Your rental numbers
The numbers already filled in are examples only, not Cleveland market data or a quote. Replace them with your own.
Estimate
This is an estimate from the numbers you enter, not an appraisal, a loan approval or advice. Confirm rent with comparable listings, taxes with the county auditor, and insurance and loan terms with written quotes.
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Paste a property address or a Zillow or listing link, and the A.I. Deal Assistant estimates ARV from recent comps, a rehab number and projected flip profit. The free plan includes 10 searches with no credit card. Pro Solo is $47/month, and your first month is $1 with code LAUNCH1 through Sunday, November 8.
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How the calculator works
The loan is the purchase price minus your down payment. The monthly mortgage is the standard principal-and-interest payment for that loan, rate and term. Taxes, insurance and escrow aren't in that number, because they're counted separately below.
Income is monthly rent plus other income, minus the vacancy allowance. Operating expenses are taxes and insurance (entered per year and split by 12), repairs and CapEx as a percentage of rent, management as a percentage of the rent you actually collect, and any utilities and HOA dues you pay. Income minus operating expenses is NOI. NOI minus the mortgage is cash flow.
Cap rate is annual NOI divided by the purchase price. Total cash invested is your down payment plus closing and rehab costs, and cash-on-cash return is annual cash flow divided by that cash. The 1% rule compares monthly rent with the purchase price. The DSCR estimate is NOI divided by the mortgage payment.
Why vacancy and CapEx belong in the numbers
A rental that's full today will turn over eventually, and roofs, furnaces and water heaters wear out on their own schedule. Setting money aside for both each month shows whether the deal still works when those costs arrive, not just in a good month. Try a higher vacancy or repair percentage to see how much room the deal has.
Common questions
What is rental cash flow?
Cash flow is what is left each month after the property pays for everything: vacancy, taxes, insurance, repairs, reserves, management, utilities, HOA and the mortgage. Positive cash flow means the rent covers the property with money left over. Negative cash flow means you add money each month to keep it.
What is the difference between NOI and cash flow?
Net operating income (NOI) is income after vacancy and operating expenses but before the mortgage. Cash flow is NOI minus the mortgage payment. NOI describes the property itself, and cash flow describes your deal with your financing.
What does cap rate tell me?
Cap rate is annual NOI divided by the purchase price. It lets you compare properties as if each were bought with cash, so financing doesn’t skew the comparison. There is no single good cap rate. It changes by neighborhood, property condition and risk, so compare it with similar properties in the same area.
How is cash-on-cash return different from cap rate?
Cash-on-cash return is your annual cash flow divided by the cash you actually put in: the down payment plus closing and rehab costs. It includes your loan, so two buyers of the same house can get very different cash-on-cash returns. Cap rate ignores financing.
What is the 1% rule, and should I rely on it?
The 1% rule is a quick screen: monthly rent should be at least 1% of the purchase price. A $120,000 house would need about $1,200 a month. It’s only a first filter. It ignores taxes, insurance, condition and interest rates, so a property can pass it and still lose money, or miss it and still work. Run the full numbers either way.
What is DSCR?
The debt service coverage ratio (DSCR) is NOI divided by the mortgage payment. At 1.00 the property’s income just covers the loan. Below 1.00 it doesn’t. Lenders that underwrite on rental income set their own minimums and may calculate it differently from this estimate, so ask your lender how they figure it.