Financial Calculators

Rental Property vs. Market Investment Calculator

A cleaner grouped-layout version of the rental property calculator.

Winner
Market Investment Result wins
by $3,085,986 more than the rental property.
Rental Property Profit
$2.6M
Market Investment Result
$5.7M

Main Assumptions

Core purchase, financing, rent, timeline, and cash-flow strategy.

$
%

$187,500 cash into property

%

Monthly mortgage = $3,648

yrs
$

Break Even amount: $5,989

Rental property vs. market investment

Market Investment Result is ahead by $3,085,986 after 30 years.

Rental Expenses & Transaction Costs

Operating costs, taxes, closing costs, and sale costs.

%
%

$688 / month

$

$250 / month

%

$625 / month

%

$360 / month

%

$18,750

%

Investment & Growth Assumptions

Market alternative, appreciation, rent growth, and loss coverage.

%
%
%

Custom return

0

Index presets use approximate 30-year annualized historical total-return averages with dividends reinvested. They are planning assumptions, not forecasts.

Ownership cost summary

Today's monthly rent and expense waterfall for the rental property.

Effective monthly rent$4,275
Less monthly mortgage-$3,648
Less property taxes-$688
Less insurance-$250
Less maintenance-$625
Less management-$360
Monthly ownership and operating costs$5,571
Monthly cash flow today-$1,296

This is a current-month view. The full model still applies future rent growth, appreciation, and loan amortization.

Return Metrics

Supporting metrics from the rental property path.

Monthly cash flow
-$1,296
Break-even rent
$5,989
Cash-on-cash
-7.54%
Cap rate
3.76%
Effective monthly rent
$4,275
Net operating income
$28,230
Equity after sale
$2.3M
Ending property value
$2.4M

About this rental property calculator

This rental property calculator compares the estimated profit from owning a rental property against investing the same starting cash in the market. It is designed for testing whether a potential rental purchase looks attractive after financing, expenses, and sale assumptions.

The model includes purchase price, down payment, mortgage rate, monthly rent, vacancy, property tax, insurance, maintenance, management, closing costs, selling costs, appreciation, rent growth, and market return assumptions.

How to interpret the result

The rental property result combines estimated equity after sale, cumulative cash flow, and reinvested positive cash flow. The market result estimates what the initial cash could become if invested instead.

What to verify

Review rent comps, vacancy expectations, repairs, capital reserves, property management fees, financing terms, local taxes, insurance, and transaction costs before making an offer.