Rental Property Calculator

Welcome to LandlordCalc — a professional-grade rental property calculator built for experienced single-family rental (SFR) investors. Instantly evaluate deals using the same metrics lenders and seasoned investors rely on, powered by live economic data from the Federal Reserve (FRED).

Key Metrics Explained

• Cash on Cash Return: Your annual pre-tax cash flow divided by total cash invested. This is the single most important return metric for leveraged investors — it measures the actual yield on the money you put in, not the property's total value.
• Cap Rate (Capitalization Rate): Net Operating Income (NOI) divided by purchase price. Cap rate measures a property's return independent of financing, making it ideal for comparing deals side by side regardless of loan terms.
• NOI (Net Operating Income): Annual gross income minus all operating expenses, excluding mortgage payments. NOI is the foundation of commercial property valuation and the numerator in both cap rate and DSCR calculations.
• 1% Rule: A quick screening metric — monthly rent divided by purchase price. If the result is 1% or higher, the property is more likely to cash flow positively. While not a guarantee, it's a widely used first filter to quickly eliminate overpriced deals.
• GRM (Gross Rent Multiplier): Purchase price divided by annual gross rent. A lower GRM means you're paying less per dollar of rental income. Generally, 4–7 is considered good for SFR properties; above 10 may indicate the property is overpriced relative to its income.
• DSCR (Debt Service Coverage Ratio): NOI divided by annual mortgage payments. Lenders typically require 1.25 or higher for DSCR loans, which have become one of the most popular financing tools for rental investors since 2022. A DSCR below 1.0 means the property's income doesn't cover its debt.
• 50% Rule: A rule of thumb that operating expenses (excluding mortgage) typically run around 50% of gross rental income over time. If your operating expenses are well below 50%, the deal has healthy margins; if they're above 60%, the margins may be too tight.
• Cash Recovery Period: The number of months it takes for your cumulative cash flow to return your total cash investment. A shorter payback period means less risk exposure.

Live Economic Data

LandlordCalc integrates live data from the Federal Reserve Economic Database (FRED), including the current 30-year fixed mortgage rate, Federal Funds Rate, and CPI-based inflation rate. This data powers the investment analysis commentary and dynamically adjusts return benchmarks based on current market conditions — so the targets you see reflect today's rate environment, not outdated assumptions.

How to Use This Calculator

1. Enter Property Details: Provide the purchase price, monthly rent, and any additional income sources (pet rent, parking, storage, etc.).
2. Input Acquisition & Financing: Include closing costs, initial improvements, down payment percentage, and interest rate. Use the Use Current Rate button to auto-fill today's 30-year mortgage rate.
3. Set Your Expenses: Add annual taxes, insurance, utilities, HOA fees, and variable costs. Self-managing landlords can set property management to 0%.
4. Review the Quick Rules Dashboard: The color-coded badges at the top of results give you an instant gut-check: green means passing, yellow is borderline, red is a flag.
5. Analyze the Full Results: Review monthly and annual cash flow, all return metrics, and the AI-powered investment commentary for context-aware insights.
6. Compare Deals: Click Reset Calculator and enter new figures to compare multiple properties side by side.

Key Features

• Quick Rules Dashboard: Color-coded pass/warn/fail badges for 1% Rule, GRM, DSCR, and 50% Rule — instant visual deal screening.
• Live FRED Integration: Current mortgage rates, Fed Funds rate, and inflation data pulled directly from the Federal Reserve.
• AI-Powered Commentary: Dynamic investment analysis that adjusts its benchmarks and advice based on current economic conditions.
• Comprehensive Expense Modeling: Fixed and variable expenses with customizable percentages for vacancy, repairs, CapEx, and property management.
• Monthly & Annual Views: See both monthly and annualized figures for cash flow and expenses.
• Other Income Support: Include pet rent, parking fees, laundry income, storage fees, and other ancillary income sources.