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Rental Property ROI Calculator

Calculate cash flow, cap rate, and returns in real-time

Property Details

Purchase Information

$300,000
20% ($60,000)
6.5%
30 yrs

Monthly Expenses

$250
$100
$0
$150

Rental Income

$2,500
5%
Monthly Cash Flow
$358
$4,296/yr

Key Metrics

Cash-on-Cash Return
7.16%
Cap Rate
7.50%
Net Operating Income
$22,500
Down Payment
$60,000

Cash-on-cash return uses your down payment as cash invested. Add closing costs and upfront repairs to the down payment for a more conservative figure.

Monthly Breakdown

Mortgage (P&I)
$1,517
Property Tax
$250
Insurance
$100
Maintenance
$150
Total Expenses
$2,017
Effective Rent(5% vacancy)
$2,375
Protect Your Investment

Screen your next tenant with VeriRent's document fraud detection before signing a lease.

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Frequently Asked Questions

What is a good ROI for rental property?

Most investors target 8–12% cash-on-cash return. Anything above 10% is considered strong. Below 6% may not justify the risk versus passive investments. VeriRent's ROI calculator factors in all expenses including vacancy, maintenance, and management fees. Use our fraud cost calculator to see how tenant fraud can erode those returns.

How do you calculate rental property ROI?

Cash-on-cash return = annual net income / total cash invested. Include all expenses: mortgage, taxes, insurance, maintenance (budget 1–2% of property value annually), vacancy (5–10%), and management fees (8–10% of rent). VeriRent's calculator handles all variables. Learn about how fake pay stubs inflate income verification and protect your investment from the start.

What expenses should I include in rental ROI calculations?

Mortgage/financing costs, property taxes, insurance, maintenance reserves (1–2% of value), vacancy allowance (typically 5–10%), property management fees (8–10%), and capital expenditure reserves. Missing any of these inflates your projected returns. Check your state's security deposit limits to factor in upfront costs correctly.

How does tenant fraud affect rental ROI?

A single fraudulent tenant can cost $15,000–$30,000 in lost rent, legal fees, and property damage — wiping out years of positive ROI. VeriRent's fraud detection catches fake paystubs, forged identities, and manipulated references before lease signing. Read about identity fraud in rental applications or see VeriRent pricing.