CRE Calculators

Free Rental Property Calculator

Free, professional-grade rental property cash flow and underwriting analysis. Model gross rental revenue, operational expenses, debt coverage (DSCR), cap rate, and leveraged cash-on-cash returns with no paywalls or required sign-up.

1. Property Acquisition & Capital

$
%
≈ $56,000

2. Rental Income & Vacancy

$
≈ $28,000 / mo
$
%
Vacancy Loss: $16,800 | EGI: $319,200

3. Operating Expenses & NOI

$
Expense Ratio: 28.8% | NOI: $227,200

4. Mortgage & Financing Terms

%
$700,000
%
Pre-Tax Annual Cash Flow$57,048$4,754 / mo
CoC 7.55%
Net Operating Income$227,200
Going-In Cap Rate8.11%
DSCR Coverage1.34x
Break-Even Ratio82.13%
Loan Amount:$2,100,000 (75% LTV)
Annual Debt Service (ADS):$170,152 ($14,179/mo)
Total Cash Invested:$756,000
Cash-on-Cash (All-In):Down payment + Closing costs
7.55%
Cash-on-Cash (Down Payment):Pure down payment only
8.15%
Break-Even Occupancy (BEO):78.02%
Chained Underwriting Workflow
Send to Deal Analyzer for 5-Year UnderwritingSize Loan via Apartment Building Mortgage Calculator

100% Free & Unrestricted

Zero sign-up required, zero credit card prompts, and zero artificial paywalls. All calculations execute locally inside your browser for instant privacy and zero data leakage.

How to Underwrite Rental Property Cash Flow & Returns

A professional rental property financial analysis moves systematically through three levels of returns: 1. Top-Line Property Operations: Gross Potential Rent plus ancillary income (parking, laundry, storage), minus allowance for vacancy and bad debt, yields Effective Gross Income (EGI). Deducting real operating expenses (property taxes, insurance, repairs, management, utilities, capital reserves) yields Net Operating Income (NOI). 2. Financing & Debt Coverage: Deducting annual principal and interest debt service (ADS) from NOI reveals Pre-Tax Net Cash Flow. Lenders evaluate the Debt Service Coverage Ratio (DSCR = NOI / ADS) to ensure an adequate buffer (typically 1.25x). 3. Investor Yields: Unleveraged return is measured by the Capitalization Rate (Cap Rate = NOI / Purchase Price). Leveraged return on actual cash deployed is measured by Cash-on-Cash Return (CoC = Annual Cash Flow / Total Cash Invested).

The Core Rental Property Formulas

[1. Net Operating Income] NOI = Effective Gross Income (EGI) − Operating Expenses (OpEx) [2. Pre-Tax Net Cash Flow] Cash Flow = NOI − Annual Debt Service (ADS) [3. Unleveraged Cap Rate] Cap Rate = (NOI / Purchase Price) × 100% [4. Leveraged Cash-on-Cash Return] Cash-on-Cash = (Pre-Tax Cash Flow / Total Initial Cash Invested) × 100% [5. Debt Service Coverage Ratio] DSCR = NOI / Annual Debt Service
Effective Gross Income (EGI):Gross scheduled rental income plus other income minus vacancy and credit loss
Operating Expenses (OpEx):Taxes, insurance, property management, maintenance, utilities, and replacement reserves
Annual Debt Service (ADS):Total principal and interest mortgage payments over 12 months
Total Cash Invested:Down payment plus closing costs and upfront working capital reserves

Standard 24-Unit Rental Property Worked Example ($2.8M Valuation, $227,200 NOI)

Using our canonical 24-unit multifamily rental baseline ($2,800,000 purchase price, $336,000 gross scheduled rent, 5% vacancy, $92,000 OpEx): • Top-Line Operations: - Gross Potential Income (GPI): $336,000 - Vacancy Loss (5.0%): $16,800 - Effective Gross Income (EGI): $319,200 - Operating Expenses (28.82% of EGI): $92,000 - In-Place Net Operating Income (NOI): $227,200 - Going-In Cap Rate: 8.11% • Senior Debt Financing (75% LTV, 6.50% interest, 25-yr amort): - Loan Amount: $2,100,000 - Down Payment (25%): $700,000 - Closing Costs (2%): $56,000 - Total Initial Cash Invested: $756,000 - Monthly Mortgage Payment: $14,179 - Annual Debt Service (ADS): $170,152 - Lender DSCR: 1.34x (Exceeds standard 1.25x benchmark) • Bottom-Line Net Cash Flow & Yields: - Pre-Tax Annual Cash Flow: $227,200 − $170,152 = $57,048 ($4,754/month) - All-In Cash-on-Cash Return: 7.55% on $756,000 total cash invested - Down-Payment Cash-on-Cash: 8.15% on $700,000 down payment - Break-Even Ratio (BER): 82.13% (Break-Even Occupancy: 78.02%) *Note: This is a standardized educational underwriting case study for illustrative investment comparison.*

Frequently Asked Questions About Rental Property Calculators

Why is this rental property calculator completely free with no registration?

Most real estate software requires an email address or puts multi-family underwriting behind a subscription paywall. We believe basic financial literacy and accurate commercial underwriting math should be openly accessible to every investor, broker, and underwriter. All calculations execute locally inside your browser with zero data tracking.

What is the difference between Cap Rate and Cash-on-Cash Return?

Cap Rate measures the property unleveraged operational yield (NOI / Purchase Price) as if purchased entirely with cash, allowing objective comparison between different buildings and markets. Cash-on-Cash measures your actual cash return on the equity you personally invested after making debt service payments on your loan.

What expenses should be included in rental property operating expenses?

Operating expenses (OpEx) include property taxes, hazard/liability insurance, repairs & maintenance, professional property management fees, common area utilities, legal/accounting fees, and replacement reserves. OpEx does NOT include mortgage debt service, depreciation, or income taxes.

How do commercial lenders use DSCR when underwriting rental properties?

Commercial banks and agency lenders (Fannie Mae / Freddie Mac) require a minimum Debt Service Coverage Ratio (typically 1.20x to 1.25x). This ensures the property Net Operating Income covers the annual loan payments with a 20% to 25% safety margin to absorb tenant vacancies or rent fluctuations.

Related Rental & Investment Calculators

Apartment Building Mortgage CalculatorDeal Analyzer (5-Year Underwriting)DSCR CalculatorCap Rate Calculator