Rental Property ROI Calculator

Understanding your numbers

Gross yield tells you how a property performs independent of financing — useful for comparing deals against each other. Cash-on-cash return tells you how your actual invested cash is performing, which is what matters once you've financed the deal. A property can have a mediocre gross yield but a strong cash-on-cash return if you use leverage well — or the reverse, if financing costs eat the spread. As of mid-September 2026, investment-property mortgage rates typically run 0.5–0.75 points above owner-occupied rates, which averaged roughly 6.9% for a 30-year fixed loan.

Common questions

Many investors target 8–12% cash-on-cash, though this varies heavily by market and risk tolerance. Lower cost-of-living metros often deliver higher cash flow yields than expensive coastal cities, where investors more often bet on appreciation instead.

A common beginner mistake is only accounting for the mortgage payment. Vacancy, maintenance, property management (typically 8–10% of rent if outsourced), and repairs routinely consume 30–50% of gross rent over time — leaving them out overstates returns significantly.

No — this calculator focuses on operating cash flow and yield only. Depreciation deductions, potential appreciation, and loan paydown (which builds equity even in a break-even cash flow deal) are real benefits not reflected in the numbers above.

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