Rental property calculator
See how a rental property portfolio compounds over time. Adjust the assumptions and watch cash flow, appreciation, tax savings, and equity build.
Each purchase is funded by your cash, reinvested net cash flow, and equity pulled via cash-out refinance. A property can be refinanced once, after a 3-year seasoning period, up to 75% LTV, with 2% closing costs — and since that raises its loan, its payment goes up and its net cash flow drops accordingly. Net cash flow per property grows 3% a year (rent growth). Depreciation assumes an 80% building basis over 27.5 years at your marginal tax rate. Estimates only, not financial advice.
Portfolio growth
Monthly income
Estimates only — not tax, legal, or investment advice. Actual results vary with rents, vacancy, maintenance, rates, and market conditions. Depreciation tax benefits depend on your individual situation; consult a tax professional.
How this projection works
You bring the cash — a starting amount plus whatever you add each year — and the calculator shows the portfolio it builds. Each property’s down payment and closing costs are funded first by what the portfolio already throws off (reinvested net cash flow, then equity pulled from seasoned properties via cash-out refinance up to 75% LTV), and only then by your cash. A whole property is bought whenever those funds cover it.
As the portfolio grows, cash flow and recyclable equity climb until a purchase needs none of your money — the point where it self-funds. Net cash flow per property grows 3% a year (rent growth); a property is cash-out refinanced at most once and only after a 3-year seasoning period (up to 75% LTV, net of 2% closing costs), and the higher loan from a refinance reduces that property’s cash flow. It assumes a 25% down payment plus closing costs per purchase and depreciation on an 80% building basis over 27.5 years at your marginal tax rate.
Want the strategy behind the math? Read how to reinvest rental cash flow into a portfolio →
Common questions
Cash-on-cash return is your annual pre-tax cash flow divided by the actual cash you have invested (down payments plus closing costs). For example, $6,000 of annual cash flow on $60,000 invested is a 10% cash-on-cash return. It measures the return on your money specifically, separate from appreciation or loan paydown.
There's no universal number. It depends on the market, the property, and what you're solving for. Some investors prioritize cash flow today, while others accept a lower cash-on-cash return for stronger appreciation. Many rental investors look for high single digits to low double digits, but a lower figure in an appreciating market can still be the better deal. Run the math on the specific property rather than chasing a benchmark. Illustrative only. Actual returns vary with rents, vacancy, maintenance, rates, and market conditions.
They answer different questions. Cash-on-cash return measures the cash you earn against the cash you put in. Total ROI adds appreciation and principal paydown on top of cash flow. Cap rate ignores financing entirely. It's net operating income divided by purchase price, used to compare properties before a loan enters the picture. A leveraged rental can show a strong cash-on-cash return and a modest cap rate at the same time. Both are correct.
Rather than spending the monthly surplus, you pool it with equity recycled through cash-out refinances to fund the next down payment. That compounding loop is what this calculator projects. It's the same strategy covered in our guide on reinvesting rental cash flow.
Yes, and it's central to how a portfolio compounds. Once a property has built enough equity, you can refinance and pull cash out (this calculator assumes up to 75% loan-to-value), then put that cash toward the next down payment. The original property keeps cash-flowing while its equity funds the next purchase. That's the recycling loop the projection models.
Depreciation lets you deduct the building's value (not the land) over time, which lowers your taxable income from the property. This calculator assumes an 80% building basis depreciated straight-line over 27.5 years, applied at your marginal tax rate. That's the monthly tax saving figure in the results. Depreciation benefits depend on your individual situation, so consult a tax professional.
It depends on your target monthly income, your net cash flow per door, and how fast you reinvest. If you need $10,000 a month and each property nets $500, that's 20 doors. Reinvested cash flow and appreciation compound the timeline, so you fund later properties faster than the first. Adjust the inputs above to model your own number and pace. Estimates only, not investment advice.
A 25% down payment plus closing costs per door, net cash flow per property that grows 3% a year, cash-out refinances capped at 75% loan-to-value (only after a 3-year seasoning, with the higher loan reducing that property’s cash flow), and straight-line depreciation on an 80% building basis over 27.5 years at your marginal tax rate. Every input is editable.
No. These are estimates only, not tax, legal, or investment advice. Actual results vary with rents, vacancy, maintenance, rates, and market conditions. Consult a professional for your situation.