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Rental Property ROI Calculator

Estimate the full return on a rental property — NOI, annual cash flow, cash-on-cash return and total ROI including appreciation and net sale proceeds. Operating expenses, debt service and capital costs are kept separate so mortgage principal is never double-counted.

Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.

Purchase & financing
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Rental income
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Monthly operating expenses
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Exit assumptions
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Total ROI

Enter a purchase price and your cash invested (down payment, closing, renovation).

What is rental property ROI?

Rental property ROI (return on investment) measures how much you earn relative to the cash you put in. A complete view combines two things most quick calculators miss: the cash flow you collect each year and the profit you realise when you sell. This calculator brings both together into a total ROI and an annualized ROI.

How the calculation works

  • NOI = vacancy-adjusted annual rent − annual operating expenses
  • Annual cash flow = NOI − annual debt service (your mortgage payment)
  • Cash invested = down payment + closing costs + renovation
  • Cash-on-cash = annual cash flow ÷ cash invested
  • Sale proceeds = projected value − selling costs − remaining loan balance
  • Total profit = cumulative cash flow + sale proceeds − cash invested

Operating expenses vs debt service vs capital costs

Keeping these separate is what makes the result trustworthy. Property tax, insurance, maintenance, management and HOA are operating expenses and feed NOI. Your mortgage payment is debt service — its principal portion builds equity, so it is not an expense. Closing and renovation costs are capital you invested up front, not annual costs.

Related calculators

Drill into a single metric with the cash-on-cash return calculator, cap rate calculator or property cash flow calculator, or compare the headline number with the broader real estate ROI calculator.

Frequently asked questions

What is a good ROI on a rental property?

It depends on your market and risk tolerance, but many investors target a cash-on-cash return of 8% or more and a total ROI that comfortably beats safer alternatives. Compare the estimate here against local deals rather than a fixed benchmark.

Does this calculator include the mortgage?

Yes. It reuses the same amortization math as our loan calculators to work out your monthly payment, treats the payment as debt service (not an operating expense), and subtracts the remaining loan balance from your sale proceeds so principal is never double-counted.

What is the difference between cash-on-cash return and total ROI?

Cash-on-cash return measures your annual pre-tax cash flow against the cash you invested. Total ROI also includes appreciation and net proceeds when you sell, so it reflects the full return over your holding period.

Are the results guaranteed?

No. Every figure is an estimate based on your inputs and assumptions such as appreciation and vacancy. Property values, rents and costs change, so treat the results as planning estimates, not financial advice.

Related calculators

Cash-on-Cash Return

Measure annual pre-tax cash flow against the cash you actually invested.

Cap Rate

Compute capitalization rate from NOI and value, or solve for value or NOI.

Property Cash Flow

Estimate monthly and annual rental cash flow after expenses and mortgage.

Real Estate ROI

Combine cash flow, appreciation and sale into total ROI on cash invested.

Rental Yield

Work out gross and net rental yield, or the rent needed for a target yield.

Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Results are estimates based on your inputs and assumptions. Appreciation and rents are not guaranteed. This is not financial or investment advice.