Rental Property Calculator
Enter a property's price, rent and costs to see its yield, cap rate and monthly cash flow, with or without a loan. Nothing is uploaded.
Work out gross rental yield, net yield, cap rate, monthly cash flow and cash-on-cash return in any currency (₹ INR by default), from the purchase price, buying costs, rent, vacancy and running costs, with an optional home loan EMI.
Every formula is shown beside its result. The cap rate ignores the loan, and nothing here includes income tax on rent or growth in the price. No tax rules for any country are applied.
Use a dot for decimals (120000.50); commas and spaces are read as thousands separators. Percentages are typed as percentages: 8 means 8%.
Notes: the cap rate ignores the loan. Nothing here includes income tax on rent or price growth.
How to use the Rental Property Calculator
- Enter the purchase price, one-off buying costs, monthly rent and yearly running costs. Pick your currency.
- Check the assumptions: vacancy and any property management fee.
- If you are taking a loan, tick the box and enter the down payment, as an amount or a percentage of the price, with the interest rate and the term.
- Read the yields, cap rate, cash flow and cash-on-cash return. Each one has its formula underneath.
Frequently asked questions
How are the yields worked out?
Gross yield = yearly rent ÷ price. Net operating income = yearly rent × (1 − vacancy), less management and running costs. Net yield = net operating income ÷ (price + buying costs). Cap rate = net operating income ÷ price.
What is the difference between net yield and cap rate?
Both start from net operating income. Net yield divides it by the price plus your one-off buying costs, so it shows the return on everything the property cost you. The cap rate divides it by the price alone, which makes it easier to compare properties. Neither one depends on the loan.
How is the cash flow worked out?
Without a loan, monthly cash flow is net operating income ÷ 12. With a loan, it is (net operating income − EMI × 12) ÷ 12. A negative figure means the rent does not cover the costs, and the loan if you have one, and you pay the difference yourself.
What is cash-on-cash return?
Yearly cash flow ÷ the cash you put in. With a loan, the cash put in is the down payment plus buying costs. Without a loan, it is the price plus buying costs. If the down payment and buying costs are both 0, there is no cash put in, so the page says so instead of showing a figure.
How is the EMI worked out?
With the standard formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the price less the down payment, r is the monthly interest rate and n is the number of months. It is the same formula as the Loan and EMI Calculator.
Why is vacancy 8% by default?
One empty month a year is about 8% of the year. Change it to match the area and the property. Management, if you pay for it, is a percentage of the rent you collect after vacancy.
Does this include income tax or a rise in the price?
No. None of these figures include income tax on rent or growth in the property's price, and no tax rules for any country are applied. Property tax is counted only if you include it in your running costs.
How do I type amounts like 1,20,000 or 120,000.50?
Both work. Use a dot for decimals (120000.50); commas and spaces are read as thousands separators. That means 1.234,56 written the European way is not read correctly, so type 1234.56 instead.
Is anything I type sent anywhere?
No. Everything is calculated in your browser. Only your currency, vacancy and management percentages are remembered, in this browser; Clear removes them. The price, rent, costs and loan details are not stored.
Fun facts about rental yields
- A rent of 25,000 a month on a price of 50,00,000 is a gross yield of 6%.
- One empty month a year is a vacancy of about 8.3%.
- Buying costs of 7% of the price turn a 5% cap rate into a net yield of about 4.67%.
- A 20-year loan at 8.5% has an EMI of about 868 for every 1,00,000 borrowed, so you pay back about 2.08 times what you borrowed.