Rental Property Profit Calculator

This calculator outputs:

The Capitalization Rate (i.e. Cap Rate) for the first year, and
The Return on Investment (e.g. ROI/IRR) over the loan term of an investment property.

The following definitions apply:

Cap Rate: [(Rent Received) MINUS (Property Taxes + Insurance + HOA Dues + Repairs) ] / (Purchase Price)
Return on Investment: The yield rate on the property such that the present value of cash flows is zero over the loan term selected.

Property Purchase Price ($):

Down Payment (%):

Down Payment Amount: $100,000

Mortgage Rate (%):

Mortgage Length (Years):

Closing Costs (% of Home Value):

Monthly Rent ($):

Annual Rent Increase (%):

Annual Home Appreciation (%):

Property Tax Rate (%):

Annual Homeowner's Insurance Cost ($):

Monthly HOA Dues ($):

Monthly Repair Cost ($):

Annual Expense Inflation (%):

Applies to Insurance, HOA Dues, and Repairs

Assumptions and Definitions:

The calculator assumes the net investment in the project is equal to down payment plus closing costs.
The monthly profit is inclusive of the implied appreciation of the house.
Monthly Property Tax ($): Property Tax Rate multiplied by Property Value at the start of each year
Home Appreciation: Assumed to grow uniformly throughout the year.
Annual Expense Inflation: This is the annual inflation on homeowner’s insurance, HOA dues, and repair costs.

Disclaimers:

These calculations are educational in nature and for estimation purposes only. Payments and assumptions are based on user inputs. Calculations do not include mortgage insurance (if applicable). This does not constitute an offer or approval of credit. Contact a Park 65 Lending loan officer to learn more.