Beginners

Rental Property Calculator for Beginners

If you're analyzing your first rental, the jargon can be overwhelming. It really comes down to five numbers. Master these and you can judge almost any deal.

1. Cash flow

What's left each month after rent pays the mortgage and all expenses. Positive cash flow means the property pays you; negative means you feed it.

2. Cap rate

Net operating income ÷ price. A quick way to compare properties regardless of how they're financed.

3. Cash-on-cash return

Annual cash flow ÷ the cash you actually invested. This is your real return on the money you put down.

4. DSCR

Net operating income ÷ loan payments. Lenders want 1.20x+; it tells you how much cushion the deal has.

5. The 1% rule

A fast screen: monthly rent should be near 1% of price. Use it to filter, then run the full numbers.

Put it together

You don't need to compute these by hand. Start with the free Quick Calculator, and when you're comparing real deals, the full analyzer does all five (plus a 10-year projection) automatically.

Run the numbers automatically

Rental Property Investment Analyzer

Stop computing this by hand. The Rental Property Investment Analyzer does it for you — instantly, with a clear verdict at the end. One-time $29, works in Excel & Google Sheets.

View the Rental Property Investment Analyzer

FAQ

What's the most important number for a beginner?

Monthly cash flow — it tells you immediately whether the property pays you or costs you. Then layer in cash-on-cash return.

Do I need expensive software?

No. A well-built spreadsheet handles everything most investors need, with no subscription. Start free, then upgrade when you're comparing real deals.

← Or start with the free Quick Calculator