Run the numbers on a rental property: monthly mortgage payment, net operating income, cap rate, cash flow, cash-on-cash return, DSCR, a year-by-year projection over your hold period, and the IRR on the whole deal. Every formula is shown next to its result. This does not look up market rents, taxes or comps — you enter every number yourself.
down payment + closing costs + rehab, where down payment = purchase price × down payment %standard amortisation: loan amount × r × (1+r)^n ÷ ((1+r)^n − 1), where loan amount = purchase price × (1 − down payment %), r = annual rate ÷ 12 ÷ 100, n = term years × 12. If the rate is 0%, payment = loan amount ÷ n.effective gross income − operating expenses. Effective gross income = (monthly rent × 12 × (1 − vacancy %)) + (other income × 12). Operating expenses = property tax + insurance + HOA×12 + utilities×12 + maintenance% × effective rental income + capex% × effective rental income + management% × effective rental income. NOI excludes the mortgage payment.NOI ÷ purchase price × 100(NOI − annual debt service) ÷ 12, where annual debt service = monthly P&I × 12NOI − annual debt serviceannual cash flow ÷ total cash invested × 100NOI ÷ annual debt service. Below 1.00 means the property's income does not cover the mortgage payment.purchase price ÷ gross annual rent (before vacancy)monthly rent ÷ purchase price × 100. A common rule of thumb: 1.00% or higher is considered a "pass". It is a rough screen, not a verdict on the deal.(operating expenses at full occupancy + annual debt service) ÷ gross potential income × 100, where gross potential income = gross annual rent + annual other income, both before any vacancy loss. This is the occupancy rate at which cash flow reaches zero, treating fixed costs as unaffected by occupancy.Rent and fixed expenses grow each year by your growth rates. The mortgage payment stays fixed (a fixed-rate loan); the loan balance and equity come from a real amortisation schedule.
| Year | Rent | Expenses | NOI | Debt service | Cash flow | Loan balance | Equity | Value |
|---|
sale price (property value at the end of the hold) − selling costs % × sale price − remaining loan balancethe discount rate r that makes NPV = 0 for the cash flow series: −(total cash invested) at year 0, each year's cash flow for years 1..n−1, and the final year's cash flow + net sale proceeds at year n. Solved by bisection (no closed-form solution exists for an arbitrary cash flow series).(sum of every year's cash flow + net sale proceeds) ÷ total cash investedKeeps every other number the same and changes only the down payment %, to show its effect on cash-on-cash return and IRR.
| Down % | Cash invested | Monthly P&I | Cash-on-cash | IRR |
|---|
| Name | Price | Down % | Cash invested | Cap rate | Cash flow/mo | Cash-on-cash | DSCR | IRR | Equity multiple |
|---|
Add a property above to compare deals side by side.