
| Input | Starting example | Accepted value | How it is used |
|---|---|---|---|
| Purchase price (USD) | 350,000 | 1 to 1000000000000 | Supplies the purchase price (usd) quantity used by the published equation or result breakdown. |
| Down payment (USD) | 70,000 | 0 to 1000000000000 | Supplies the down payment (usd) quantity used by the published equation or result breakdown. |
| Mortgage interest rate (%) | 6.5 | 0 to 100 | Supplies the mortgage interest rate (%) quantity used by the published equation or result breakdown. |
| Mortgage term (years) | 30 | 1 to 50 | Supplies the mortgage term (years) quantity used by the published equation or result breakdown. |
| Monthly scheduled rent (USD) | 3,500 | 0 to 1000000000 | Supplies the monthly scheduled rent (usd) quantity used by the published equation or result breakdown. |
| Vacancy allowance (%) | 5 | 0 to 100 | Supplies the vacancy allowance (%) quantity used by the published equation or result breakdown. |
| Monthly operating expenses (USD) | 1,200 | 0 to 1000000000 | Supplies the monthly operating expenses (usd) quantity used by the published equation or result breakdown. |
| Annual rent and expense growth (%) | 2 | 0 to 50 | Supplies the annual rent and expense growth (%) quantity used by the published equation or result breakdown. |
| Annual property appreciation (%) | 3 | -50 to 50 | Supplies the annual property appreciation (%) quantity used by the published equation or result breakdown. |
| Holding period (years) | 10 | 1 to 50 | Supplies the holding period (years) quantity used by the published equation or result breakdown. |
| Selling costs (%) | 6 | 0 to 30 | Supplies the selling costs (%) quantity used by the published equation or result breakdown. |
Rental property cash flow
Scheduled rent is reduced by vacancy, then operating expenses and debt service are subtracted. Principal paid is financing cash flow, not an operating expense.
NOI and cap rate
Net operating income excludes mortgage payments. Cap rate divides first-year NOI by purchase price.
NOI=collected rent−operating expensescap rate=NOI/purchase priceMortgage and equity
Each monthly mortgage payment is split between interest and principal. Equity grows when the balance falls or the modeled property value rises.
Sale scenario
At the holding period, estimated selling costs and remaining loan balance are subtracted from the modeled property value. Taxes and depreciation recapture are outside this calculator.
Tax and expense limits
IRS Publication 527 lists expenses such as maintenance, insurance, taxes, interest and management fees, while improvements and depreciation follow separate rules. Use a tax professional for a return.
What the Rental Property Calculator answers
Model rental cash flow, mortgage balance, property value, equity and sale proceeds.
Use Rental Property Calculator when you know Purchase price (USD), Down payment (USD), Mortgage interest rate (%), Mortgage term (years), Monthly scheduled rent (USD), Vacancy allowance (%), Monthly operating expenses (USD), Annual rent and expense growth (%), Annual property appreciation (%), Holding period (years) and Selling costs (%) and need the relationship expressed by the published equation.
Core rental measures
| Measure | Includes debt service? |
|---|---|
| NOI | No |
| Cap rate | No |
| Cash flow | Yes |
| Equity | Loan balance |
Frequently asked questions
Does operating expense include the mortgage?
No. Enter property operating costs; mortgage payments are calculated separately.
Is depreciation included?
No. Tax depreciation depends on basis, allocation and applicable rules.
What does vacancy mean?
It is the share of scheduled rent assumed uncollected.
Does appreciation guarantee a sale price?
No. It is a scenario and property values can fall.
Are closing costs included?
Selling costs are included; purchase closing costs are not.
What question does this Rental Property Calculator answer?
Model rental cash flow, mortgage balance, property value, equity and sale proceeds.
What to keep in mind
Excludes income tax, depreciation, closing costs, capital improvements and irregular repairs unless included in expenses.
Results are rounded for display in US format, with money in dollars and cents; CSV exports keep full calculation precision. This is a calculation summary, not an official certificate.