Buy & Hold Rental Calculator

The rent is not the return. See what a long-term rental actually leaves you once vacancy, repairs, and the mortgage are counted, and which number is most likely to sink it.

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This deal works

Strong cash flow, and the rent covers the mortgage with room to spare.

$420

per month, after the mortgage, running costs, and money set aside for repairs

What breaks it

This works if the interest rate stays at 9.97% or less. You have entered 7%, so you have 2.97 points of room.

The numbers behind it

Cap rate8.4%

The return if you paid cash, ignoring the loan. It lets you compare properties at different prices. Above about 6% is healthy, under 4% means the price is outrunning the income. The CapEx reserve and management come out first, so this reads lower than a cap rate quoted on a listing, which usually leaves both in.

Cash-on-cash return8.8%

Your yearly profit measured against the cash you actually put in. 8% or better is the usual bar for a rental worth owning.

Debt coverage (DSCR)1.32

Whether the rent covers the mortgage, and by how much. 1.20 means 20% more income than the loan payment needs, and most lenders want at least that.

Example: a $250,000 house let at $2,750 a month, 20% down at 7% over 30 years.