Rental Property ROI Calculator

This calculator follows a rental property from purchase through to sale instead of stopping at the first year. You enter the price and the financing, the rent and the monthly running costs, the growth rates you expect and how long you mean to hold before selling. It returns the total return, the annualised return as an internal rate of return, the equity multiple, and the profit split into cash flow, appreciation, the principal the rent repaid and the costs of buying and selling. Those growth rates decide most of the answer, so run it once with pessimistic ones before you trust it.

This is the whole-hold version: it carries rent, costs and value forward year by year, sells at the end, and splits the profit into cash flow, appreciation and loan paydown. For the first-year cash flow and cap rate on their own, use the rental property calculator.

Purchase Price ($) *

Down Payment (%)

Mortgage Interest Rate (%)

Leave at zero for a cash purchase.

Loan Term (years)

Closing Costs ($)

Repairs Before Letting ($)

Monthly Rent in Year One ($) *

Vacancy and Credit Loss (%)

Operating Costs per Month in Year One ($)

Taxes, insurance, maintenance, the capital reserve, management, HOA and any utilities you pay. Not the mortgage. The rental property calculator builds this figure up line by line if you do not have it.

Rent Growth per Year (%)

Expense Growth per Year (%)

Property Appreciation per Year (%)

Years Held Before Selling *

Costs of Selling (% of the sale price)

Agent commission, transfer taxes and the concessions a buyer asks for.

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