Property Management Calculator
Calculate rental property ROI, cash flow, cap rate, and expenses. Analyze profitability for residential and commercial properties.
Step 1: Property Details
Key Property Metrics
Cap Rate = (Net Operating Income / Property Value) × 100
Cash Flow = Rental Income – Expenses
ROI = (Annual Profit / Total Investment) × 100
Step 2: Financing & Options
Common Property Metrics
Good Cap Rate: 4-10%
Positive Cash Flow: $200+ per month
Target ROI: 8-12% annually
Expense Ratio: 35-50% of income
Property Analysis Results
Annual Cash Flow
Property Type Comparison
| Property Type | Avg Cap Rate | Avg Cash Flow | Expense Ratio |
|---|
Property Management Formulas
Cap Rate = (Net Operating Income / Property Value) × 100
Where:
• Net Operating Income = Annual Rental Income – Annual Expenses
• Property Value = Current market value or purchase price
Other Key Formulas:
• Cash Flow = Rental Income – All Expenses (including mortgage)
• ROI = (Annual Profit / Total Investment) × 100
• Expense Ratio = (Total Expenses / Total Income) × 100
• Gross Rent Multiplier = Property Value / Annual Gross Rent
Example Calculation
Example: $350,000 Rental Property
Property Value: $350,000
Monthly Rent: $2,500 ($30,000 annually)
Monthly Expenses: $1,200 ($14,400 annually)
Mortgage Payment: $1,400 monthly
Calculation:
Net Operating Income = $30,000 – $14,400 = $15,600
Cap Rate = ($15,600 / $350,000) × 100 = 4.46%
Monthly Cash Flow = $2,500 – $1,200 – $1,400 = -$100
Note: This property has negative cash flow but appreciates in value.
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