Screen deals in 60 seconds
Enter a purchase price, rent, and expenses to instantly see cap rate, cash-on-cash return, DSCR, and monthly cash flow. Know whether a deal is worth pursuing before you visit the property.
Enter your deal numbers below to see key metrics instantly.
Cap Rate
6.24%
Monthly Cash Flow
$53
Cash-on-Cash Return
1.01%
DSCR
1.04x
Use this framework to quickly qualify or discard properties before spending time on full due diligence.
Divide monthly rent by purchase price. If the result is below 0.8%, the deal almost certainly won't cash flow with conventional financing. Above 1% is worth a closer look.
For a quick estimate, budget 40–50% of gross rent for expenses (taxes, insurance, maintenance, vacancy, CapEx reserves, and property management). Refine later with actuals.
NOI ÷ Price gives you cap rate (the unlevered yield). After subtracting debt service, Annual Cash Flow ÷ Cash Invested gives cash-on-cash return — the metric that matters most when you're using a loan.
Lenders want NOI to cover at least 1.20–1.25× the annual debt service. If your DSCR is below 1.0, the property doesn't generate enough income to cover the loan and you'll be feeding it cash each month.
Rental property calculators estimate the financial performance of an investment property using a handful of core formulas. Here are the key metrics every investor should know:
NOI ÷ Property Price
Measures how much income a property generates relative to its price, before financing.
Annual Cash Flow ÷ Total Cash Invested
The return on the actual dollars you put into the deal, after debt service.
NOI ÷ Debt Service
Banks use this to determine if the property generates enough income to cover the loan.
| Metric | Target Range | What It Tells You |
|---|---|---|
| Cap Rate | 5.0–8.0% | Unlevered income yield — higher means more income per dollar of price |
| Cash-on-Cash Return | 8–12% | Return on your actual cash invested, after financing |
| DSCR | 1.20–1.50 | Loan safety margin — above 1.25 is comfortable for most lenders |
| Monthly Cash Flow / Unit | $100–$300 | Net dollars in your pocket per unit after all expenses and debt |
| Rent-to-Price Ratio | 0.8–1.2% | Quick filter — monthly rent as % of purchase price (1% rule) |
These metrics are a starting point. A full analysis also considers vacancy risk, expense growth, rent appreciation, and refinancing scenarios — all of which DealForge handles automatically.
Start with the purchase price, expected rent, and operating expenses. Calculate Net Operating Income (NOI), then derive cap rate, cash-on-cash return, and DSCR. A full analysis also factors in vacancy, maintenance reserves, property management, and financing terms. DealForge automates all of this in one tool.
Most investors target at least $100–$200 per unit per month in net cash flow after all expenses and debt service. However, the “right” number depends on the market, property class, and your investment goals. Higher cash flow usually comes with higher risk or more management-intensive properties.
At minimum: cap rate (unlevered yield), cash-on-cash return (return on your cash invested), DSCR (whether the property covers the loan), and net cash flow. Advanced analysis includes break-even occupancy, rent-to-value ratio, and sensitivity to vacancy or rate changes.
The 1% rule is a quick screening filter: monthly rent should be at least 1% of the purchase price. A $200,000 property should rent for $2,000/month or more. It’s a rough starting point — not a substitute for full analysis — but it helps quickly filter out deals that won’t cash flow.
A calculator is only as accurate as the inputs you provide. The formulas are standard (cap rate, CoC, DSCR), but real-world results depend on actual vacancy, maintenance costs, and rent collection. DealForge lets you model different scenarios so you can stress-test assumptions before committing.
Dive deeper into specific metrics with these focused tools.
Move beyond spreadsheets. DealForge gives you institutional-grade underwriting, scenario modeling, and lender-ready reports — all in one place.
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