Rental Property Calculator
Buying to hold? Get the honest monthly number after vacancy, upkeep, management, and the mortgage, plus the one input most likely to sink the deal.
Ideas for you
Load a Texas scenario, then make it yours. Every number updates as you type.
The property
On the edge
$2,922 a year after vacancy, running costs, and the mortgage.
- Nets $243 a month with every cost and the mortgage covered.
- Cash-on-cash of 5.3% falls short of the 8% target.
- Debt coverage of 1.25x meets the 1.25x most investor lenders look for.
Cash flow goes negative once vacancy passes 17.7%, roughly 2.1 empty months a year.
Today: 6.0%. Breaking point: 17.7%.
Stress test: where it breaks
One input at a time, everything else held where you set it. The last column is where the money runs out.
| Input | Today | Breaks at |
|---|---|---|
| Rent | $2,295 | $1,968 |
| Interest rate | 6.88% | 9.23% |
| Vacancy | 6.0% | 17.7% |
| Tax & insurance | today | +50% |
Where the rent goes
One month, from scheduled rent to what’s left for you.
- Scheduled rent
- $2,295
- Vacancy allowance
- -$138
- Rent collected
- $2,157
- Property tax
- -$346
- Insurance
- -$146
- Repairs
- -$138
- Replacements (capex)
- -$115
- Management
- -$194
- Before the loan (NOI)
- $1,219
- Mortgage (principal & interest)
- -$976
- Monthly cash flow
- $243
What this means
Cash flow is what pays you. Cash-on-cash tells you whether the money you put in is working hard enough, and DSCR is how an investor lender will read the deal.
If it’s close, the usual levers are a lower price, a bigger down payment, a rate buydown, or a rent survey that supports higher rent.
These results are estimates for educational purposes only and do not constitute a credit decision or loan approval.
From rent to cash flow, line by line
Scheduled rent, minus a vacancy allowance, minus every cost of running the property, minus the mortgage. Whatever survives all four is cash flow.
Cash flow = Rent − vacancy − running costs − mortgage
- Cap rate: a year of income before the loan, divided by the price. The return if you paid cash.
- Cash-on-cash: a year of cash flow divided by the cash you put in: down payment, closing costs, and repairs.
- Debt coverage (DSCR): income before the loan divided by the mortgage payment. How many times the rent covers it.
A $198,000 Temple rental leasing at $2,295, bought with 25% down at 6.875% over 30 years. Texas-level taxes included.
- Rent after 6% vacancy
- $2,157
- Running costs
- -$938
- Before the loan (NOI)
- $1,219
- Mortgage on $148,500
- -$976
- Monthly cash flow
- $243
Positive cash flow and 1.25x coverage, but 5.3% cash-on-cash on $55,440 invested misses the 8% target, so it grades On the edge. Cash flow goes negative below about $1,968 in rent.
How Kwalifai grades a rental
Hits all three targets
Positive cash flow every month, cash-on-cash of at least 8% a year, and debt coverage of at least 1.25x.
Cash flows, misses a target
It cash flows, but either the return on your cash is thin or the rent barely covers the loan. One bad year could flip it.
Negative every month
After vacancy, running costs, and the mortgage, you would be feeding the property every month.
Blind spots that flatter a rental
No vacancy
Even great tenants leave. Turnover, cleaning, and re-leasing cost a few weeks of rent every year or two.
No repairs or capex
Small repairs come monthly. Roofs, HVAC, and water heaters come eventually. Set money aside for both.
Free management
Your time has a cost, and you may hire a manager later. Budgeting 8% to 10% keeps the numbers honest.
Forgotten closing costs
Closing costs and early repairs are cash you put in. Leaving them out inflates cash-on-cash.
Rental property questions, answered
Still unsure how a lender will see your deal? Ask Lowi AI for a scenario review.
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Multifamily
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Find the deal. Then finance it right.
Share your rental with Lowi AI to compare DSCR and conventional investment loan options. No credit check to start.
These results are estimates for educational purposes only. They are not financial, investment, tax, or legal advice, and they are not a credit decision, loan approval, or commitment to lend. Verify every figure, including rents, taxes, insurance, and rehab costs, before making a decision. Kwalifai is a technology platform. Mortgage services are provided by a licensed loan originator (NMLS #2528067), licensed in Texas, enrolled with Ensure Home Loans LLC (NMLS #1666674).