207 Rental Property Calculations
Every metric you need to analyze a rental property investment, from basic income to complex multi-year projections.
Standard
Standard calculations using multiple inputs and intermediate values. Core analysis metrics.
Forced Appreciation
Value added to a property above its natural market appreciation — either by buying below the after-repair value (ARV) or by making improvements, renovations, or upgrades after purchase.
Other Expense 1
User-defined additional monthly expense for miscellaneous costs not covered by standard expense categories.
Other Expense 2
Second user-defined additional monthly expense for miscellaneous costs not covered by standard expense categories.
Extra Principal Payment
Additional principal payment made each month beyond the required mortgage payment to accelerate loan payoff.
6-Month Reserves
Six months of operating reserves: enough to cover expenses, debt service, and PMI for half a year.
+R12 Reserves + Total Invested
Total capital deployed including 12 months of reserves plus all invested capital.
Debt Paydown Breakeven Rent
The minimum monthly rent at which this property breaks even when mortgage principal paydown and depreciation tax savings are counted as economic benefits.
Depreciation Breakeven Rent
The minimum monthly rent at which this property breaks even when depreciation tax savings alone (but not mortgage principal paydown) are counted as a benefit.
Net Operating Income
Income remaining after all operating expenses but before debt service.
Self-Managed Breakeven Rent
The minimum monthly rent at which this property generates positive cash flow when self-managed — no depreciation benefits or principal paydown needed to justify the investment.
Managed Breakeven Rent
The minimum monthly rent at which this property generates positive cash flow even with professional property management — the highest breakeven threshold on the Cash Flow Power Meter™.
Rent Resiliency (Dollars)
Dollar amount of rent cushion above the managed breakeven point — how much rent could drop before becoming cash-flow negative.
Cash on Cash Return
Annual cash flow divided by total cash invested.
Rent Resiliency (Percent)
Percentage of current rent that serves as cushion above the managed breakeven point.
Cash Flow Return on Equity
Annual cash flow as a percentage of current equity.
Appreciation Return on Equity
Annual appreciation as a percentage of current equity.
Debt Pay Down Return on Equity
Annual principal paydown as a percentage of current equity.
Gross Depreciation Return on Equity
Annual depreciation deduction as a percentage of current equity.
Cash Flow from Depreciation Return on Equity
Tax savings from depreciation as a percentage of current equity.
Yield on Cost
NOI divided by total all-in cost including closing and rehab.
Total Operating Expenses
Sum of all property operating costs (taxes, insurance, management, maintenance, CapEx, HOA, utilities)
Total Expenses
All annual costs including operating expenses and debt service.
Total Expense Per Unit Per Year
Total annual expenses (including debt service) per unit.
Loan to Value Ratio
Loan amount as a percentage of property value.
Monthly Principal Payment
Principal portion of the first month's mortgage payment.
Principal Paydown
Mortgage principal reduction from payments during the selected period.
Equity From Paydown
Equity gained from mortgage principal payments during the current year.
Drop PMI LTV
The loan-to-value ratio at which Private Mortgage Insurance is automatically canceled.
Remaining Mortgage Balance
Current remaining principal balance on the mortgage based on the actual number of months since purchase.
Cumulative Principal Paydown
Total mortgage principal paid down over the actual ownership period.
Value Based on Cap Rate
Property value estimated by dividing NOI by the cap rate.
Value Based on GRM
Property value estimated using the gross rent multiplier.
Cumulative Cash Flow
Total cash flow before tax accumulated over the actual ownership period.
Appreciation
Total dollar value of property appreciation — combining natural market-driven appreciation (organic) and value added through owner improvements (forced).
Cumulative Negative Cash Flow
Total cash subsidized into the property over the actual ownership period — the sum of all years where cash flow before tax was negative.
Cost Basis
Total cost basis for tax purposes (purchase + closing + improvements).
True Net Equity™
Equity remaining after accounting for the cost to access it through refinancing.
Accumulated Depreciation
Total depreciation deducted over the actual ownership period, based on the purchase date.
Total Wealth Building
Combined wealth from cash flow, appreciation, and principal paydown over the actual ownership period.
Total Cash to Close
Cash needed at the closing table to acquire the property.
Total Cash Invested
Total cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.
All-In Cost Per Unit
Total acquisition cost (including closing and rehab) per unit.
All-In Cost Per Square Foot
Total acquisition cost per square foot.
Fifty Percent Rule Estimate
Estimated annual cash flow assuming 50% of rent goes to expenses.
Years Owned
Time elapsed since the property was purchased, calculated from the purchase date to today.
Equivalent Bond Yield
Cash-on-cash return comparable to bond yields.
Equivalent Savings Yield
Cash return comparable to savings account interest rates.
Income Per Hour of Management
Annual cash flow divided by annual management hours.
Profit If Sold
Net profit if sold today, based on actual years owned.
Return If Sold
Net sale profit as a percentage of initial cash invested, based on actual years owned.
Two-Input Ratio
Ratios comparing two property inputs. Essential screening and comparison metrics.
One Month of Reserves
Monthly amount needed for one month of operating expenses, debt service, and PMI.
+R6 Return in Dollars
Annual dollar return earned on a 6-month reserve fund at 1%.
+R6 Reserves + Total Invested
Total capital deployed including both the property investment and 6-month reserves.
+R12 Return in Dollars
Annual dollar return earned on a 12-month reserve fund at 8%.
Gross Potential Rent
Total annual rental income assuming full occupancy.
Effective Gross Income
Actual expected income after vacancy and other income.
Revenue Per Unit
Effective gross income divided by the number of units.
Income Per Square Foot
Effective gross income divided by total square footage.
Rent to Value Ratio
Monthly rent as a percentage of purchase price.
Gross Rent Multiplier
Property value divided by gross potential rent.
Other Income
Monthly income from sources other than rent (parking, laundry, storage, etc.).
Cap Rate
CAP rate is short for Capitalization Rate. Net operating income as a percentage of property value.
Operating Yield
NOI as a percentage of purchase price.
Unlevered Yield
NOI as a percentage of current property value (same as cap rate).
Operating Expense Ratio
Operating expenses as a percentage of effective gross income.
Per Unit Operating Cost
Annual operating expenses divided by number of units.
Operating Cost Per Square Foot
Annual operating expenses divided by total square footage.
Insurance Cost Per Unit
Annual insurance cost divided by number of units.
Tax Cost Per Unit
Annual property taxes divided by number of units.
Vacancy Loss
Income lost to vacancy, shown annually and monthly.
Effective Vacancy Rate
Actual vacancy loss as a percentage of gross potential rent.
Other Monthly Expenses
Combined additional monthly expenses not covered by standard categories.
Debt Service
Total annual mortgage payments.
Debt Service Coverage Ratio
Net Operating Income divided by annual debt service — measures ability to cover mortgage.
Debt Yield
NOI as a percentage of total loan amount.
Total Interest Over Life of Loan
Total interest paid if the loan is held to maturity.
Front End Ratio
Monthly mortgage payment as a percentage of monthly rent.
Loan Amount
The total amount borrowed to finance the property purchase.
Monthly PMI
Monthly Private Mortgage Insurance payment required when down payment is below 20%.
Total Monthly Payment
Combined monthly mortgage principal, interest, and PMI payment.
Price Per Unit
Purchase price divided by number of units.
Price Per Square Foot
Purchase price divided by total square footage.
Equity Position Current
Current property value minus outstanding loan balance.
Equity as Percent of Value
Current equity as a percentage of property value.
Market Value to Rent Ratio
Property value divided by annual rent — inverse of rent to value ratio.
Organic Appreciation
The market-driven increase in property value due to natural appreciation — independent of any owner-initiated improvements.
Depreciation as Percent of Income
Annual depreciation as a percentage of effective gross income.
Tax Savings From Depreciation
Dollar amount saved in taxes due to depreciation deduction.
Cash Flow from Depreciation™
Additional effective cash flow generated by depreciation tax savings.
Annual Capital Gain
Dollar amount of property appreciation for the current year.
Cash-Out Refi Equity
Maximum cash you can pull out through a cash-out refinance.
Cost to Cash-Out Refi ($)
Estimated dollar cost to execute a cash-out refinance.
Cost to Access Equity
Total estimated cost to convert paper equity into usable cash.
Total Equity Current
Current equity position (property value minus loan balance).
Leverage Ratio
Property value divided by equity — measures leverage amplification.
Rehab Cost Per Square Foot
Rent-ready/renovation costs divided by square footage.
One Percent Rule
Does monthly rent equal or exceed 1% of property value?
Two Percent Rule
Does monthly rent equal or exceed 2% of property value?
Rent Ready Costs
Initial repairs and improvements needed before renting the property.
Single Input
Metrics derived from a single property input. Quick reference values that require minimal data.
+R6 Months of Reserves
Number of months in the conservative reserve scenario (6 months).
+R6 Rate of Return
Expected annual return on a 6-month reserve fund (1% — savings account).
+R12 Months of Reserves
Number of months in the aggressive reserve scenario (12 months).
+R12 Rate of Return
Expected annual return on a 12-month reserve fund (8% — invested).
Monthly Rent
The gross monthly rental income collected from tenants.
Property Management
Annual property management cost.
Maintenance
Annual maintenance and repair reserve.
CapEx Reserve Annual
Annual capital expenditure reserve for major replacements.
Property Taxes
Total annual property tax cost based on assessed value and tax rate.
Insurance
Total annual property insurance premium based on property value and insurance rate.
HOA Fees
Annual Homeowners Association fees for the property.
Monthly Utilities
Monthly utility costs paid by the landlord (water, sewer, trash, gas, electric).
Vacancy Rate
The estimated percentage of time the property will be vacant each year.
Property Tax Rate
The annual property tax rate as a percentage of property value.
Property Insurance Rate
The annual property insurance cost as a percentage of property value.
Property Management Rate
The property management fee as a percentage of gross rent.
Maintenance Rate
The annual maintenance budget as a percentage of gross rent.
Monthly Interest Payment
Interest portion of the first month's mortgage payment.
Mortgage Interest Rate
The annual interest rate on the mortgage loan.
Loan Term
The total length of the mortgage loan in months.
Down Payment Percent
The down payment as a percentage of the purchase price.
Closing Costs Percent
Purchase closing costs as a percentage of the purchase price.
PMI Rate
Annual Private Mortgage Insurance rate as a percentage of the loan amount.
Replacement Cost Estimate
Estimated cost to rebuild the structure at current construction costs.
Other Income Appreciation Rate
Annual growth rate for other income sources like parking, laundry, or storage.
HOA Appreciation Rate
Annual growth rate for HOA dues.
Utilities Appreciation Rate
Annual growth rate for utility costs.
CapEx Appreciation Rate
Annual growth rate for capital expenditure reserves.
Other Expense 1 Appreciation Rate
Annual growth rate for the first custom expense category.
Other Expense 2 Appreciation Rate
Annual growth rate for the second custom expense category.
Property Value
The current estimated market value of the property.
Square Footage
The total livable square footage of the property.
Number of Units
The number of rentable units in the property.
After-Repair Value (ARV)
The estimated property value after all planned renovations are completed.
Appreciation Rate
The expected annual property value appreciation rate.
Rent Appreciation Rate
The expected annual rent growth rate.
Depreciation
Annual straight-line depreciation deduction for the building.
Depreciation Remaining
Years of depreciation benefit remaining.
Max LTV for Cash-Out Refi
Maximum loan-to-value ratio allowed for a cash-out refinance (industry standard 75%).
Cost to Cash-Out Refi (%)
Estimated percentage cost to execute a cash-out refinance (industry standard 8%).
Income Tax Rate
Your marginal income tax rate applied to rental income.
Capital Gains Tax Rate
The tax rate applied to long-term capital gains when selling the property.
Depreciation Recapture Tax Rate
The tax rate on accumulated depreciation when the property is sold.
Land Value Percent
The percentage of property value attributed to the land (non-depreciable).
Land Value Dollar
The estimated dollar value of the land portion of a property, calculated from the land value percent and current property value.
Property Type (Depreciation)
Residential or commercial classification that determines the IRS depreciation schedule applied to the property.
Purchase Price
The agreed-upon price to acquire the property.
Down Payment
The cash portion you pay upfront toward the purchase price.
Closing Costs
Fees and expenses paid at the time of purchase beyond the down payment.
Seller Concessions
Credits from the seller that reduce your out-of-pocket closing costs.
Real Estate Commission
The agent commission rate paid when selling the property.
Closing Costs at Sale
Transaction costs when selling the property as a percentage of sale price.
Monthly Management Hours
The estimated hours per month spent managing the property.
Intermediate
Intermediate calculations that combine multiple metrics. Deeper analysis requiring more context.
Cash Flow Before Tax
Cash remaining after operating expenses and debt service.
Monthly Cash Flow Per Unit
Monthly pre-tax cash flow divided by number of units.
Breakeven Ratio
Percentage of gross rent needed to cover all expenses and debt service.
Back End Ratio
Monthly mortgage plus operating expenses as a percentage of rent.
Appreciation to Double Equity
Appreciation rate needed to double your current equity.
Cash Flow Growth Rate
Percentage change in cash flow from Year 1 to Year 2.
Break-Even Occupancy Rate
Minimum occupancy rate needed to cover all expenses and debt service.
Projected Appreciation (5-Year)
Cumulative equity gained from property value appreciation over 5 years.
Projected Loan Paydown (5-Year)
Cumulative equity built from mortgage principal payments over 5 years.
Equity Growth Rate
Year-over-year percentage growth in equity position.
Profit If Sold Today
Net profit if the property were sold at current market value.
Advanced
Advanced calculations involving tax, depreciation, or multi-variable analysis.
Cash Flow After Tax
Cash remaining after all expenses, debt service, and estimated taxes.
True Cash Flow™
Cash flow before tax plus the cash benefit of depreciation tax savings.
Total ROI
Combined return from cash flow, appreciation, loan paydown, and Cash Flow from Depreciation™.
True Cash on Cash ROI
True Cash Flow™ as a percentage of total cash invested.
Net Income Return
After-tax cash flow as a percentage of total cash invested.
Cost Approach Value
Estimated value based on land value plus depreciated replacement cost.
Months Until Cash Flow Positive
Number of months before the property generates positive monthly cash flow.
Effective Tax Rate
Estimated income tax as a percentage of NOI.
Annual Wealth Building
Combined cash flow, appreciation, and principal paydown for the current year.
Annual Net Worth Impact
Total impact on your net worth from this property for the current year.
Equivalent Stock Return
Total Year 1 ROI comparable to stock market annual returns.
Return vs S&P 500
Your total ROI minus the historical 10% S&P 500 average.
Multi-Year
Multi-year projections and compound calculations spanning 5+ year time horizons.
Annualized Return
Compound annual growth rate over a 5-year hold period.
Return Per Dollar (5-Year)
Total distributions over 5 years divided by initial cash invested.
Equity Multiple (5-Year)
Total distributions over 5 years as a multiple of equity invested.
Projected Cash Flow (5-Year)
Year-by-year cash flow projection for 5 years with growth assumptions.
Projected NOI (5-Year)
Year-by-year NOI projection for 5 years.
Complex
Complex calculations like IRR that use iterative methods and sophisticated financial models.
Unknown
Cash Flow Resiliency (Dollar)
Monthly cash flow buffer before going negative
Cash Flow Resiliency (Percent)
Cash flow buffer as percentage of gross operating income
Rent Resiliency (Dollar)
How much rent can drop before cash flow hits zero
Rent Resiliency (Percent)
Rent drop buffer as percentage of current rent
Vacancy Resiliency (Dollar)
Monthly cash flow buffer against vacancy increases
Vacancy Resiliency (Pct Points)
How many percentage points vacancy can rise before breakeven
Property Tax Resiliency (Dollar)
Monthly cash flow buffer against property tax increases
Property Tax Resiliency (Percent)
Cash flow buffer as percentage of monthly property taxes
Insurance Resiliency (Dollar)
Monthly cash flow buffer against insurance increases
Insurance Resiliency (Percent)
Cash flow buffer as percentage of monthly insurance
HOA Resiliency (Dollar)
Monthly cash flow buffer against HOA fee increases
HOA Resiliency (Percent)
Cash flow buffer as percentage of monthly HOA fees
Utilities Resiliency (Dollar)
Monthly cash flow buffer against utility cost increases
Utilities Resiliency (Percent)
Cash flow buffer as percentage of monthly utilities
Maintenance Resiliency (Dollar)
Monthly cash flow buffer against maintenance cost increases
Maintenance Resiliency (Percent)
Cash flow buffer as percentage of monthly maintenance
Management Resiliency (Dollar)
Monthly cash flow buffer against management fee increases
Management Resiliency (Percent)
Cash flow buffer as percentage of monthly management fees
CapEx Resiliency (Dollar)
Monthly cash flow buffer against CapEx increases
CapEx Resiliency (Percent)
Cash flow buffer as percentage of monthly CapEx reserves
Price Resiliency (Dollar)
How much property value can drop before equity goes negative
Price Resiliency (Percent)
Simple equity as percentage of property value
Equity Resiliency (Dollar)
How much value can drop before True Net Equity goes negative
Equity Resiliency (Percent)
True Net Equity as percentage of property value
Overall Resiliency Score
Weighted composite resiliency score from 0 to 100