What is Rental Property ROI Calculator?
A rental property ROI calculator helps investors evaluate potential returns on real estate investments. By analyzing factors like purchase price, rental income, expenses, and financing costs, this tool provides crucial metrics including cash flow, capitalization rate, and annual return percentage. Essential for comparing properties and making data-driven investment decisions in real estate markets.
Investment Calculator
| Metric | Value |
|---|---|
| Annual Rental Income | - |
| Annual Cash Flow | - |
| ROI (%) | - |
| Cap Rate | - |
Frequently Asked Questions
1. How accurate is ROI calculator for rental properties?
The accuracy depends on input quality. While our calculator uses standard real estate formulas, actual returns may vary due to market fluctuations, maintenance costs, and vacancy rates. Use conservative estimates and include all potential expenses for reliable projections.
2. What's the difference between ROI and cap rate?
ROI measures total return on investment including financing, while cap rate calculates property value based on unleveraged returns. Cap rate helps compare properties, ROI shows actual investor returns considering mortgage payments and financing terms.