Rental property calculator
See how a rental property portfolio compounds over time. Adjust the assumptions and watch cash flow, appreciation, tax savings, and equity grow.
Results update as you type.
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. 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. This is an investment property calculator for the whole portfolio, not a single deal. For one property’s numbers, use the DSCR loan calculator. Each property’s down payment and closing costs are funded first by what the portfolio already throws off (reinvested net cash flow, then recycled equity), and only then by your cash. A whole property is bought whenever those funds cover it.
There are two ways to recycle equity, and the toggle above switches between them. With a cash-out refinance, you keep each property and pull its equity back out up to 75% LTV once it has seasoned three years, net of 2% closing costs. The bigger loan raises the payment, so that property’s cash flow drops. With a 1031 exchange, you sell a seasoned property instead and roll the proceeds into the next purchases. A property is sold once its cumulative total return (cash flow, appreciation, principal paydown, and tax savings, net of a 6% cost of sale) reaches 100% of the cash you invested in it, and the net proceeds fund the next down payments.
As the portfolio grows, cash flow and recycled 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). Either way the calculator assumes a 20% down payment plus closing costs per purchase and depreciation on an 80% building basis over 27.5 years at your marginal tax rate.
The strategy behind the math: how to reinvest rental cash flow into a portfolio →
How many rental properties it takes to retire →
How the cash flow calculator works
The monthly cash flow figure is rent minus the full cost of ownership per door: mortgage payment, taxes, insurance, property management, and the vacancy and maintenance reserves. It grows 3% a year with rent growth. In cash-out refinance mode it drops on any property you refinance, because the bigger loan means a bigger payment. If you want the deeper walkthrough of what counts as cash flow and what doesn’t, we wrote it up: the four returns of rental property.
How the ROI calculation works
Return on equity adds all four returns together: cash flow, appreciation, principal paydown, and the tax savings from depreciation, measured against the equity you have in the portfolio. It’s a wider lens than cash-on-cash return, which only counts the cash the portfolio pays you against the cash you put in. Both show up in the results above, and the FAQ below covers how they differ from cap rate.
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 you recycle from seasoned properties, either through a cash-out refinance or a 1031 exchange, to fund the next down payment. That compounding loop is what this calculator projects. Our guide on reinvesting rental cash flow walks through it.
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 when you choose the cash-out refinance option.
Both recycle a property's equity into the next purchase, and the toggle lets you compare them. A cash-out refinance keeps the property and pulls equity up to 75% loan-to-value, so you hold more doors but each carries more debt. A 1031 exchange sells the property once its total return reaches 100% of the cash invested, net of a 6% cost of sale, and rolls the proceeds forward. That defers the capital gains tax and frees more cash per move, but leaves you with fewer, less-leveraged doors. Neither is universally better. Model your own inputs and compare the trajectories.
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 20% down payment plus closing costs per door, net cash flow per property that grows 3% a year, and straight-line depreciation on an 80% building basis over 27.5 years at your marginal tax rate. Equity is recycled either through cash-out refinances (capped at 75% loan-to-value, after a 3-year seasoning, with the higher loan reducing that property’s cash flow) or through 1031 exchanges (a seasoned property is sold once its total return, net of a 6% cost of sale, reaches 100% of the cash invested). 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.