Fill in your property details on the left and click Calculate to see your rental income breakdown — or try an Example Scenario below.
Rental income is the money you collect from tenants who rent your property. It's one of the most common ways people build long-term wealth through real estate. But your actual profit — called net cash flow — depends on how much you spend to own and operate the property.
Gross rental income is the full amount your tenants pay each month. Net operating income (NOI) is what's left after all operating expenses except the mortgage. Cash flow is what's left after you also pay the mortgage — your real pocket money each month.
Two properties with the same rent can have very different returns depending on purchase price, local taxes, and management costs. That's why investors use metrics like cap rate and cash-on-cash return to compare deals fairly.
These are the core calculations this tool uses:
Example: $1,800/mo rent, $220,000 purchase. NOI = $900/mo. Cap Rate = ($10,800 ÷ $220,000) × 100 = 4.9%.
| Market Type | Typical Cap Rate | Typical Gross Yield | Risk Level |
|---|---|---|---|
| Prime Urban (NYC, SF) | 2–4% | 3–5% | Low |
| Major Metro Suburbs | 4–6% | 6–8% | Low–Medium |
| Mid-Size Cities | 5–8% | 7–10% | Medium |
| Secondary Markets | 7–10% | 9–13% | Medium–High |
| Rural / Small Town | 8–14% | 10–16% | High |
| Buy-to-Let (UK) | 3–6% | 5–8% | Medium |
Use these benchmarks if you don't have exact numbers yet. All figures are rough averages and vary by location and property type.
| Expense Type | Typical Range |
|---|---|
| Property Tax | 0.5–2% of value per year |
| Landlord Insurance | 0.5–1.5% of value per year |
| Maintenance & Repairs | 1% of value per year |
| Property Management | 8–12% of monthly rent |
| Vacancy Allowance | 5–10% of gross rent |
| HOA Fees (if any) | $100–$500/month (varies) |
Annual NOI assumed to be 60% of gross rent (40% expense ratio). Cap Rate = Annual NOI ÷ Purchase Price.
| Monthly Rent | $100K | $150K | $200K | $300K | $400K | $500K |
|---|
Cap rates above 6% are generally considered good for residential properties. Highlighted cells show cap rates ≥ 6%.
Annual Cash Flow ÷ Cash Invested (down payment + closing costs). Shows your actual return on money you put in.
| Annual Cash Flow | $20K Down | $40K Down | $50K Down | $75K Down | $100K Down | $150K Down |
|---|
Most investors target a cash-on-cash return of at least 6–10%. Highlighted cells show returns ≥ 8%.
Estimated gross annual rental income with 3% annual rent increase starting from different monthly rent levels.
| Starting Rent/Mo | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | 5-Yr Total |
|---|
Assumes 3% annual rent growth and 5% vacancy. Actual growth depends on local rental market conditions.
How different expense ratios affect monthly cash flow for a property with a fixed mortgage payment at various rent levels.
| Monthly Rent | 30% Expenses | 40% Expenses | 50% Expenses | 60% Expenses | 70% Expenses | Mortgage Est. |
|---|
Expense ratio = Total operating expenses ÷ Gross rent. Typical range is 35–55% for residential rentals. Mortgage estimate uses 30yr at ~7%.
A reference guide to typical gross rental yields and investment conditions in major markets worldwide.
| Country | Avg Gross Yield | Major Cities Yield | Vacancy Rate | Foreign Buyer? | Market Trend |
|---|---|---|---|---|---|
| 🇺🇸 USA | 5–8% | 3–5% (NY, SF) | 5–7% | Yes | Strong demand |
| 🇬🇧 UK | 4–7% | 3–5% (London) | 3–5% | Yes | Growing |
| 🇦🇺 Australia | 3–6% | 2–4% (Sydney) | 2–4% | Restricted | Rising prices |
| 🇨🇦 Canada | 4–7% | 3–5% (Toronto) | 2–4% | Restricted | High demand |
| 🇩🇪 Germany | 3–5% | 2–4% (Berlin) | 2–3% | Yes | Stable |
| 🇯🇵 Japan | 5–8% | 4–6% (Tokyo) | 10–18% | Yes | Stable/flat |
| 🇺🇦 UAE (Dubai) | 6–10% | 6–9% | 8–12% | Yes | Rapidly growing |
| 🇲🇾 Malaysia | 4–7% | 3–5% (KL) | 15–25% | Yes | Oversupply risk |
| 🇵🇹 Portugal | 4–7% | 4–6% (Lisbon) | 4–8% | Yes | Tourism demand |
| 🇿🇦 South Africa | 7–11% | 6–9% (Cape Town) | 8–15% | Yes | High yields, risk |
| 🇮🇳 India | 2–4% | 1.5–3% (Mumbai) | 10–20% | Restricted | Appreciation driven |
Data is approximate and for reference only. Yields vary widely by city, neighborhood, and property type. Always research local conditions before investing.
Monthly net cash flow after estimated tax at common brackets. Assumes cash flow is fully taxable as ordinary income (no deductions modeled).
| Monthly Cash Flow | After 15% Tax | After 22% Tax | After 25% Tax | After 28% Tax | After 32% Tax | After 37% Tax |
|---|
Actual tax depends on deductions like depreciation, mortgage interest, and local taxes. Consult a tax professional for accurate rental income tax planning.