Investment Property Calculator Analyze rental property investments with full BRRRR analysis, 20-year projections, IRR, ...

Investment Property Calculator

Analyze rental property investments with full BRRRR analysis, 20-year projections, IRR, and cash flow.

Property Purchase

Property Price ($)

Down Payment (%)

Interest Rate (%)

Loan Term (Years) 30 Years 15 Years

Annual Expenses

Property Tax ($)

Insurance ($)

Maintenance ($)

Other Costs ($)

Property Management (%)

Vacancy Rate (%)

Rental Income

Monthly Rent ($)

Other Income ($/mo)

Holding Period

Holding Period (Years)

Appreciation (%/yr)

Selling Costs (%)

Results

18.42%

Return (IRR)

$402,304

Total Profit

874.57%

Cash on Cash

8.05%

Cap Rate

First Year Income and Expense

Item	Monthly	Annual

First Year Expense Breakdown

Breakdown Over 20 Years

Year	Income	Mortgage	Expenses	Cash Flow	CoC Return	Equity	Net if Sold

Professional Guide to Investment Property Analysis

In today's high-rate environment (6.45% average mortgage rates), superficial analysis leads to catastrophic losses. This calculator implements the exact methodology used by institutional investors like Blackstone — accounting for true operating expenses, vacancy stress, and leverage impact that 95% of retail investors ignore.

Core Metrics Decoded

Cap Rate (Capitalization Rate)

Formula: NOI ÷ Property Price
2025 Benchmark: 7%+ (Strong markets like Cleveland)
Professional Insight: Measures property-level yield independent of financing.

Cash-on-Cash Return

Formula: Annual Cash Flow ÷ Total Cash Invested
2025 Benchmark: ≥10% (Strong)
Professional Insight: Your actual cash return — the metric that determines if you can sleep at night.

How to Use This Calculator Like a Pro

1. Start with Realistic Numbers — Research local rental comps for accurate income estimates
2. Stress Test Aggressively — What if vacancy = 10%, maintenance = 15%?
3. Validate with the 1% Rule — Monthly rent ≥ 1% of purchase price
4. Compare Scenarios — All-cash vs. 25% down: Which gives better 10-year IRR?

What is Cap Rate and why does it matter?

Cap Rate (Capitalization Rate) = Net Operating Income (NOI) ÷ Property Price.

It measures the property’s unleveraged return — independent of financing. A 5% cap rate means you earn 5% annually on the purchase price before debt.

2025 Benchmark: 7%+ in strong markets (Cleveland, Indianapolis), 4–5% in premium markets (SF, NYC).

How is Cash-on-Cash ROI different?

Cash-on-Cash ROI = Annual Cash Flow ÷ Total Cash Invested (down payment + closing costs).

Unlike cap rate, this reflects your actual cash return after financing. A 5% cap property with 25% down at 6.45% can yield 6.8% CoC ROI — leverage amplifies returns when cap > loan rate.

How do I account for capital expenditures (CapEx) in my analysis?

CapEx (Capital Expenditures) are large, predictable costs: roof replacements ($10K), HVAC ($5K), plumbing ($3K), etc. They're not "optional" — they're as certain as property taxes.

Professional investors allocate 5–10% of gross rent monthly to a CapEx reserve fund. Our calculator includes this in "Other Costs" ($500/yr = ~2% of $24K rent).

Red Flag: If a deal only works when you ignore CapEx, it's a money pit.

What is the difference between IRR and Cash-on-Cash ROI?

Cash-on-Cash ROI is a single-year snapshot: Annual Cash Flow ÷ Cash Invested.

IRR (Internal Rate of Return) is a time-weighted return that accounts for:

• All cash flows (initial investment, annual cash flow, sale proceeds)
• The time value of money
• Compounding over the holding period

Professional Insight: A property with 8% CoC ROI but 18% IRR is superior — it compounds wealth faster through appreciation and principal paydown.

How do interest rate changes impact my investment returns?

Interest rates are the #1 lever in real estate returns. A 1% rate increase reduces cash flow by ~15% and IRR by 3–5 points.

Example: $200K property, $2K/mo rent, 20% down:

Interest Rate	Monthly Cash Flow	IRR
5.0%	$512	20.1%
6.0%	$452	18.4%
7.0%	$398	16.9%

Mitigation: Lock 30-year fixed rates, target properties with >7% cap rates, maintain 6-month cash reserves.

What are the biggest risks in rental property investing — and how do I mitigate them?

Top 4 Risks & Mitigation Strategies:

1. Bad Tenants → Screen rigorously (credit, income, eviction history), use leases with late fees, hire professional PM.
2. Vacancy Loss → Price competitively, maintain property, build tenant relationships, keep 3 months' rent in reserves.
3. Interest Rate Risk → Lock 30-year fixed, avoid ARMs, target high-cap properties (≥7%).
4. Liquidity Risk → Keep 6 months' reserves, avoid over-leveraging, maintain emergency fund.

Pro Tip: Run a "stress test" — what if rent drops 20% + vacancy hits 12% + maintenance doubles? If still cash-flow positive, you're safe.